Fears Tassie Rental Crisis Will Worsen After Rental Affordability Scheme Gets Axed

Loss of 36,000 affordable homes

Article heading image for Fears Tassie Rental Crisis Will Worsen After Rental Affordability Scheme Gets Axed

There are concerns Tasmania’s rental crisis will only go from bad to worse as the Federal Government phases out the National Rental Affordability Scheme. 

About one thousand Tasmanian homes will be affected by the scheme’s departure across the next five years.

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Meanwhile, Australia will see more than 6,600 homes cease to be part of the scheme this year alone, while 36,000 houses nation-wide will eventually be removed from the scheme.

Spokesperson for Everybody’s Home Maiy Azize said phasing out the scheme was the wrong move. 

“We’re in the midst of a rental market that’s never been more expensive and we’re seeing rental vacancies rates at record lows, so this is absolutely the worst time for a scheme like this to be winding down,” she said.

Azize further told the Age Australia was already short about 500,000 social homes and rental conditions meant it was harder than ever before to find a roof over their heads.

“We’ve heard stories about people living in their cars for months at a time while they try and find a place that’s affordable,” Azize said.

“So this is absolutely a problem that’s getting worse, and the unavailability of social homes and the enormous waiting list is playing into it.”

The National Rental Affordability Scheme was launched by the Rudd government in 2008 and provided annual subsidies of nearly $11,000 for 10 years to property owners who rented out newly built dwellings at 20 per cent less than the market rate to lower and middle-income households.

The scheme was axed by the Abbott government in 2014 and will complete end by 2026.

9 January 2023

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