Published on: October 2024
Record: HANSARD-1323879322-146844
Residential Tenancies Amendment Bill 2024
Second Reading Debate
Debate resumed from 15 October 2024.
Mr TIM JAMES (Willoughby) (18:05:41):
I lead for the Opposition in debate on the Residential Tenancies Amendment Bill 2024. The Opposition will not move any amendments to the bill in this Chamber, as many of the bill's provisions are common ground. The Opposition will address its amendments in the other place. At the same time, it is conscious that the reforms have taken a long time to come—indeed, far too long under Labor—and the bill fails to fundamentally address the biggest issue by far in the rental market in New South Wales, which is the shortage of housing supply.
Over Labor's more than a year in power, rents in Greater Sydney have increased by more than 13 per cent. The proportion of rental housing accessible to a median income earner in New South Wales has dropped from 35 per cent in 2022-23 to 28 per cent in 2023-24. In stark contrast, the Liberal-Nationals Government achieved a record high of 48 per cent in 2021. New South Wales renters have been let down by a government that has delayed delivering the bulk of its rental reform commitments until now. While the bill introduces several provisions designed to offer clarity and protection to tenants, it does nothing to address the most significant issue facing the rental market today: supply. The bill does nothing to alleviate the pressures caused by supply constraints. The one million renting households in New South Wales deserve better from the Minns Labor Government.
This Parliament has heard that there are around 30,000 no-grounds evictions each year. Overall, most evictions—about 60 per cent—are made with grounds. Property owners do not evict a tenant for no reason. Indeed, it costs them to be without a tenant, and it costs them financially to evict a tenant. In reality, only about 3 per cent of the market, per year, is affected by no-grounds evictions. Yet the bill introduces a significant shift in tenancy laws by proposing to abolish no-grounds evictions for both fixed-term and periodic leases. Under the bill, property owners would now be required to provide a prescribed reason for terminating a tenancy. The prescribed grounds include a breach of the tenancy agreement; sale of the premises; significant renovation, repairs or demolition; the tenant is no longer eligible, such as in affordable housing schemes, student accommodation or key worker accommodation; the premises will no longer be used as rented residential premises; the property owner or their family will reside at the premises; and the premises is tied to employment and the employment has been terminated.
While the changes provide tenants with greater security, they introduce new complexities for property investors who rely on flexibility to manage their assets. Limiting property owners' ability to terminate tenancies could disincentivise investment in the rental market, particularly when we desperately need more housing stock. We have seen those issues arise in other jurisdictions where similar policies have been introduced, including in other States of Australia and also across the ditch in New Zealand. Without a careful balance, we risk worsening the rental crisis rather than alleviating it.
For those reasons and more, we will move to amend the bill in the upper House to uphold what is a fixed‑term tenancy to reflect certainty of contract and to recognise property rights. A fixed‑term tenancy is a contract agreed between two parties entering into it eyes wide open with clarity and certainty. They have agreed on terms, including a time frame, and a legislated, prescribed reason should not be a strict legal obligation to end such a mutually binding contract. The Opposition will say more in the other place on the issue. The bill introduces limitations on rent increases, mandating that rent can only be increased once every 12 months for both fixed‑term and periodic leases. While that provides predictability for tenants, it does not solve the core issue of affordability. Rent prices are rising because demand outstrips supply and, unless the Government makes a concerted effort to increase housing stock, rents will continue to climb. In that sense, the bill offers a temporary fix to a long‑term problem that can only be solved by addressing supply shortages.
The bill also includes provisions on pet ownership, allowing tenants to request permission to keep pets, with property owners required to respond within 21 days. While allowing pets can no doubt improve tenants' quality of life, we must ensure that the new rules do not place an undue burden on property owners. Property maintenance and suitability for pet ownership are concerns, especially where strata by‑laws or other regulations may apply. Overall though, to be fair, the feedback from stakeholders is that a reasonable balance has been found in relation to pets in rentals. I recognise that. It has to be pointed out that it has taken a long time. This issue was the subject of deep, wide and successful consultation over two years ago when we were in government. It was only because we lost government that we could not act upon the need for reform. I also recognise and thank the RSPCA for its inputs on the provisions.
