Dear Premier Palaszczuk,

On behalf of the Australian Proprietors Alliance Incorporated (APA), an organisation representing business owners, investors, entrepreneurs, property owners and landlords formed in January 2018, we would like to express our opposition to the new law that limits rent increases to once per year and the proposed rent cap in Queensland Parliament.

We believe that this new law and the proposal is unfair and unreasonable and will have significant negative effects on both renters and landlords - we urge you to reconsider.

Landlord rights are equally as important as tenants’ rights, however we believe that the new law and the proposed rental cap significantly impinges the property rights of landlords. In the past five years, your government has raised multiple proposals that have unfairly targeted landlords, such as abolishing a landlord's right to not renew a tenancy at the end of an agreed term, losing a landlord's right to refuse pets, introducing a tenant's right to make modifications to a rental property without the landlord's consent and reforming land tax by taking into account the value of any interstate land owned by a landowner.

The new law and the proposed rental cap legislation in Queensland face criticism due to several potential unfair and unreasonable factors. Firstly, the rent limitation and the rental cap violate property rights, as they limit the amount landlords can charge for rent. Secondly, the limitation and the cap are unfair to landlords who face increasing interest rates, land tax and council rates. Rent limitation and rental caps could lead to a decrease in rental income, discouraging landlords from investing in new properties or maintaining existing ones. This could result in a decrease in the quality and quantity of rental housing available, leading to market distortion. Rent limitation and Rental caps do not allow for flexibility in rental pricing, which may be necessary for landlords to maintain the property or make improvements. Moreover, rent limitation and rental caps may disproportionately affect smaller landlords who own a limited number of rental properties. Lastly, rent limitation and rental caps may not effectively address the root causes of the rental crisis, such as inadequate housing supply, increasing demand for rental properties and affordability issues. Rent limitation and Rental caps can also deter investors from purchasing properties thus reducing the potential supply of rental housing.

Your government has passed legislative amendments to limit rent increases to once-yearly will apply from 1 July 2023 onwards – but the transition arrangements will mean that contractually agreed rent increases after this date will also no longer be valid. It’s one thing to introduce rent control from a certain date onwards, but it’s a whole other proposition to retrospectively create laws that override previously agreed contractual arrangements.  it was questioned the legality of the retrospective nature of the new laws.

Monitoring these caps to ensure compliance will also require strict administration and in some cases enforcement.  This will place an additional burden on already stretched government agencies, finances and ultimately taxpayers.

It is essential to note that the rental crisis is a complex issue that requires a multifaceted solution.

Solving the housing crisis is an important factor in solving the rental crisis and our organisation has put forward some potential strategies that could be implemented.  We are certainly aware that your government already plays a significant role in some of the following, however consideration must be given to ensure that all stake-holders, particularly landlords who contribute to supply, are given a level-playing field:

1.Increase the supply of affordable rental housing: Governments can invest in the construction of affordable rental housing units, provide incentives for developers to build affordable rental housing, and relax zoning and land-use regulations to encourage the construction of more rental housing.

2.Provide subsidies and tax incentives: Governments can offer subsidies and tax incentives to developers and landlords who provide affordable rental housing units and provide rent assistance to low-income households.

3.Regulate short-term rentals: Governments can regulate short-term rentals such as Airbnb to ensure that they do not contribute to a shortage of long-term rental housing.

4.Increase access to credit: Governments can offer low-interest loans to first-time homebuyers and work with financial institutions to create more accessible and affordable mortgage products.

5.Upzoning: Governments at the local level have started responding by upzoning single-family areas.

6.Increase the number of occupants living in one premise since smoke alarms systems in all rental properties have been upgraded as interconnect systems to comply with the new law.

7.Address homelessness: Governments can provide supportive housing and services to homeless individuals and work to prevent homelessness through early intervention and prevention programs.

8.Encourage community-based solutions: Communities can create and support community land trusts, co-housing, and other models that promote affordability and community ownership of rental housing.

9.Provide financial assistance to renters: Governments can provide financial assistance to renters who are struggling to pay rent, such as through rent relief programs and emergency grants.

10.Increase public transportation: Governments can invest in public transportation to make it easier for people to access rental housing that is farther away from urban centres and reduce the demand for rental housing in high-demand areas.

11.Reform tax policies: Governments can reform tax policies to discourage speculation and encourage long-term investment in housing and to increase the supply of affordable rental housing.

12.Rescind foreign investor surcharges: with about 36% of people in Queensland living in rental accommodation, the supply of rental properties is crucial, and therefore we need investors – both local and foreign – to make important contributions to the stability of the rental market.

13.Stamp duty reform : transition from stamp duty to a broad-based land tax must be seriously explored if we hope to create a strong structure foundation for an efficient and equitable property market. Stamp duty is an inefficient tax that acts to slow the property market, reduces economic growth and makes housing less affordable.

APA urges your government to reconsider these reforms in favour of laws that offer safety, security and stability to both landlords and tenants alike; our members can only support a party that will protect landlords' rights, safeguard our assets and investments, whilst giving all Queenslanders the opportunity to prosper from the same.

Yours faithfully

Committee of

Australian Proprietors Alliance Incorporated (APA)