ACTU Demands Two-Year Default Leases
The Australian Council of Trade Unions is launching a major push for stronger renters’ rights and an expansion of public housing stock. The move follows the peak union body’s support for the federal government’s May budget property tax changes.
Under proposals put forward by the ACTU, residential tenancy agreements would carry a default standard of at least two years. This structural shift aims to protect tenants from frequent rent hikes and ongoing instability. ACTU president Michele O’Neil argued that the current housing market fails to reflect the reality that millions of working Australians rent their homes.
“Workers deserve not only secure jobs, but also secure housing,” O’Neil said. She noted that while the default standard would double from one year to two, renters could still negotiate shorter terms if desired.
Alongside extended leases, the union movement is calling for tighter eviction procedures and the establishment of a national rental regulator.
Property Market Cooling and Surging Rents
The campaign arrives as the broader property market experiences a notable shift. Combined with higher interest rates and low affordability, the May budget’s property tax changes have contributed to a slowdown in property prices.
Economists project property values could fall by up to 14.5 percent in Sydney over the next 18 months before a recovery begins in 2028.
Yet relief remains elusive for tenants. Rents have surged by more than 20 percent since the conclusion of pandemic-era rent freezes.
At the same time, new research released by Cotality indicates some heat is beginning to leave the rental market. Vacancy rates are showing tentative signs of a slowdown in regional areas.
Push for 10 Percent Public Housing Mandate
Beyond tenancy reforms, the ACTU campaign targets a substantial increase in government spending on public housing. The union wants both federal and state governments to mandate that 10 percent of all new housing stock be dedicated to public housing. The ultimate goal is reaching a total of 6 percent of all homes nationwide.
Australia currently maintains approximately 300,000 public homes. Adding 10 percent of new builds to that stock would yield roughly 20,000 properties annually.
“Under the Hawke government, one in 10 new homes built were public housing, but today that’s closer to 1 in 50,” O’Neil said.
“If we’re serious about fixing the housing crisis, we must increase public housing stock to free up homes in the private rental market and make renting more affordable for everyone.”
Canberra Clashes Over Inflation and Rents
The national debate has also sparked sharp political clashes in Canberra.
Shadow Treasurer Tim Wilson accused the Albanese government on Tuesday of intentionally driving up rents through its budget policies. He argued the strategy was designed to boost tax revenue and manage inflation.
Treasurer Jim Chalmers swiftly rejected the opposition’s claims. He pointed to Treasury estimates suggesting the budget tax changes would add less than $2 a week to the median rent.
“The best way to assess the impact of these policies is over the next couple of years, not over the first couple of months,” Chalmers told the Nine Network.
He emphasized that building more homes and reforming the tax system remain the government’s primary objectives for improving affordability.