Another aspect of the bill is the provision to enable a rental bond rollover scheme, which seeks to ease the financial strain on tenants moving from one property to another. While the Opposition supports the initiative in principle and indeed took it to the last election, we remain cautious about the practical implementation of such a scheme and want to carefully consider the detail of that long‑promised reform. It is taking too long. The bill also introduces reforms aimed at reducing financial burdens on tenants. Those are broadly supported. It mandates that tenants must have access to at least one fee‑free method of paying rent, such as through bank transfer or Centrepay, ensuring that tenants are not penalised with additional costs just for making basic rent payments. An additional reform prohibits landlords and agents from charging tenants for background checks during the application process. It eliminates unnecessary financial hurdles for prospective renters and promotes a more equitable system where tenants are not burdened with extra fees. Together, those measures offer practical solutions to ease financial pressures on tenants and improve the overall fairness of the rental market.
We have consulted widely with stakeholders across the rental and housing sectors in relation to the bill, including with the Tenants' Union and many other tenants groups, the Real Estate Institute of New South Wales, the Property Council, the Student Accommodation Council, the Property Investors Council of Australia, the Property Owners Association of NSW and the Property Investment Professionals of Australia. I have also been engaged with many more stakeholders, particularly on the tenants side of the market, through two select committees of the Legislative Assembly in the past year. I thank all stakeholders who have been engaged in the process. Some stakeholders have raised particular concerns. The Student Accommodation Council, for instance, highlighted challenges faced in fixed‑term leases, especially given their alignment with academic schedules. They are seeking a carve‑out that recognises the unique nature of purpose-built student accommodation. That is, in our view, a sensible proposition because purpose‑built student accommodation is different in many ways. It serves a big strategic sector for Australia and is worthy of a targeted legislative approach.
As we consider the scope of the bill, I reiterate that housing supply is the key driver of the rental crisis. The Opposition remains committed to tackling the issue with a focus on supply‑side reforms. We had outlined several initiatives aimed at addressing rental pressures in the lead‑up to the last election, including moving to a reasonable grounds model for evictions during periodic leases, extending notice periods for the end of fixed‑term leases, and introducing a new optional standard lease agreement for three- and five-year terms to promote longer term leasing and relationships—something that, importantly, should be explored and incentivised in policy terms. We also put forward a rental bond rollover scheme, as well as strengthening privacy protections around tenants' information.
Additionally, we had acted to prohibit solicited rent bidding, implemented the First Home Buyer Choice initiative and committed to further planning reforms to increase housing supply. Had those measures been fully implemented and maintained, they would have delivered real change to the housing and rental market. And, unlike those opposite, we would not have needed nearly two years to act. Our policies—particularly, for instance, the longer term lease models, which we see used well and widely in Europe—would have benefited both property owners and tenants. Yet the Minns Labor Government has missed that particular opportunity.
Lastly, it is concerning that the Minns Labor Government has failed to stand up in any way, shape or form to the Albanese Government to address immigration and associated inflationary pressures affecting New South Wales. As the Premier himself has stated, 37 per cent of the 500,000 migrants coming into Australia settle in New South Wales—obviously over a certain time frame—adding further strain to an already struggling housing market. It is a net population growth of more than 15,000 people per month. Despite that increase in population, the number of rental properties available in New South Wales is already declining. Data from the New South Wales Rental Bond Board shows that, as at 28 February this year, there were 969,441 rental bonds held. That had decreased to 968,274 by 31 August 2024.
That highlights a worrying trend: an increasing population alongside a decreasing number of available rental properties, placing further pressure on an already tight housing market. That is why getting the balance of reforms right is so important in this delicate market. I thank the Minister and his team for their efforts in crafting the bill and engaging with me and my team. We appreciate it. I again thank all stakeholders engaged in the bill, including every one of those I mentioned earlier and have engaged with over the past 18 months or so. I also acknowledge former Minister Victor Dominello, who did much in this space, together with then Premier Dominic Perrottet, who worked hard to improve the rental market and, in many instances, laid the groundwork for the reforms before us today. I once again foreshadow that the Coalition will have more to say and do on the bill in the Legislative Council. I commend the bill to the House.
