New report proposes using tax system to improve rental properties

New report proposes using tax system to improve rental properties

A new report from RMIT University urban policy experts recommends using Australia’s tax system to force investors to improve conditions for private renters.

The reforms would see negative gearing only available to investors whose properties meet national standards for fair rental contracts and construction quality.

Benefits for investors who opt-in would also include discounted capital gains tax, while renters stand to get a better deal with more energy efficient homes.

Co-author Professor Jago Dodson said tax breaks were a “good carrot” for property investors to make things better for their tenants.

"There's an opportunity to use negative gearing and capital gains tax to make things better for renters, without relying on negotiation with the states," he said.

"It doesn't require dramatic reform, just some tweaks to our tax laws.

"According to our proposal, investors would still get their tax benefits but only if they make positive changes for renters."

Proposed improvements include having dwellings meet a seven-star energy rating, with heating, cooling and insulation among the requirements.

Currently only required for new builds, the report recommends expanding the seven-star rating to existing rentals, with investors given tax credits in return for making improvements.

Along with physical improvements would be minimum quality, safety and security standards covering things such as minimum lease periods and rent increase limits.

The reforms would also make the standards national, leading to consistency for renters and investors alike.

Co-author Dr Liam Davies from the RMIT Centre for Urban Research said the reforms will mean better outcomes for renters across Australia.

“Renters will get a better deal out of this, regardless of which state they live in,” he said.

“By cutting out the states, the federal government can deliver these improvements quicker and easier.

“Being an opt-in scheme, it will free up money that can be reinvested into areas such as public housing.”

Download the report, Establishing a National Rental Regulation System for Australia: Making landlord tax concessions work harder for low-income tenant social outcomes, by Jago Dodson and Liam Davies.

 

Story: Aеden Rаtcliffe

18 September 2024

Share

Return to RMIT News
18 September 2024

Share

  • DSC Research
  • Property & Construction
  • Government & Politics
  • Society
  • DSC
  • Urban Design
Engage

Related News

Photo of Andrea Sharam.

Boom-and-bust cycle slowing home building, report finds

A new AHURI report led by RMIT researchers has found market volatility is the biggest barrier to lifting housing construction in Australia, with boom-and-bust cycles disrupting labour, costs, timelines and quality across the sector.

mdw-wrapup-image2-1220x732px.jpg

RMIT leaves its mark on Melbourne Design Week 2026

Melbourne Design Week has drawn to a close for 2026, with record numbers of visitors attending 350+ events across Greater Melbourne.

Three students walking down a street having a conversation.

Suburban Rail Loop forecast to get young adults walking more

The first stage of Melbourne’s Suburban Rail Loop, SRL East, is expected to get more young and working-age Melburnians out of their cars and walking, according to RMIT University modelling that predicts walking in suburbs around future stations could increase by up to 11%.

designing-regen-futures-mdw-banner-1220x732px.jpg

Designing regenerative futures: RMIT community leads the conversation at Melbourne Design Week 2026

RMIT returns to Melbourne Design Week 2026 as NGV’s ‘Futures Partner’, reaffirming the University’s commitment to nurturing the next generation of design practitioners, thinkers and leaders.

Show more
aboriginal flag float-starttorres strait flag float-start

Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Sentient' by Hollie Johnson, Gunaikurnai and Monero Ngarigo.

More information