The impact of the GST on the private rental market - how long is that piece of string?

Under the GST legislation, rents in the private rental market will not attract a GST directly. Rather, rents will be input taxed, meaning that whilst landlords will not have to charge GST, neither will they be able to claim credits for those costs that incur GST such as maintenance, real estate fees etc. The additional costs to the landlord of investing in their rental property will presumably be passed on to tenants. The Commonwealth Government has predicted that this will result in private rental increases of approximately 2.3%. [Introduction]