A
ussie landlords are raking in billions of dollars in rent each year, but a significant portion is being sent overseas. According to the Australian Taxation Office, more than $50 billion was collected in rent nationwide, with around $2.08 billion going abroad - about 3.7% of the total.

    The biggest drop in investor numbers in 25 years has raised concerns about the impact on tenants and the economy. NSW led the way with over $22.8 billion in rental revenue, followed by Victoria at $12.78 billion and Queensland at $8.74 billion. However, international investors are taking a significant share of this revenue.

    Property Investment Professionals of Australia chair Lachlan Vidler attributed the decline to government policy changes, particularly around property taxes and tenancy requirements. He said many investors were forced out by rising costs and uncertainty, rather than being long-term investors cashing out after decades.

    The loss of landlords is estimated to result in about $175 million in lost rental revenue for the government to tax, equating to a more than $50 million hit to government coffers at a 30% tax rate. Rental vacancy rates are at critical lows across the nation, and Vidler expects landlord numbers to continue decreasing.

    The impact of investor numbers varies by state, with NSW landlords relying heavily on negative gearing to support their expenses, resulting in net losses exceeding $3 billion per year. In contrast, South Australia's landlords have reported significant profits, while Victorian investors are grappling with massive losses due to state government policies.

    Experts disagree about the implications of the decline in investor numbers, with some arguing it could lead to higher home ownership rates and others warning of a potential housing crisis.