NSW urged to follow Victoria on rent rise protections
Homelessness NSW
Tenants on the brink of homelessness could be spared devastating rent hikes if New South Wales follows Victoria’s lead and cracks down on increases above inflation, Homelessness NSW said today.
The call comes amidst a deepening cost-of-living crisis, with a single rent increase now enough to push vulnerable renters out of housing altogether.
“Right now, an above-inflation rent increase can be the event that ends someone’s tenancy,” Homelessness NSW CEO Dom Rowe said.
“With winter approaching and grocery prices expected to surge by 20 per cent we are deeply concerned about people who are already teetering on the edge.
“Victoria has recognised this risk and recently acted. NSW should do the same before more people are pushed into homelessness.”
Under new rules in Victoria, tenants can challenge rent increases that exceed CPI, a safeguard Homelessness NSW says could make a critical difference for people on the lowest incomes.
In NSW, tenants can apply to the NSW Civil and Administrative Tribunal (NCAT) to challenge an excessive rent increase but the Tribunal’s assessment is largely confined to prevailing market rents and cannot consider whether an increase exceeds inflation.
The warning comes as mortgage holders face a steep rise in repayments, with many strained investors likely to pass increases on to tenants.
Homelessness NSW said while those pressures are real, renters - particularly those on the lowest incomes - have far less capacity to absorb rising costs.
“We know many landlords are grappling with higher interest rates and that pressure will undoubtedly flow through to tenants,” Ms Rowe said.
“But renters don’t have the same buffer. For someone on income support, even a modest rent increase can be the difference between staying housed and losing their home altogether.”
A single person on JobSeeker currently receives around $817 per fortnight, while a young person on Youth Allowance living away from home receives about $685 - both far below what is needed to afford rent in Sydney.
Rental stress has surged across New South Wales, with 1 in 5 low-income renting households now under financial strain.
Typical rents in Sydney are critically unaffordable for many, with single working parents spending between 33 and 79 per cent of their income on rent, pensioners up to 83 per cent, and singles on Job Seeker as much as 131 per cent.
“There has been no meaningful increase in income support, and people simply cannot keep up with rising rents,” Ms Rowe said.
“For someone on these payments, an above-inflation increase can be the tipping point into homelessness.”
With the 2026 street count just weeks away, the 8 per cent surge in people sleeping rough last year is tipped to rise even further as the cost-of-living crisis sets in.
Homelessness NSW said financial stress is also likely to drive an increase in family and domestic violence, placing further strain on already overstretched services.
“We’ve seen support extended to industries under financial pressure, but nothing equivalent for those most vulnerable and at risk of losing their home,” Ms Rowe said.
“If governments can move quickly to support business, they should act just as decisively to keep people housed ahead of what will be a very tough period.”
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Eliot | 0423 921 200