Rent caps could shrink rental supply
Opponents said freezing rents and then tightly capping future increases would push investors out of the rental market, reduce available housing and worsen shortages and affordability in the long run.
Freeze on Rent and Rate Increases
Current status
This bill did not become law and is no longer proceeding.
Policy area
Welfare & housing
What does this bill do?
Australia would have a two-year national freeze on rent increases through CommonwealthThe federal government of Australia; on this page it is the level of government the bill wants to use to push rent changes through deals with the states. deals with the states, aimed at easing pressure in the housing and rental crisis.
Why was it introduced?
Record rent rises, a housing crisis and rapid interest rate hikes left renters and mortgage holders facing sharply higher costs. The bill lets the CommonwealthThe federal government of Australia; on this page it is the level of government the bill wants to use to push rent changes through deals with the states. push states into a two-year rent freeze, cap later increases, tie limits to properties, and direct the Reserve Bank to freeze rates for a set time.
Broader context
After rents recorded their biggest annual rise in 2022 and 2023 was forecast to be even worse, with affordability collapsing for low-income renters, governments were already discussing stronger tenant protections as Australia’s housing and rental crisis deepened. The bill, introduced in June 2023, proposed a two-year national rent freeze, strict limits on later increases and a temporary interest-rate freeze power for the CommonwealthThe federal government of Australia; on this page it is the level of government the bill wants to use to push rent changes through deals with the states., but it stalled in the SenateThe upper house of the Australian Parliament, where this bill was debated but did not pass. and lapsed when Parliament ended in July 2025.
Key criticism
Critics argued the bill's rent freeze and long-term caps would drive landlords and investors out of the market, reduce rental supply and leave affordability worse over time. That case was raised by Labor, the Coalition and property-sector critics, while opponents also said freezing interest rates would wrongly undermine the Reserve Bank rather than fix housing shortages.
Who supported it?
Senator Mehreen Faruqi introduced this bill. Speeches supporting it came from Greens.
Introduced in Senate 19 June 2023
Failed in Senate 21 July 2025
Did not reach House —
Did not become law —
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
763 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
What does this bill do?
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Australia would have a two-year national freeze on rent increases through CommonwealthThe federal government of Australia; on this page it is the level of government the bill wants to use to push rent changes through deals with the states. deals with the states, aimed at easing pressure in the housing and rental crisis.
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After the freeze ends, landlords could raise rent by no more than 2 per cent every two years.
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Rent limits would stay with the property, so a landlord could not avoid them by changing tenants.
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New rentals and heavily renovated homes entering the rental market during the freeze could not be priced above the median rentThe middle rent price for similar homes in an area; the bill uses this as the ceiling for newly entering rentals and heavily renovated homes. for similar homes in the same postcode.
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The federal government could direct the Reserve Bank to freeze interest rates for a set period.
Show source excerpts
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This Bill would see the Commonwealth work with the States to freeze rent increases nationwide for two years, cap rent increases thereafter, and ban no-grounds eviction.
Freeze on Rent and Rate Increases explanatory memorandum -
Following the two year period in which rent increases are frozen, rent increases are limited to a maximum of two per cent every two years; and
Freeze on Rent and Rate Increases explanatory memorandum -
Rent control measures are to apply to the property itself, regardless of any changes to the tenants of the property.
Freeze on Rent and Rate Increases explanatory memorandum -
If a property is substantially renovated or enters the rental market during the rent freeze period (having not been previously rented), the rental price is to be limited to no more than the median rent price for a property of the same type in the same postcode for the duration of the rent freeze period; and
Freeze on Rent and Rate Increases explanatory memorandum -
This item adds a note to section 11 stating that orders made to determine monetary policy under section 11 can include freezing interest rates for a specified period of time.
Freeze on Rent and Rate Increases explanatory memorandum
Context
Broader context for this bill
After rents recorded their biggest annual rise in 2022 and 2023 was forecast to be even worse, with affordability collapsing for low-income renters, governments were already discussing stronger tenant protections as Australia’s housing and rental crisis deepened. The bill, introduced in June 2023, proposed a two-year national rent freeze, strict limits on later increases and a temporary interest-rate freeze power for the CommonwealthThe federal government of Australia; on this page it is the level of government the bill wants to use to push rent changes through deals with the states., but it stalled in the SenateThe upper house of the Australian Parliament, where this bill was debated but did not pass. and lapsed when Parliament ended in July 2025.
- 2022
Rents record their biggest annual rise
The explanatory memorandum says rents rose by a record amount in 2022, setting the backdrop for calls for stronger national intervention.
Freeze on Rent and Rate Increases explanatory memorandum ↗ - 03 May 2023
Housing ministers agree to strengthen renter protections
State and territory housing ministers agreed to strengthen renter protections in a red-hot housing market while warnings about rent caps and supply were already part of the public debate.
Australian Financial Review ↗ - 19 June 2023
Bill introduced to freeze rent and rate increases
Senators Mehreen Faruqi and Nick McKim introduced the bill to create a two-year national rent freeze, cap later rises and let the CommonwealthThe federal government of Australia; on this page it is the level of government the bill wants to use to push rent changes through deals with the states. direct a temporary interest-rate freeze.
Australian Parliament House ↗ - 22 June 2023
Investor backlash sharpens the argument over rent controls
The Australian Financial Review reported investors saying rent controls would raise political risk and reduce rental supply, highlighting the resistance the proposal faced outside Parliament.
Australian Financial Review ↗ - 18 Oct 2023
SenateThe upper house of the Australian Parliament, where this bill was debated but did not pass. debate centres on the housing crisis and the bill's risks
When debate resumed, supporters cast the bill as an answer to surging rents and mortgage stress while opponents argued it would worsen supply and was poor policy.
