{"id":554006,"date":"2026-07-17T07:31:16","date_gmt":"2026-07-17T07:31:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/554006\/"},"modified":"2026-07-17T07:31:16","modified_gmt":"2026-07-17T07:31:16","slug":"tax-changes-reiq-expert-reveals-the-epic-failure-of-albanese-governments-2-rent-rise-promise","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/554006\/","title":{"rendered":"Tax changes: REIQ expert reveals the epic failure of Albanese governments $2 rent rise promise"},"content":{"rendered":"

The Federal Government promised its Budget changes would add just $2 a week to rents but early figures suggest it has badly miscalculated, writes REIQ Zone Chair for Cairns, Tom Quaid.<\/p>\n

***<\/p>\n

When the latest Federal budget was released with some of the most impactful changes to property ownership and investment in a quarter of a century, it was argued that not only would it be beneficial for first home buyers, but that its effect on rents would result in an increase of just $2 a week on average. Far less than a cup of coffee. <\/p>\n

In Queensland, rent increases are restricted to once every 12 months for each property (rather than being tied to the tenancy agreement), so there\u2019s still some time to go until we see the full effect of this change since the mid-May Federal Budget.<\/p>\n

However, very early indications show lessors might not be listening to the Government\u2019s predicted impact. <\/p>\n

The median rent for a house across all capital cities rose by an average of $20 per week \u2013 with Sydney topping the list with a $50 per week increase to their median \u2013 the highest increase in four years and a whopping 25 times the government\u2019s anticipated increase. In a single quarter!<\/p>\n

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Given three interest rate rises, strong general inflation and cost of living pressures, higher rates, insurance and a tradie minimum call-out that used to pay for a good portion of your groceries, continued rent increases were always on the cards. <\/p>\n

But to take out one of the supporting structures of property investment (particularly in the capital cities) and expect the weekly difference to be less than an hour of parking? That\u2019s something.<\/p>\n

The excuse that grandfathering existing property owners protects current tenants ignores the fact that property investors often do sell their properties. <\/p>\n

Minus the assistance of negative gearing in the early years of a purchase, investors are now putting more pressure on rental income in assessing value, that pressure continues down the line to tenants, and not in a small way. <\/p>\n

A single quarter\u2019s worth of figures are one thing, but when we look at this 12 months down the track (by which time every rental property in Queensland will have been eligible for a rent review in the period) I suspect the volume of that increase will again, look very different than $2.<\/p>\n

Incentivising new builds over investment in existing housing makes sense when the supply is there but demand is lacking, and at various points over the last decade we saw enhanced first home buyer grants, and then the Homebuilder grant have a real impact on pushing new construction through and taking up idle land supply. <\/p>\n

But with no shortage of demand and a development backlog that is years away from coming unstuck, buyers can\u2019t just move their money from existing to new property. Instead, they disappear from the market. Fewer investors, fewer rental properties and higher rents. And not much for $2.<\/p>\n

Originally published as Forget the $2 promise: Expert predicts major rent shock from budget changes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Government promised its Budget changes would add just $2 a week to rents but early figures…\n","protected":false},"author":2,"featured_media":554007,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,113,61,60,219156],"class_list":["post-554006","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ie","tag-ireland","tag-reqld"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/554006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=554006"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/554006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/554007"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=554006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=554006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=554006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}