The Finance Brokers Association of Australia (FBAA) has responded to new rental market data* showing soaring rental prices by urging the federal government to swallow its pride and change course before it’s too late. 

FBAA CEO Leo Gagic said the latest figures from PropTrack showing national median rents reaching another record high reinforce the concerns the association raised even before the changes to capital gains tax and negative gearing were announced at the last federal budget.

“We warned that discouraging investors would increase costs for Australians who rent, and we are now seeing this happen exactly as predicted,” he said.

“The changes that are decreasing the supply of rental availability while demand is increasing are hurting the very people, they were supposed to help, including Australians on lower incomes, single parents, and aspiring first home buyers.

“How does making it harder for Australians to save a deposit improve housing affordability?” he asked.

“Every additional dollar spent on rent is a dollar that cannot go towards buying a home.”

Mr Gagic said the government must now admit that the policy settings are delivering the opposite of their intended outcome.

“In April, we challenged the government to be prepared to correct course if the CGT and negative gearing changes backfired.

“Now, we’re asking the prime minister and the treasurer to do it.”

*Source: realestatecomau-Market-Insight-Rental-Prices-June-2026.pdf