Hansard ↗ - 21 July 2025
Bill lapses at the end of Parliament
The proposal never passed and formally fell away when Parliament ended, leaving its national rent and rate freeze measures unimplemented.
Parliamentary timeline ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 19 June 2023
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second reading opened 19 June 2023
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Second reading debate 18 Oct 2023
The bill reached this recorded parliamentary step.
Lapsed at end of Parliament 21 July 2025
The bill reached this recorded parliamentary step.
Key criticism
The main case against this bill
Critics argued the bill's rent freeze and long-term caps would drive landlords and investors out of the market, reduce rental supply and leave affordability worse over time. That case was raised by Labor, the Coalition and property-sector critics, while opponents also said freezing interest rates would wrongly undermine the Reserve Bank rather than fix housing shortages.
Criticism focused mainly on supply effects and interference with monetary policy, not on denying the rental crisis.
Interest-rate freeze would undermine the Reserve Bank
Labor argued the bill's proposal for the federal government to direct the Reserve Bank to freeze interest rates was a political stunt that would create false hope and cut across independent monetary policy.
Further sources
Votes
Recorded votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Mehreen Faruqi
Faruqi strongly supports the bill, saying it offers real action to freeze rent and interest rate increases during an unprecedented housing crisis.
Read in Hansard ↗ Lead opposing voice Opposes
Maria Kovacic
Kovacic opposes the bill, calling it a badly timed rent freeze that would worsen housing shortages and push mum-and-dad investors out of the rental market.
Read in Hansard ↗ Lead voice Supports
Nick McKim
Nick McKim supports the bill and says the Greens are bringing it forward because the housing market has failed renters and mortgage holders.
Read in Hansard ↗ Lead voice Opposes
Catryna Bilyk
Bilyk says Labor will oppose the bill because freezing rents and interest rates would be a political stunt that gives false hope and undermines the Reserve Bank.
Read in Hansard ↗All speeches by bloc
Labor
1 speaker · 1 oppose
Labor
1 speaker · 1 oppose
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Catryna Bilyk ★ Bilyk says Labor will oppose the bill because freezing rents and interest rates would be a political stunt that gives false hope and undermines the Reserve Bank.
“In stark contrast to the responsible approach to housing and supply by the Albanese government, the Greens have proposed a bill to place a freeze on rent and interest rate increases. While this idea sounds like a quick and easy solution to the distress many tenants are facing, this proposal is nothing more than another cheap political stunt by the Greens. While we understand that many Australians are finding it tough to find an affordable place to rent and that interest rate rises are often a bitter pill to swallow for those with a mortgage, this government will not support policies which give false hope to Australians who are already feeling the considerable pinch of housing stress.”
Read the full speech in Hansard ↗
Coalition
2 speakers · 2 oppose
Coalition
2 speakers · 2 oppose
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Maria Kovacic ★ Kovacic opposes the bill, calling it a badly timed rent freeze that would worsen housing shortages and push mum-and-dad investors out of the rental market.
“I rise today to speak on the Freeze on Rent and Rate Increases Bill 2023, which is potentially one of the worst bills I have seen come before the Senate in my very short time here. It is policy on the run that will likely compound the problem that it is looking to solve.”
Read the full speech in Hansard ↗ -
Paul Scarr Scarr opposes the bill and argues the Greens' rent-control approach would reduce housing supply and make affordability worse in the long run.
“Rent control is not an effective way to improve affordability for renters”
Read the full speech in Hansard ↗
Greens
3 speakers · 4 contributions · 3 support
Greens
3 speakers · 4 contributions · 3 support
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Nick McKim ★ Nick McKim supports the bill and says the Greens are bringing it forward because the housing market has failed renters and mortgage holders.
“Well, do you know what? As I said earlier, someone has to stand up for renters in this place. Someone has to stand up for mortgage holders in this place. And it ain't going to be anyone if it's not the Greens. We proudly bring this legislation before the Senate, because the housing market has failed.”
Read the full speech in Hansard ↗ -
Mehreen Faruqi ★ 2 contributions Faruqi supports the bill and says it is a necessary federal response to the housing crisis, because it would freeze rent increases and use federal funding to push states and territories to adopt stronger renter protections.
Hansard records 2 separate contributions by Mehreen Faruqi on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Faruqi strongly supports the bill, saying it offers real action to freeze rent and interest rate increases during an unprecedented housing crisis. She argues the government should intervene to protect renters and mortgage holders instead of letting banks, developers and landlords keep profiting.
“This Bill is proposing real action for renters and mortgage holders in a time of an unprecedented housing crisis. It is possible. It is not a fanciful idea to ask for more.”
Read this contribution in Hansard ↗Second reading speech
Faruqi supports the bill and says it is a necessary federal response to the housing crisis, because it would freeze rent increases and use federal funding to push states and territories to adopt stronger renter protections. She argues the government already has the power to act and should use it to stop unaffordable rent rises and interest rate pressure.
“This bill responds to the need for national leadership to address the rental and housing crisis by seeking to establish a national freeze on rent increases and on interest rate increases.”
Read this contribution in Hansard ↗ -
Janet Rice Rice supports the bill and says it is needed to stop skyrocketing rents by freezing rents now and then capping future increases.
“This bill, obviously, is addressing one of those—the need for rent freezes and then ongoing rents caps to address that issue of those skyrocketing rents—so that people aren't having to put up with and cope with those rents. I'll tell you the story of Jo, who shared that, since moving to Queensland, she has had to move seven times, costing her over $14,000. She told the committee:”
Read the full speech in Hansard ↗
Record
Full record
- Status
- Not Proceeding -- Collected from the APH bill page.
- Originating house
- Senate
- 19 June 2023
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 19 June 2023
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
- 18 Oct 2023
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
- 21 July 2025
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.