The Coalition has been forced to defend its decision to introduce a rent relief scheme, after the federal government was accused of “bowing to the pressure” from the property lobby.
Key points:The rent relief system is meant to provide rent relief to tenants who have experienced an “unfair” rent increaseThe scheme will see tenants in NSW and Queensland get $1,500 to $1.5,000 for every dollar they oweThe Federal Government says the scheme will help tenants move to a rental propertyThe Coalition says it’s a way to help reduce the impact of rent increases on housing affordability, but property owners and their supporters have argued that the scheme could also lead to more expensive rental properties.
Key point:The Coalition has defended its rent relief decision to put a rent cap on propertiesThe scheme has been described as “the most generous rent relief in the nation”It will see landlords and property owners get a $1 per dollar they are owed on their rent in an effort to help ease the impact on rent.
The scheme, which will be rolled out in 2017, will allow those who have been impacted by a rent increase, to get $100 per week in rent relief payments for the first year, and $1 in payments for each subsequent year.
This is in addition to the $1 they will be required to pay to rent out their properties to other tenants.
But the scheme has faced a number of criticisms from both the property industry and the property sector.
Landlords and property investors have been critical of the scheme, claiming it will make rental properties less affordable for tenants.
“I think it’s going to be the most generous in the country,” said property investor Stephen Dickson.
It’s an unfair thing, and they should pay for it.””
It’s going on a massive scale, I can’t see how it can be fair to anyone.”
It’s an unfair thing, and they should pay for it.
“In response, the Department of Housing and Urban Development said the scheme would help alleviate the “unintended consequences of rent rises” on property owners, and said that it was “not the right way to deal with rent”.”
The Government’s new rent relief mechanism is a simple and fair measure that will allow property owners to continue to make rent reductions to tenants, while landlords can continue to protect themselves from rent increases,” a spokesman said.”
Under the scheme the amount of rent relief will be limited to the amount that the landlord would have paid to rent the property to a new tenant.
“The spokesman also said that landlords will be able to choose between paying a small portion of their rent, or a small percentage of their income.”
The scheme is designed to ensure that the government pays the cost of providing rent relief and to ensure there is no pressure to increase rents for the benefit of rent-controlled tenants,” the spokesman said in a statement.”
Any increases will be in proportion to the increase in rents.”‘
Fairly equitable’The scheme could not be more different from the system introduced in the past by the previous Labor government, which was described as an “endless cycle of rent hikes”.
In the first few years of the program, the Government paid $400 per month to rent to renters who were already experiencing rent rises, with the Government paying the remainder to tenants with new rent increases.
But in the years following the Howard Government’s implementation of the rent control scheme in 2009, rents in the rental market rose faster than rents for all other Australian workers, meaning that the Government had to pay a large amount of money to rent those who were previously paying a lower amount.
The Howard Government decided to abolish the rent caps, which were introduced by Labor in 2004, and replaced them with a system of “rent stabilization”, whereby rent was determined on a “federal level” and the Federal Government was the only one who could impose rent ceilings.
This meant that if a landlord refused to rent a property to someone who was paying more than the amount required, the landlord could get an eviction notice.
The Federal government argued that this system was “fairly equitable” and said the system was designed to encourage landlords to offer rent relief.”
We believe this is the fairest way to ensure fair and equal access to affordable housing in Australia,” the Department said in response to questions from ABC Rural about the scheme.”
However, we have concerns that the system could also be used by landlords to increase their rents and that there could be an unintended consequence for landlords in areas where rents are low.
“The Opposition says that it will not accept this system.”
This is just another scheme that will continue to increase rent to those who are paying more, and it’s just another way that the property market will continue its upward spiral of rents,” Opposition Leader Bill Shorten said.
In a statement, Mr Dickson said the Government’s rent stabilization scheme was “very unfair to people who are already paying their fair share for housing”.”It