New tax changes fuel Australia’s worsening rental crisis as investors flee

Houses like this are now costing $1000 plus a week to rent. Australia’s home sale prices may be on the way down, but the nation’s rental crisis continues to worsen, with new research showing fewer available properties to let and soaring asking rent prices over the past three months. REA Group’s quarterly rental values report showed steep rises in asking rents across all Australian capitals over the past three months, which has coincided with the aftermath of the Albanese Government’s May budget announcement, where major tax changes for property investors were announced. MORE: Fury as $675k earner gets govt grant access A number of investors have exited the market since the replacement of the 50 per cent capital gains tax (CGT) discount with an indexed taxing of capital growth; and the abolition of negative gearing on all but newly built or commercial properties. REA Group economist Anne Flaherty The latest quarterly lending data from the ABS showed a 5.4 per cent decline in home loans over the past three months, with investor loans falling by nearly 5000 in number. House rents climbed in 57.6 per cent of Sydney suburbs over the three months to July, while unit rents increased in 61...