Mr TIM CRAKANTHORP (Newcastle) (18:17:20):
I speak in debate on the Residential Tenancies Amendment Bill 2024. I commend Minister Chanthivong for introducing it in its current form. It is a great piece of legislation that will have a large effect on the people of Newcastle. In my electorate, nearly four out of every 10 people rent: 39.8 per cent of my constituents are renters. Statewide the average is just below one in three at 36.2 per cent. Most days I hear concerns from constituents about the difficulties of finding a private tenancy in the Hunter. Just last week Newcastle welcomed the NSW Rental Commissioner, Trina Jones, to talk with Hunter renters and to listen to their experiences and concerns. The forum had a huge turnout, highlighting that residential tenancy issues continue to remain a large concern among my constituents.
The forum was run in conjunction with the Hunter Tenants Advice and Advocacy Service, which has also been a strong advocate for the changes contained in the bill. It has provided much‑needed legal advice and support to Novocastrians over the past decade, including providing free telephone advice, information, advocacy and, where appropriate, representation in the NSW Civil and Administrative Tribunal for people renting privately through a landlord or real estate agent. The Hunter Tenants Advice and Advocacy Service has always been steadfast in challenging current tenancy legislation, including eradicating no‑grounds evictions and supporting the introduction of legislation to make it easier to keep pets in rental homes and to make renting more fair, simple and affordable.
I acknowledge CEO Nicole Grgas and the great team at the Hunter Tenants Advice and Advocacy Service for the incredible work they do in the sector. Nicole is a tireless advocate who has been pushing hard for these reforms for many years. It gives me great pleasure to speak in favour of the bill on behalf of my constituents. As I have said before, just under one-third of the population of New South Wales rents. Renting is becoming more common. It is also a longer term option for the people of this State. But the rental market is the toughest that renters have seen for decades. Demand for housing has far exceeded supply. The vacancy rate across New South Wales is approximately 1.5 per cent, which is much lower than the 3 per cent vacancy rate that is considered healthy and balanced.
Renters also have to deal with some of the highest rental prices we have seen to date, amid other cost‑of‑living pressures. The New South Wales Government wants to make renters' lives easier by delivering a modern and balanced rental system. The bill is the next step in fulfilling the New South Wales Government's election commitment to make renting in New South Wales fairer by ending no-grounds evictions and making it easier for renters to keep pets. The bill makes many other changes, including limiting how often rent can be increased, banning renters from being asked to pay for background checks, and ensuring renters have a free and convenient way to pay their rent.
The changes in the bill were informed by the Government's 2023 "improving rental laws" consultation, which received a whopping 16,000 survey responses and 400 submissions from renters, landlords and industry bodies. Ending no-grounds evictions is the foundational reform in the bill. It lays the groundwork for a fair and balanced rental market. Currently, landlords can end a lease without reason—commonly known as a no‑grounds eviction—which leaves renters facing sudden and sometimes frequent moves, and makes it difficult to forge strong links to a community. Without stability and security, it is hard for renters to make a house feel like a home. Renters may be hesitant to assert their rights or raise concerns with their landlord in fear that requesting a repair or addressing a safety issue could result in an eviction.
Overall, the current protections for renters in the Act do not operate effectively. Around 60 per cent of leases in New South Wales are fixed term, while around 40 per cent are periodic. The bill significantly improves the lives of many renters in New South Wales by ending no-grounds evictions for both fixed-term and periodic leases. It also establishes a specific list of new grounds for ending a tenancy in addition to the current grounds, which include breach of agreement and actual sale of property. The new termination grounds are fair and reasonable. They respect a landlord's rights in relation to their property, while also acknowledging that the property is a renter's home. Some grounds have specific requirements to prevent unnecessary terminations. For example, if a landlord cites renovation or repair as a ground to terminate, that work must be scheduled to start within two months of the termination. That will help to ensure leases are not terminated for renovations that are a long way off.
Other supporting measures that guard against the misuse of those termination provisions include re‑letting exclusion periods, evidence requirements, offence provisions and new notice periods. Ending no‑grounds evictions and introducing supporting measures will give renters more certainty so they can raise issues without fear of eviction, while also acknowledging a landlord's need to adapt to changing personal and financial circumstances. One concern that I frequently hear from renters about no-grounds evictions relates to pets. Last week I received an email from a constituent who works in the animal rescue and shelter sector. He said that his shelter has become increasingly bombarded with pets primarily because people in Newcastle cannot find rental properties that allow pets. Allowing people to have pets in rentals will have a huge impact on many Novocastrians who are struggling to find a rental for themselves and their beloved pets.
