Comments on: Surge in Rents – Bureaucracy or Market response? http://www.prosper.org.au/2008/07/29/surge-in-rents-bureaucracy-or-market-response/ Access → Opportunity → Prosperity Tue, 07 Feb 2012 03:45:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Lloyd Churches http://www.prosper.org.au/2008/07/29/surge-in-rents-bureaucracy-or-market-response/comment-page-1/#comment-384 Lloyd Churches Fri, 01 Aug 2008 15:27:59 +0000 http://www.prosper.org.au/?p=256#comment-384 I read the Tenant's Union's pdf about Commonwealth Rent Assistance. It says: "The Commonwealth Government spends more than $2 billion on CRA each year. Despite this, 35% of recipients of CRA still pay more than 30% of their income in rent." "The Tenants Union believes that CRA must be reformed to ensure that it really meets the needs of low income Australians renting privately." I wonder what reform they have in mind. If they think that giving even more money to these people will help they are wrong. The more people have, the more they have to give in rent. Taking away the rental assistance wouldn't hurt them that much either because having less to pay, rents would be lower, but then again if giving them less means that they don't have to tax them as much then they have more after tax income to force up rents. The only real solution then is supply side. Capture the site rental of land for public revenue. This will put downward pressure on rents as the market is flooded with the inefficiently used sites. I read the Tenant’s Union’s pdf about Commonwealth Rent Assistance. It says:

“The Commonwealth Government spends more than $2 billion on CRA each year. Despite this, 35% of recipients of CRA still pay more than 30% of their income in rent.”

“The Tenants Union believes that CRA must be reformed to ensure that it really meets the needs of low income Australians renting privately.”

I wonder what reform they have in mind. If they think that giving even more money to these people will help they are wrong. The more people have, the more they have to give in rent.

Taking away the rental assistance wouldn’t hurt them that much either because having less to pay, rents would be lower, but then again if giving them less means that they don’t have to tax them as much then they have more after tax income to force up rents.

The only real solution then is supply side. Capture the site rental of land for public revenue. This will put downward pressure on rents as the market is flooded with the inefficiently used sites.

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