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Rental Laws

Published on: October 2024

Record: HANSARD-1323879322-146508

Rental Laws

Ms ANNA WATSON (Shellharbour) (14:30:58):

As part of its comprehensive reform package, the Minns Labor Government is delivering on its promise to build a fairer rental market for the people of New South Wales. Renting has become the norm for around one-third of New South Wales' population, with more people now renting than ever before. That is evident in my electorate of Shellharbour, where almost 27 per cent of households are renting. Unfortunately, the rental market is also tougher than it has been in decades. Vacancy rates are at an historic low and rent prices for houses have surged by more than 7 per cent over the past year alone.

What has become clear, through listening to the community, is that renters are often left with limited and costly ways to simply pay their rent. Many have told us that they are being charged additional fees and surcharges, making an already stressful situation even harder. That is why the Minns Labor Government is taking action. As part of our rental reforms, we will require property owners and agents to offer free ways for tenants to pay their rent such as bank transfers or Centrepay, which is a free Commonwealth Government service. The Minns Labor Government has provided $6.6 million to develop the first portable rental bonds scheme in the nation. That scheme will make it simpler for renters when moving by allowing eligible tenants to digitally transfer their existing rental bond to their new rental home. It will involve an upgrade of the rental bonds system and this is anticipated to be completed in 2025. But that is not all.

After careful consultation with stakeholders, including more than 16,000 submissions from the public, we are also making it easier for renters to have pets in their homes. As it stands, the surrender of one in five animals to the RSPCA in New South Wales is due to concerns about rental applications. Worse, domestic violence organisations report that many victim-survivors feel trapped in dangerous homes because they fear they will not be able to find housing with their pets, let alone afford the rent. We believe that renters deserve better—much better—and that is why this reform will make it simpler to have pets in rentals. While tenants will still need to apply, landlords will no longer be able to refuse without good reason. The reforms will bring New South Wales in line with other States and ensure that renters have the freedom to live with their pets, without unnecessary barriers. It is about fairness and respect, and creating homes, not just houses.

Additionally, the bill builds on key reforms that have already been announced. We are ending no-grounds evictions, ensuring that both periodic and fixed-term leases can only be ended for valid reasons, providing greater certainty for renters and property owners alike. We are also cracking down on unnecessary fees. Renters will no longer be charged for background checks when applying for a rental property. This work displays our commitment to modernising the rental market with the goal of getting the balance right between renters and property owners. Our reforms are about ensuring that renters in New South Wales have the stability, transparency and fairness that they deserve. That is a modern, forward-thinking approach to rental laws that reflects the needs of today's market. We are working closely with everyone—from renters to landlords to animal welfare organisations—to ensure that the changes succeed and create a more equitable rental experience for all.

Ms JENNY LEONG (Newtown) (14:35:17):

By leave: I withdraw my amendment.

Ms DONNA DAVIS (Parramatta) (14:35:56):

I support the motion on rental laws moved by the member for South Coast, knowing the Minns Labor Government is making some of the biggest changes in a decade to protect over 2.2 million renters across our great State. I note the Government's proposed rental reforms and commend the Government on providing cost-of-living relief to renters in Parramatta, where 57 per cent of residents are renters, which is why I am so focused on delivering certainty to the rental market. In March 2023, Labor went to the election with a promise to the people of New South Wales that we would make renting fairer for tenants and owners.

With the largest rental market in Australia, we understand how significant it is that the Government strikes a fair balance between the rights and responsibilities of tenants and landlords. On 24 July this year the Premier announced that the Labor Government would introduce the biggest rental reforms in a decade, modernising the rental market in New South Wales. On 15 October, we delivered on our promise, introducing the Residential Tenancies Amendment Bill 2024 to this place. Let me make it crystal clear: These comprehensive reforms are only possible under a Labor government. The previous Liberal-Nationals Government failed to act on the issue and renters have been living with the fallout as a result.

