30/09/2026
I just secured a lease renewal with an 8.34% rent increase on my investment property in Wembley.
An 8.34% jump is significant—more than double inflation. While comps supported higher, this wasn't about pushing for maximum rent.
This scenario highlights a real, unintended consequence of recent policy shifts around Negative Gearing and Capital Gains Tax.
The government’s goal to help First Home Buyers by curbing investor demand is noble. Population growth and family formation are vital to Australia's future, and helping young people secure housing is essential.
However, under decades of neoliberalism (small 'l'—referring to market-led economic policy, not party politics), Australia relies almost entirely on private Mum-and-Dad investors to house the 30%+ of the population who rent.
Yet, when policy shifts restrict tax settings, it penalises that private capital without the government stepping in to build public housing alternatives.
When tax rules change, it hits immediate holding costs and cash flow. Property investors are forced to adjust their focus directly toward yield to make holding the asset viable.
The ultimate unintended consequence: squeezing rental supply pushes rents higher, making it even harder for young Australians to save for a deposit or start a family.
With Australia's birth rate sitting at historic lows, making housing this expensive forces young couples to delay having children. Sustained population decline ultimately shrinks our future workforce, strains the tax base, and drags on national productivity.
I genuinely empathise with young people and tenants facing this environment.
But if investors across the country must adapt to offset higher policy costs, that pressure inevitably lands on rents. Tightening tax rules on supply doesn't lower rents—it puts upward pressure on them.
If you’re navigating these tax changes, feel free to reach out.
Reece Hogan - Director, Ocean Edge Finance - [email protected] | oceanedgefinance.com.au
