How, if at all, will he ensure that the $374.3 million that the government is reprioritising from Income-Related Rent Subsidies to increase the Accommodation Supplement won’t be captured by landlords increasing their rents?

Answer

The Accommodation Supplement is designed to mitigate landlord capture, including through the maximum rate of subsidy and co-payment. Research from Motu Economic and Public Policy and Research investigating previous increases to the Accommodation Supplement maxima (in 2005 and 2018) found limited landlord capture. Results from the study of the 2018 changes suggest the increases did not lead to a notable increase in rents charged to tenants receiving the Accommodation Supplement, and that 90 percent of the increase resulted in increases to after housing cost incomes for recipients.