Sure, the Liberals and Nationals had an election commitment to end no-grounds evictions; but it was for periodic leases only. That would have created two classes of renters: one protected from the threat of no-grounds evictions and one without that protection. Australians pride themselves on being a classless society and the Minns Labor Government would not stand for that inequity. It would have resulted in perverse outcomes, such as renters being pushed onto rolling short-term leases. We have seen that happen in other jurisdictions. Only one party can be relied upon: the Labor Party. We have a strong leader and the resolve to make historic changes to the rental system by ending no-grounds evictions across all lease types. The bill will introduce the most significant changes to rental laws since the current Residential Tenancies Act became law in 2010.

The bill is the next step in fulfilling the Labor Government's commitment to making renting fairer. The Minns Labor Government will cap rent increases to one per year for periodic and fixed‑term leases, closing a loophole in the existing legislation. The changes will make renting in New South Wales fairer, simpler and more certain. The bill will align New South Wales laws with the National Cabinet's Better Deal for Renters. It will end no-grounds evictions to give renters and owners more clarity by introducing reasonable and sensible reasons to end a fixed‑term or periodic lease. It will ensure renters have a free way to pay their rent, including bank transfer and the Commonwealth Government's Centrepay, and will protect renters from having to pay for background checks when they apply for a property.

When it comes to the family cavoodle, we have their back too, because pets are another member of the family—just like my Poppy—and we should not have to prioritise a place to live over our pet. Under our rental reforms, tenants can apply to keep a pet and landlords may only decline the application on certain grounds. Landlords must respond to the application within 21 days with their grounds for refusal, and an appeal is available to renters via the NSW Civil and Administrative Tribunal. These proposed changes follow extensive and detailed discussions with renter advocates, industry stakeholders, tenancy experts, a parliamentary inquiry and 16,000 submissions and survey responses to public consultation. The Minns Labor Government is a government of action. We listen, consider and take action to get the balance right. We will introduce a fairer rental system in New South Wales to support the 2.2 million renters across every single electorate in this State.

Ms FELICITY WILSON (North Shore) (14:40:04):

By leave: Once again we are debating a self‑congratulatory motion moved by the Minns Labor Government. It is wonderful that the Government has finally put a rental reform package on the table, because when the member for South Coast lodged her notice of motion in August the Government had not yet introduced its bill. Indeed, when we began debating the motion in the last sitting week of Parliament there was no Government bill before the House. Labor came to the election in 2023 promising to make a difference for renters across New South Wales, but it prevaricated for 18 months before introducing a bill to this House for consideration.

Members opposite love to pat themselves on the back about these reforms, but they have done nothing to date to help renters in this State. Members have only now seen the Government's bill, and once again Government members are already congratulating themselves. So far no changes have been made to end no-grounds evictions. As a renter myself, along with many millions of other people across the State, I know firsthand there are challenges with renting. In the time that Labor has wasted not addressing those challenges, there has been an 11 per cent increase in the cost of rent across New South Wales, and there is a 1 per cent vacancy rate for people who need to find a home for themselves.

The DEPUTY SPEAKER (Ms Sonia Hornery):

Government members will cease interjecting.

Ms FELICITY WILSON:

Some 46.5 per cent of people who live in my electorate are renters, so it is right for me to speak on their behalf on this crucial issue. When we add in the number of landlords in my electorate, the overwhelming majority of my community cares about renters and the way that properties will be dealt with under the legislation the Government has finally introduced. In my local community the average median weekly rent increase in 2023 was 15 per cent, which is above the statewide increase. That reflects my experience as a renter. Across my own community, housing stress is playing a significant role. We frequently talk about the cost‑of‑living crisis. A big proportion of people's household budgets go towards housing, whether that is mortgages—and the continuing increases in interest rates play a role in that—rents or associated costs such as electricity and insurance. All of that is putting added pressure on people.