Pets bring many benefits. They can help renters turn their rental property into a home. The Government made an election commitment to make it easier for renters to keep pets in rental homes. Currently, landlords in New South Wales can refuse permission for any pet in a rental property without reason or justification, unless the pet is an assistance animal. Under the proposed changes, renters must still seek their landlord's consent to keep a pet, but landlords can only refuse that request on specific grounds. The bill will introduce a straightforward application process for renters. A renter must seek a landlord's consent to keep a pet, and a landlord is required to respond within 21 days to either grant consent with or without conditions, or to refuse consent on one or more of the prescribed grounds for refusal.
Both the renter's request and the landlord's response must be provided through a prescribed form, which will make the process simpler for both parties and prevent unnecessary information from being shared. The bill provides a list of reasons for a landlord refusing a renter's request. The bill allows the landlord to consent to a renter keeping a pet, subject to reasonable conditions. A renter may appeal a landlord's refusal or conditions if they believe the reason is invalid or the conditions are unreasonable. The bill broadens the current protection against rent increases more than once in a 12-month period to all types of leases, including fixed-term leases of fewer than two years, and when there is a change in the lease type. Currently, rent increases can be made more than once in 12 months on fixed-term leases of fewer than two years.
The bill ensures that renters can pay their rent conveniently and without additional cost. It requires landlords to offer renters the choice of using the electronic bank transfer and Centrepay to pay their rent, and enables the payment method chosen by the renter. The penalty for breach of the requirement to offer a free payment method will be increased. The bill prohibits the charging of fees or passing on of costs incurred by the landlord or agent to the renter. Landlords are not prevented from accepting other forms of payment as long as the renter and landlord both agree for rent to be paid that way. The bill clarifies that renters cannot be asked to pay for background checks, which is a very important clarification.
The bill appoints the NSW Rental Commissioner as a permanent member of the Rental Bond Board. That appointment aligns with the commissioner's role of advising the Government on rental issues and working with both government and community to protect renters and rebalance the rental market. In conclusion, the bill delivers on the New South Wales Government's key election commitments and introduces other changes to make renting in New South Wales fairer. It puts an end to no-grounds evictions, makes it easier for renters to keep pets, and introduces measures to make renting more simple, affordable and secure. The reforms in the bill are sensible and balanced. They will improve the lives of renters across New South Wales and provide clarity and certainty for landlords as well. Overall, the reforms will enable renters to create more stable homes, which will, in turn, strengthen our wonderful communities.
TEMPORARY SPEAKER (Ms Stephanie Di Pasqua):
Before I call member for Sydney, I welcome to the Parliament Sammy Coure, son of the member for Oatley.
Mr ALEX GREENWICH (Sydney) (18:27:32):
I also welcome Sammy to the Parliament, which is making renting fairer for when he grows up—that's exciting! The Sydney electorate has the highest proportion of renters in this State, and my constituents strongly welcome the Residential Tenancies Amendment Bill 2024. Safe, secure and affordable housing is a fundamental human right and crucial to ensuring that people can engage in education, employment, relationships and community life. With more people renting and fewer of them able to afford the asking prices in an increasingly competitive private rental market, large numbers of people across the State are ending up in housing stress, unable to afford the basics, let alone a home, and under the constant threat of homelessness. I continue to hear from many constituents about massive rent rises that have made small, modest homes unaffordable for median income earners.
The enormous social housing waiting list means that social housing cannot provide the safety net we need. Thousands of people are already living in unsafe conditions, whether they are couch surfing, sleeping in cars or overcrowded properties, or living on the street. Too much focus in the policy response to the housing affordability crisis has been on housing supply. Certainly, low supply contributes to rising prices, but building new homes will take time and relief is needed now. There are also many factors outside government control that make relying solely on increases in private supply risky. They include labour and product shortages, developer profits favouring land banking, the staged release of housing supply and the prioritisation of luxury developments.
