Over the past two days the Premier has announced a mega sports stadium with a retractable roof and a massive cut to land tax.
Peter Gutwein farcically claims his land tax gift to investors will bring down rents. When we questioned him today in Parliament on how that could possibly be true, he was, of course, unable to explain.
In the last twelve months – following the Liberals’ last round of land tax cuts – rents have been spiraling out of control. They have increased by 9% in the South, 10% in the North-West and 15% in the North.
According to CoreLogic, rents in Hobart are at an average of $521 a week. They are now more expensive than Perth, Melbourne and Adelaide – and even Brisbane which sits at $507 per week.
SGS Economics, in their recent Rental Affordability Index 2021, list Hobart as the least affordable capital city. They specifically note, “Hobart is the only capital city where the average rental household would be considered in rental stress”.
They confirm, the Hobart median rental rate has grown by 50% across dwelling sizes since 2016. It is now higher than the Melbourne median at any point in the past, despite the average rental household income being 33% lower. SGS specifically attribute this to “an inadequate supply of rental housing...".
Given the Liberals’ last round of land tax cuts coincided with increased rent, it’s unclear how yesterday’s gift to those wealthy enough to buy a second, third or fourth property will bring them down.
This is not about easing the cost of living for renters. Peter Gutwein should admit his announcement is actually about cozying up to the wealthy propertied class before a Federal election.
It is clear the Premier is only interested in placing a roof over people’s heads if they are kicking a football.