Housing stress is described as when more than 30 per cent of a household's budget is spent on rent. The latest Australian Bureau of Statistics data shows that more than 27 per cent of my community is experiencing housing stress. We cannot shy away from the fact that 18 months after the Labor Government was elected, it is only now taking action. I welcome the bill the Government has introduced. I look forward to hearing the detailed debate on the legislation. But we cannot wait any longer for this issue to be addressed in New South Wales. I encourage all members in this House to act quickly to ensure that renters have a seat at the table.

Ms MARYANNE STUART (Heathcote) (14:43:00):

By leave: I thank the member for South Coast for introducing the motion. This is a very important issue and the member is a very strong advocate and champion for her community. The member for North Shore was a member of the former Government that was in power for 12 long years. During that time it did nothing to address the housing crisis, yet now she is pleading for something to be done. Prior to recently acquiring a house, I rented a home for a family of four for 17 years. I am proud to be able to stand with the Minns Labor Government and talk about not just what we want to do but what we have already done in our short 18 months in office. In Heathcote around 20 per cent of dwellings are rentals, so I speak on behalf of my constituency and as a very proud member of the Minns Labor Government.

This month the Government introduced a suite of new measures to make renting fairer. The rental package includes ending no-grounds evictions, which is close to a lot of renters' hearts. Renters need security, permanency and peace of mind. The Government will establish a set of reasonable grounds on which to end a lease, giving greater certainty to renters. Property owners will now need a reason to end a tendency for both periodic and fixed‑term leases. The Government will ban fees for background checks so renters will no longer be charged when applying for a rental property. The reforms also include ensuring that tenants have a free way to pay rent. Property owners and agents will be required to offer free ways to pay rent, such as by bank transfer or the Commonwealth Government's Centrepay.

We are going to make it easier for tenants to have pets in rentals as well introduce a fairer and more streamlined application process. The important changes do not stop there; they come alongside other key initiatives such as the portable bonds scheme. The Government is investing $6.6 million to develop and deliver the nation's first portable rental bonds scheme. This means eligible renters can move homes and digitally transfer their existing bond with them. We have also established Rent Check, a free website that renters can use to check whether the rent they are being asked to pay is fair. A NSW Rental Taskforce will be established within NSW Fair Trading. We are investing $8.4 million in that taskforce so investigators, inspectors and support teams can help renters and act on serious breaches of rental laws.

Reforming the rental system is a vital step to rebuilding our housing system in New South Wales, which was left in a state of crisis by the former Government. These reforms are about fairness. Whether it is making it easier to have pets or ending no-grounds evictions, we are delivering a better, more balanced rental system. We want to ensure that the growing number of renters in our State have the stability and transparency they deserve. We are providing them with more options and greater certainty. I congratulate Minister Rose Jackson in the other place, Minister Chanthivong and Minister Scully. We are not just talking about rental reforms; we are delivering them and putting them in place. I say to the people of New South Wales to watch this space.

Ms LIZA BUTLER (South Coast) (14:47:17):

In reply: I thank all members who contributed to debate on the motion not only today but also in the last sitting week. While I thank the member for Willoughby for his contribution to debate, I was astounded by his statements. Since when has the Liberal Party been a friend of renters in New South Wales? When in government, the Opposition had 12 long years to deliver reforms for the approximately 33 per cent, or one-third, of the population of people in New South Wales who rent. What did members of the former Government do for renters? They sold more than $3 billion worth of social housing and did not replace it. How does that help renters? It doesn't!

Mr Tim James:

That's not true.

Ms LIZA BUTLER:The Guardian

It was in in April 2022. The former Government loved nothing more than privatising everything it touched. We all know that when you privatise services like power, housing and home care—and the list goes on—the costs increase. I thank the member for Granville for clearly pointing out the concrete steps the Minns Labor Government has undertaken to lay the foundations for a fairer rental environment in New South Wales.

The DEPUTY SPEAKER (Ms Sonia Hornery):

Order! The member for South Coast will be heard in silence.

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