What governments can do now is make renting fairer and more secure. I strongly welcome the Residential Tenancies Amendment Bill, which will remove the option for no-ground evictions and make it harder for landlords to refuse companion animals. No-ground evictions give landlords a reliable free pass to punish tenants who pursue their rights. Landlords can impose excessive rent increases or refuse to do basic repairs and maintenance and then evict any tenant who complains, under the guise of "no reason". No-ground evictions provide a loophole for landlords who do not want to exercise their obligations and responsibilities. There is always a reason for evicting a tenant, and the bill provides a comprehensive list of lawful reasons, including that a close family member intends to live in the property, that renovations or repairs are required, and any other reason prescribed by regulation.
Because the inner city is close to jobs, services and entertainment, my constituents pay among the highest rents in the country, many for small homes, including studio and one-bedroom apartments with no balconies, no private laundry facilities and no lift access. When they receive rent increases, in excess of $200 per week in many cases, they are often too afraid to challenge or make a counteroffer because of fear of eviction. Many live in substandard homes because they are scared to ask for basic maintenance. I share tenants' advocates' concern that potential loopholes remain in the legislation.
For example, landlords could pretend to offer a property for sale or pretend to undertake renovations, evict tenants under those grounds, and wait out the exclusion period before re‑letting a property for a higher price. We need to monitor the situation closely. I will move an amendment at a later stage to provide for data collection on all evictions and the reasons provided. I understand that The Greens will move an amendment, which I will support, to create a statutory review to assess whether, under these new provisions, landlords have only valid reasons to end residential tenancies and to have a wider look at the Act.
The bill also aims to make it easier for renters to have companion animals by prescribing the grounds for a landlord to lawfully refuse an animal. Companion animals pose no more risk to property than humans do. Damage and disturbance can happen with or without animals. It all comes down to whether a tenant is responsible. I live in a rental property. For 12 years my companion animal Max lived with my husband and me, until he recently passed away. I was grateful that the property owners allowed us to have Max for that entire time. He was a beautiful rescued whippet fox terrier who will always be in our hearts.
I welcome the bill's aims and recognition of the importance of animals. However, I am not convinced that the changes are enough to ensure renters can keep companion animals. The default position is not that tenants can keep companion animals, and the onus will be on tenants to challenge landlords' refusals through the tribunal. Tenants will be waiting for hearings when they need to know whether they can move into properties. Women escaping domestic violence with companion animals will be less secure in making applications. This could force tenants to abandon beloved animals when they move into new homes. Companion animals, such as my dog Max, provide love and companionship, especially to people who live alone, and have physical and mental health benefits that contribute to significant budget savings for the Government. Our laws should support people who want to have companion animals.
I think that the provisions around pets in rental properties will need to be reviewed by the Government down the track. I worked closely with the former Government on provisions to allow companion animals in strata buildings. It is not an easy thing to do. I acknowledge that the Government is working hard to achieve it in this bill. I am just concerned that the provisions in the bill may set up an adversarial arrangement. However, I ask that the Minister in reply commit to, when we look at the reform of the application process, looking at what avenues can be made through the application process to make sure that that is a process friendly to companion animals.
Notwithstanding that, I strongly welcome the bill and look forward to a better deal for renters. Further reform is needed to make renting fairer. Rental laws currently prohibit unreasonable rent rises, but we have seen huge rental increases that in no way could be considered reasonable become common across the State. The law needs to provide greater clarity around what can and cannot be considered reasonable. The Australian Capital Territory has linked reasonable rent increases to the consumer price index, with any increase above this requiring the approval of its tribunal. Importantly, we need to increase the supply of affordable housing. We need to build 5,000 new social housing homes a year for the next 10 years just to house everyone on the waiting list. We need to set targets for affordable housing, with stronger targets for government redevelopment projects. We need to establish definitions for "affordable housing", including essential worker housing, and set funded pathways to build what is needed.
