A Sydney woman says she is paying $800 a week for a one-bedroom apartment infested with mould, a situation she attributes to Australian Prime Minister Anthony Albanese's tax policies.
Finance commentator Jessica Amir shared footage of fungus spreading through her apartment's wardrobe, explaining that she must empty and clean her clothes every two weeks to prevent damage. "We have a mould infestation problem," Amir stated in a video, showing overflowing moisture absorbers. "Whether you're renting by choice, for lifestyle reasons or out of necessity, nobody should be paying $800 a week to live with a mould problem."
Amir stated that her real estate agent advised her to be "vigilant" with cleaning and to use a dehumidifier and fan, which she has done. "I have to clean my mould-infested apartment’s walls once a week. I have to do the same with the bathroom too," she said. Amir plans to move out of the apartment, expressing frustration with the living conditions. "I think a lot of people are going to start questioning why they should stay in Sydney, or even Australia for that matter," she added.
Amir believes that Prime Minister Albanese's proposed reforms to capital gains tax and negative gearing are contributing to the housing crisis and driving up rents. Under legislation passed following the May 2026 Federal Budget, the 50% capital gains tax discount is set to be replaced from July 1, 2027, and negative gearing for residential property investments will be limited to new builds. Existing investments are largely grandfathered.
She argued that these reforms will result in fewer investment properties, leading to a decrease in available rental properties and consequently higher rents for tenants. "It’s going to get a lot worse after the capital gains tax changes because there are going to be fewer investment properties, meaning fewer rental properties available to rent," Amir said.
Property investor Arjun Paliwal, who owns 18 investment properties valued at approximately $20 million, reported that rents have already increased sharply following the housing policy announcements in the Federal Budget. Paliwal's latest purchase, a three-bedroom home in Perth bought for $1.1 million in May, was leased for $900 a week, exceeding his initial expectation of $750 to $800 a week, due to high demand.
"The Budget was meant to make housing more affordable, but we're already seeing the opposite in the rental market," Paliwal commented. "The people who rent these homes generally can't afford to buy a $1.1 million house. If investors sell, renters don't suddenly become homeowners, they're forced to compete for fewer rental properties."
The government contends that the reforms are intended to improve housing affordability by stimulating investment in new housing supply and assisting more Australians in entering the property market. According to the Westpac Home Ownership Report, 55% of Australians believe the recent changes to negative gearing and capital gains tax will positively impact aspiring homebuyers, with 70% of Gen Z expressing optimism about the policy changes.