The ACT's cap on rent increases only works when it is backed by a significant increase to the number of properties for lease, Chief Minister Andrew Barr has said.
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Mr Barr said he would not recommend the scheme to states and territories that did not have the pathway to significantly increase housing supply.
"That pathway is passing the Housing Australia Future Fund bill through the Senate," Mr Barr said.
Mr Barr said the ACT needed the finance to proceed with building more new housing in the ACT after a decade of a federal Coalition government standing in the way.
"We now have the Commonwealth government at the table working with the states and territories," he said.
Mr Barr on Monday said the territory's current scheme was effective regulation.
"The ACT's rent capping arrangements are a safeguard effectively against the most egregious forms of rental increase. But they only work when accompanied by a very significant supply-side increase," Mr Barr said.
"So we've seen the share of housing in the ACT that is available for rent increased from about 26 per cent 10 years ago to 31 per cent."
The ACT's rent increase cap prevents landlords hiking rent by more than 10 per cent above the increase in the consumer price index.
Mr Barr last week described the federal Greens' decision to effectively block Labor's housing fund bill as "naive" and on Monday renewed his calls for it to pass.
A vote on the bill has been delayed to October after the Coalition and the Greens voted together to stop debate on Labor's bill.
The fund would invest $10 billion and spend the returns on social and affordable housing.
But the Greens want the Commonwealth to spend $1 billion each year to encourage the states and territories to implement a two-year rent freeze and ongoing rent caps.
ACT Attorney-General and Greens leader Shane Rattenbury, who is responsible for tenancy laws in the territory, has called on the ACT to introduce a rent freeze.
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Mr Barr in May then called on the Greens, which governs in coalition with ACT Labor, to contribute to a cabinet process to consider how a rent freeze would work in the ACT.
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Jasper Lindell
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