We need the Government to respond to the review of the Boarding Houses Act, which the former Government failed to do. That failure and the failure to provide protections for residents of boarding houses has resulted in the residents of the boarding house in Selwyn Street, Paddington being delivered with eviction notices. These men in their sixties and seventies have lived for decades in this boarding house and, because there are not the protections for residents of boarding houses that there are in other areas of the Residential Tenancies Act and because there are not the planning controls to protect boarding houses from redevelopment, may very well face eviction sooner rather than later. I have been working with the Minister for Housing and the Minister for Better Regulation and Fair Trading, who visited the residents of the Selwyn Street boarding house last week with me, to further advocate in this regard.
It is important when we talk about rental reform and housing affordability reform that we do not forget the important role that boarding houses play in that mix and that we have protections for boarding house tenants. We need to be realistic. The rental market in New South Wales is currently a landlord's market. The bill provides us with an opportunity to help restore balance and fairness. I thank the Minister, his staff and the crossbench for their constructive work on these reforms. I acknowledge the work of the Minister and the long-term advocacy of the member for Newtown and my crossbench colleagues in this regard. I commend the bill to the House.
Ms JENNY AITCHISON (MaitlandMinister for Regional Transport and Roads) (18:37:00):
— I speak in support of this pivotal piece of legislation that addresses the pressing need of renters across our State, the Residential Tenancies Amendment Bill 2024. The bill marks a significant step forward in reforming our rental market and balancing the rights and responsibilities of renters and landlords, while fostering a fair and equitable housing environment for all. I want to respond to the member for Willoughby's comments regarding the time taken to get here and why this bill does not address supply issues. The Minister for Housing, the Minister for Planning and Public Spaces, and the Minister for Better Regulation and Fair Trading have been working and leading a lot of work on supply issues. The former Government over 12 years flogged off so much Crown land and so many public assets that could have been used for housing, and failed to use it for housing.
Even in my electorate, we had a real drama because we had social housing properties going into such disrepair that they had to be condemned. I remember getting a call at seven o'clock on a Saturday night from someone in a government-owned house whose roof was collapsing because they had had termites. When I went to see them, they could not get through to any providers to help them to get emergency accommodation. This 60‑year-old woman and her mother, in her eighties, were told that they may have to wait three weeks, as the black storm clouds over their house started to descend and the roof was collapsing because of the termite damage that had been there for some time.
Of course I did not care it was Saturday night at seven o'clock. I went out there. We got onto the office of the former Minister, Pru Goward, who had put renters out to community housing so the Government did not have to deal directly with these problems and could put everything at arm's length. We had those people in a hotel that night and we had the SES tarping the roof. But the story does not end there. Did the former Government come in with funds to get the house fixed? No. It left the house in disrepair. When the Government finally let the tenants in to get their goods and belongings, the house had been damaged by vandals because it had been unliveable for some time and the former Government did not do the work to fix it. For anyone on the Opposition side of the House, excluding the member for Newtown, to dare lecture this Government on housing supply, they would have to have so much front, it is disgusting.
Mr Tim James:
Look at the numbers. Look at the data.
Ms JENNY AITCHISON:
I am looking at the lived experience in my community. I gave the member for Willoughby the opportunity to speak without interruption, so he should hush for a little while. The house of another woman in my electorate was also being eaten by termites. The former Government, as her landlord, told her it was her problem, which it clearly is not. It is disgusting. With her three daughters in a three-bedroom house she was faced with the possibility of not having anywhere to live. When we finally got Housing NSW to inspect the house, the floor was about to collapse under the bathroom.
They had already seen the termite evidence in the kitchen. The woman could not use her stove. She had metres of electrical cords so she could plug into a power point in order to cook food for the children. It was disgraceful. Eventually I got the predecessors of Homes NSW to visit and I received a very good lecture that I have taken very much to heart. The sentiment of the lecture was that—under the former Government—people who live in public housing should not expect to have a palace and should be grateful for whatever the then Government might deign to let them live in, whatever hovel or slum, in whatever state of disrepair. It showed an absolutely disgraceful lack of disrespect.
We took Housing NSW to look at one of the homes that was "eminently suitable", according to Housing New South Wales. I needed a bucket to pick up their jaw as it dropped as they went into the house of a woman who told us about her experience with domestic violence and how a mark on a wall was where she had been bashed. She was too scared to tell Housing NSW, because she would have been evicted. The domestic violence went on and on in the house over 20 years. They then said to her, "What do you do?" I could see in their face that their expectation was that she would say, "I don't have a job. I've got no income." She proudly told them that she was the assistant manager of a local fast food franchise—one of the working poor who, under the former Government, did not get a fair go. The attitude of the former Government was disgusting and totally out of touch with the lived experience of people in this State, particularly in regional areas like my electorate where it failed to invest in public housing.
