They should tax people renting. They skip all the taxes, no CGT, no land tax, no stamp duty.
If you tax people renting then what is the incentive for people to invest in property? That would not be good for the economy.
Anyway, I sense that RBA does not really have any other option or strategy than to continue to lift the cash rate until inflation slows. In my notes from yesterday announcements, I thought it was interesting that inflation on goods is slowing but is still very high on services. We are a very services driven society now - cleaners, consulting services, uber etc - and in the 2020's we are now purchasing goods and a service at the same time ie. purchasing online, menulog/uber eats etc. If you notice they have been really pushing people to get back into the office and reduce working from home. This is more than likely a strategy to help slow down inflation in the services sector.
I read a comment above that interest rates were way too low, i definitely agree with that. First home buyers jumped into the market too soon, I don't blame them for jumping at the opportunity, but they essentially used their full borrowing capacity and were servicing at record low rates - was never going to last. I think the housing market is going to suffer immensely over the next 2 years. We will see more and more people vacating, repossessions, which will put more stress on the rental market. Very interesting times ahead.
