The rise in homelessness is tragic, but comes as no surprise.

It is the inevitable result of the Allan Labor Government’s decision to punish everyday Victorians who invested in the private rental market. The result is they have pushed them out of this market, meaning less rental properties and more families homeless.

A number of Members of Parliament have been warning of this for more than two years, when it was clear the policy settings would have detrimental impacts. Here is a summary of how we have arrived at this point.

One of the first changes made was relatively minor compared to others, but it still had a significant impact. Labor introduced minimum standards for rental properties, which in some cases required rental providers to spend up to $30,000 to bring their properties up the new code. Most people, myself included, would agree that having minimum standards is fair and reasonable.

However, the implementation timeframe left some property owners unable to come up with the money required for the upgrades within the set deadlines, and many couldn’t extend their loans to cover the costs. As a result, some had to sell their properties, reducing the number of available rentals and forcing renters out of a home. Those who stayed in the market often had no choice but to significantly increase rents to recover their expenses, increases that many tenants simply couldn’t afford.

In the same period the government also gave tenants more rights, allowing pets without the property owner’s approval and giving the ability to make minor renovations without permission.

Some rental providers saw this as an erosion of their rights and left the market, choosing to invest elsewhere where they have complete control over their investment.

At this point in time, it needs to be stated that the vast majority of rental providers (landlords) we know are mum and dad households with one property, who have chosen to invest their savings in real estate rather than shares, superannuation or some other form of investment.

Labor should have realised from its minimum standards change, that any form of additional cost on rental providers results in them either leaving the market, reducing the pool, or increasing rents.

But no, they did not – and remarkably, then came the real hits.

The first was the land tax increases on second residences. This hit the rental sector harder than anything else.

Rental providers left in droves, either investing interstate where they did not have to pay this massive fee, or changing their investment model away from real estate. The impact this had on rental properties was massive. Where rental providers stayed in, they had to pass on this cost they could not absorb to renters, many who in turn could not afford the increase.

My office, like most, had a constant stream of tenants saying they could not afford the resulting rent increase, or were being evicted as their rental property was being sold – and they had nowhere to go.

Real estate agents reported up to 100 enquiries (in some cases more) per rental property, from people needing a home.

It seems Labor operated under the assumption that tenants would somehow be in a position to purchase the property when it was listed for sale. In reality, however, these homes were quickly snapped up by other investors or buyers with the financial means to outbid them.

The reason most were renting in the first place was because they could not afford a deposit. This did not change overnight.

All the while Labor said it was providing more social housing homes for the needy as part of its “Big Build”. Trouble is, it wasn’t.

In East Gippsland, Wellington and Latrobe we had over 30 LESS public housing homes in 2024 than we had in 2015. Yes, we had over 30 new ones built, but more than 60 had been sold off or demolished in that period.

In summary, we had rental providers leaving, for those who stayed rents were being increased pushing more families out and the government reducing public housing homes in our area!

This was government policy on all counts – yet Labor will tell you it was acting on homelessness.

Unfortunately, the story does not end there – it gets worse.

Just weeks ago, the Allan Labor Government announced the new Emergency Services and Volunteers Fund Levy. A major increase that will have every property holder – both primary place of residence and owners of second homes (rentals) – paying a lot more.

Labor says renters do not have to pay. How stupid. Just like the minimum standards payment and the land tax, the cost of the levy will be passed on to renters, or the property will be sold. They have simply not learned.

And renters, if they can find a place, have less capacity to save for a first home deposit due to higher rents they are being forced to pay. Rental providers who cannot afford these increases only have two options – sell the property or pass on the cost. There is no other option.

Many seeking rentals are applying for dozens of homes and getting nowhere. They are forced on to a public housing waitlist that now has over 55,000 Victorian families waiting and is growing fast. Timeframes for offers on a public housing is taking years, not months. This is terrifying for people looking down the barrel of eviction, and no place to go in a narrow and expensive housing market.

Meanwhile, caravan parks are full, homelessness services are overwhelmed, and rough sleeping is on the rise in our towns. Some of these homeless people are working families who are trying to hold down jobs and have children enrolled at local schools. They can’t leave the town but can’t find a home.

All brought about by policy from a government that has been forced to implement these charges that are not in place in any other state or territory.

Why?

The reason this is occurring is the State’s finances have been grossly mismanaged to the stage we are to hit a debt level of $192 billion - with interest repayments alone of $28.8 million per day, or $1 billion every six weeks. This is the reason we are seeing program cuts across the board and new taxes.

Labor cannot manage money and Victorians are paying the price. You cannot tax your way out of a financial crisis like this, you have to rein in costs and spending.

But the story does not end there. It’s about to get even worse.

Jacinta Allan has decided we can push on with the Suburban Rail Loop, which has a total (stage one only) cost of $50 billion. How is that going to be paid for when your interest repayments alone are already a billion dollars every six weeks.

The homelessness situation we are in, is the result of policy. But don’t worry, Labor’s next media release will tell you it cares about the vulnerable.

We simply cannot afford another $50 billion for a rail line from Cheltenham to Box Hill (it does not even run to the city). The State Government needs to start living within its means and the only way this can be paid for is new taxes we have not yet seen.

Before finishing and getting back to housing, part of the solution is to stop punishing rental providers. Make real estate investment attractive again for mum and dad investors compared to other options – as it is in other states, and the problem will start to rectify itself.

Monday, 7 July 2025