Greens Rent Freeze Victoria | Multi-Year Freeze & Cap

The Victorian Greens want rents frozen for two years at 2023 levels, then capped at 2% every two years, enforced by VCAT with exemptions for hardship and major repairs.

How the freeze and cap work

The Greens' rent freeze proposal represents the most radical housing intervention proposed by any major Australian political party. The plan would freeze rents statewide at December 2023 levels for two years, followed by a strict 2% increase ceiling every 24 months, fundamentally restructuring Victoria's rental market.

Under the proposal, Victorian Civil and Administrative Tribunal (VCAT) would enforce the freeze through civil penalties up to $11,000 per breach. Landlords could apply for hardship exemptions if mortgage principal and interest payments plus council rates exceed 40% of gross rental income, but the threshold is deliberately high to limit exemptions.

Enforcement and exemption mechanisms

The rent freeze would be enforced through Victoria's existing rental dispute resolution system, with VCAT empowered to impose significant financial penalties for non-compliance. The Greens argue this approach avoids creating new bureaucracy while ensuring effective enforcement.

• Civil penalties up to $11,000: Substantial fines to deter rent increases above frozen levels
• Hardship exemptions: Available when mortgage and rates exceed 40% of rental income
• Major repair pass-through: VCAT approval for increases following capital works above $15,000
• Independent auditing: Third-party verification required for repair cost claims

Economic and housing-supply impact

The Parliamentary Budget Office's November 2024 inquiry into rental market dynamics revealed Victoria lost 24,700 rental properties in 2023-24 as investors exited the market. The Greens argue their freeze would slow this attrition by reducing 'panic selling' driven by negative gearing changes and land tax increases.

Treasury modelling predicts the rent freeze would reduce Consumer Price Index by 0.3 percentage points in 2026 but increase it by 0.2 percentage points in 2028 as supply constraints tighten. The Greens' vacancy tax hike—increasing to 3% of Annual Assessed Value for homes empty six months or more—aims to return 12,000 properties to the rental market.

Market dynamics and supply impact

The rental market is experiencing significant structural changes, with substantial property losses offset by the Greens' targeted vacancy tax increases. Treasury analysis reveals complex short and long-term inflation effects from the proposed freeze.

• 24,700 rental homes lost in 2023-24: Parliamentary Budget Office findings show accelerating investor exit from Victorian rental market
• 12,000 properties to return via vacancy tax: Greens estimate higher vacancy tax will force long-empty homes back into rental market
• CPI impact: -0.3pp (2026), +0.2pp (2028): Treasury modelling shows short-term inflation reduction followed by supply-driven price pressure
• Legislative path requires Labor support: Greens need Labor votes in Legislative Council to pass rent freeze legislation

Legislative path in Spring-st 2025

The Greens will introduce their rent freeze as a Private Members Bill in August 2025, requiring Labor support in the Legislative Council to pass. With 11 Greens plus 15 Labor members providing a majority, the policy's success depends on convincing Labor to abandon its preference for targeted rent relief over blanket controls.

Labor has expressed openness to targeted rent relief but warns that blanket freezes risk 'spooking investment' and reducing housing supply. Cross-bench members from Animal Justice Party and Legalise Cannabis Victoria are likely kingmakers, seeking pet-bond reforms and cannabis-use tenancy clauses in exchange for support.

Frequently Asked Questions

The Victorian Greens' rent freeze proposal represents the most ambitious rental market intervention attempted in Australia, seeking to provide immediate relief to struggling renters while fundamentally restructuring landlord-tenant relationships. Critics argue it risks reducing supply and investment, while supporters see it as essential protection against runaway rental costs.

The policy's success will depend on careful implementation, effective enforcement through VCAT, and coordination with broader housing supply initiatives. International examples provide mixed evidence on rent control effectiveness, suggesting outcomes depend heavily on specific design features and complementary policies like vacancy taxes and public housing investment.