SOUTH Australian senator Tim Storer has called for the introduction of tax offsets for landlords of low income rental properties in a move that could significantly lower power bills of low income earners.
Senator Storer presented a bill to the senate on August 22 calling for offsets of $2000 a year for landlords of properties that charge $300 a week or less.
Under the proposed bill, landlords would be able to claim offsets annually in order to complete upgrades to make their properties more energy efficient.
He said each year around 100,000 Australians had their electricity disconnected.
“Most of them are low income earners who rent their homes, many of them elderly,” he said.
Senator Storer pointed to claims by the federal government that if the National Energy Guarantee were introduced power bills would fall by $150 a year.
“It is estimated that improved energy efficiency in homes could cut energy consumption by up to 50 per cent in many households,” he said.
He said he hoped his bill could provide a “platform” for steps to incorporate energy efficiency requirements in the National Construction Code.
“My proposals would fix an anomaly in the tax code where landlords are able to claim the cost of repairs, for example for old inefficient air-conditioning units that do not meet today’s minimum standards.”
National Shelter’s chairwoman Alice Clark said the non-government organisation was happy Senator Storer had started the conversation, but would like to see the measures go further.
In a written submission, National Shelter point out that many people living in low income households are paying more than $300 a week in rent, particularly in metropolitan areas.
The submission points to the Rental Affordability Index, which indicates pensioners living in single dwellings in metropolitan areas with an estimated gross annual income of $27,100 were spending high percentages of their income on rent.
It estimates pensioners living in metropolitan areas are required to pay 60 per cent or more of their income on rent on average, with the figure reaching 94 per cent in the Greater Sydney area.
The submission says National Shelter would like to see a threshold of $450.
“Single pensioners might be paying more than $300 a week,” Dr Clark said.
“We’re also wondering if the incentive for landlords is perhaps not high enough to get people moving on this issue.”
- Read more: Seniors need help with power bills: National Seniors
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