In a move that has sparked both bewilderment and outrage, Australia is reportedly considering a controversial policy to tax unused bedrooms in private homes — a proposal aimed at “freeing up housing supply” in the midst of a worsening affordability crisis.
The idea, which surfaced in policy discussions this week, would see homeowners penalised for keeping spare rooms empty, with officials arguing that such a measure could nudge older Australians and property-rich families to either downsize or rent out underutilised space. In theory, this would increase the number of homes available in a market where prices and rents continue to soar.
Mounting Criticism
But the suggestion has drawn sharp criticism from across the political spectrum, with commentators describing it as an absurd overreach of government authority.
“What’s next — taxing people for not eating enough at dinner?” one opposition MP quipped, noting that such a policy would invade the most private corners of household life.
Housing experts are also sceptical. While the intention to tackle supply shortages is clear, critics argue that the proposal distracts from deeper structural problems, including a lack of new construction, planning bottlenecks, and rising construction costs.
“Empty bedrooms are not the root cause of the crisis,” said one urban economist. “Blaming families for having a guest room won’t magically fix affordability.”
Public Mocks Proposal
The public response has been swift and cutting. Social media platforms erupted with mockery, with Australians posting photos of their spare rooms alongside sarcastic captions such as, “For lease: one cat’s bedroom.” Memes comparing the policy to Orwellian overreach quickly went viral, with some warning that it sets a dangerous precedent of micromanagement in private life.
Underlying the humour, however, is genuine concern. For many, the bedroom tax debate reflects a growing frustration with a government seemingly more focused on tinkering with citizens’ lifestyles than addressing systemic policy failures.
“It’s a distraction tactic,” one Sydney resident said. “They can’t fix housing, so now they’re peering into our bedrooms.”
Nothing ‘Finalised’ Yet
The Anthony Albanese-led Labour government, for its part, insists the idea is still in early consultation stages and has not been finalised. Yet even the mere prospect has touched a nerve, underscoring the fine line between housing policy and intrusion into personal liberty.
If pursued, the tax would represent one of the most radical — and contentious — attempts yet by a Western government to reshape housing markets through direct intervention inside private homes.
(With inputs from IBNS)
