Econ 101… Not just in this instance but with all suppliers. All suppliers.
“While this concern is widespread, it overlooks the fact property investors will always look to charge as much as the market can bear.
If rental supply is low relative to demand, as has often been the case [in recent years](https://www.abs.gov.au/articles/latest-insights-rental-market), landlords will look to raise rents. But they do this because market conditions allow it, not just because their own costs have changed.
To put it another way: if your landlord received a tax *cut*, would you expect them to pass that cut through to your rent?”
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Econ 101… Not just in this instance but with all suppliers. All suppliers.
“While this concern is widespread, it overlooks the fact property investors will always look to charge as much as the market can bear.
If rental supply is low relative to demand, as has often been the case [in recent years](https://www.abs.gov.au/articles/latest-insights-rental-market), landlords will look to raise rents. But they do this because market conditions allow it, not just because their own costs have changed.
To put it another way: if your landlord received a tax *cut*, would you expect them to pass that cut through to your rent?”