AUSTRALIANS don’t need another tax, “we need homes”. The idea of a “spare bedroom tax” is not only unfair, but also completely misguided.
Families are already battling soaring mortgages (as Australians are already struggling under crippling interest rates that remain stubbornly high, pushing families to the brink), sky-high rents, power bills, and groceries that climb every week. On top of that, we carry the weight of income tax, GST, land tax, stamp duty, and countless levies.
How much more does the government expect everyday Australians to pay before we break?
A spare room is not a luxury. It’s where children return when life falls apart, where elderly parents are cared for, where family visits, or where someone sets up a desk to work from home.
Taxing that space won’t create a single new home; it will only punish people who have worked hard for the roof over their heads.
The housing crisis has one cause: not enough supply (market disequilibrium). If the government is serious about fixing it, then cut red tape that slows construction, support affordable housing projects, and make it easier for investors to put properties on the rental market.
In addition to this, the government should focus on policies that streamline planning approvals, incentivising, and encouraging long-term rental investment as these will deliver far more impact than adding yet another tax burden on everyday Australians.
The UK tried a similar policy (officially the “under-occupancy penalty” or “removal of the spare room subsidy”, and it failed, leaving families worse off without fixing the housing crisis.
A Cambridge‑Ipsos MORI report found only 8 per cent of affected tenants actually downsized, while 80 per cent made no move. Most were stuck because there simply weren’t smaller homes available.
Punishing families with yet another tax won’t solve this crisis. Building homes will!
