Affordable housing
It's bizarre that the federal government intends to hand out rent subsidies to those suffering from 'rental stress' rather than dealing with the matter properly. I fear Harry Triguboff may be right to argue that landlords would use their bargaining power with tenants to end up simply adding the subsidies to the top of existing rents. This straightforward economic theory of rent was first formulated by David Ricardo in the early 19th century.
The subsidy plan is most intriguing, however, because of the federal government's unwillingness to involve itself in urban planning. Australian cities, especially Sydney, are becoming increasingly affordable. Yet, the solution lies in providing (or requiring through legislation) affordable housing, dealing with growth in a holistic manner, planning for sustainable communities and strategically determining where new dwellings should be constructed. Resorting to handouts for renters and criticising state governments for their urban planning efforts does little, if anything, to address the underlying problems.