I note that, after a lot of advocacy, some investments were made, but it should not be necessary to go to a local member to get basic human rights to live in a house that is not falling down. It was absolutely disgraceful. This bill does not seek to look after infrastructure or supply of housing, as the member for Willoughby said, but will implement vital reforms to enhance protections for renters, such as termination of no‑grounds evictions, making it easier for renters to keep pets, limiting the frequency of rent increases, banning the practice of charging tenants for background checks, and ensuring that methods of paying rent are accessible and cost-free, among other reforms. These changes represent a commitment to the values of fairness, security, and dignity for all members of our community, specifically for those who rent. The Government knows that some people will say the bill does not go far enough, and I understand that. But we are in a housing crisis and we must ensure mechanisms are in place so we do not lose landlords out of the market.
We have reached an important point where we are doing better to support renters. This bill goes a long way toward that. One of the most significant reforms is the elimination of no‑grounds eviction for both fixed and periodic leases. Under the new legislation, landlords must provide a valid reason for terminating a tenancy, and so they should. It cannot be that tenants are evicted after years of renting. Again I speak to situations in my electorate. One day I phoned the local real estate agent because someone came to my electorate office and said, "Jenny, I have tried 120 properties to get somewhere to rent and I can't do it." I spoke to a wonderful real estate agent, Alexandra Haggarty, who does a lot of work in this space. I asked, "Is this real? Is there a black mark against this person's name that they have gone to 120 properties to get a house, and they can't get it?" She said, "No, that's true, Jenny. That is where our market is." That is because we did not have any investment by members opposite in public housing and we do not have enough other stock.
What has happened to these people is they may have been living in a house for five or 10 years and they have been great tenants, and they get evicted because their landlord can see that they can put the price up, or a property agent tells the landlord they should do that. Then they say, "If they won't pay it, go and get someone else who will." There are people in my community who are paying so much money in rent, and they cannot afford it. That leads to horrific circumstances such as people living in caravans outside their children's houses because they cannot find somewhere affordable to live, and being always at risk.
We know that there are people in our communities who are only one bad circumstance away from losing their housing. In the current rental market, if someone in the family has a very serious illness, even a terminal illness, the rest of the family is potentially left homeless because they have had to leave work and have lost their income. That is not a good place to be. Across society, all of us are at risk of that in the current housing environment, with tenants at the whim of landlords who are not doing the right thing. I do not want to say any more about the bill. I know there are many members who want to join in the debate, and I do not want to ask for an extension of time. I just want to say thank you to the Minister and to the Minns Labor Government for introducing the bill. I also thank all those who support it. Let us not have any more rubbish about things that did not happen for the last 12 years and people talking about timing.
Mr MATT CROSS (Davidson) (18:47:02):
I am proud to support the Residential Tenancies Amendment Bill 2024. This is a really good day for renters around New South Wales, in particular for the 6,032 renters who call the Davidson electorate home. They make up 19.7 per cent of local residents. Although the percentage of renters in the Davidson electorate is not one of the highest in New South Wales, that is a substantial number of people. I know someone who is watching Parliament right now is my wife, Gess. It is great to have an audience. Hi, Gess.
Ms Jenny Leong:
I will say hello to Leo from the Tenants' Union, too.
Mr MATT CROSS:
Yes, and hello to Leo, too. We are two of the people who are renters in the Davidson electorate. My wife and I are renters in Lindfield. This bill means quite a lot to the people in the Davidson electorate, including Gess and me. Leadership is about solving problems. I believe this bill is doing exactly that. For anyone who is familiar with the work of adaptive leadership led by Professor Ron Heifetz at the Kennedy school, he talks about adaptive leadership and technical leadership. I will speak first about what this bill means in relation to adaptive leadership. The bill brings into focus the importance of respect. People who rent should be respected. There have been times—including those in the stories of members who preceded me in the debate—when there has been a complete of respect. My liberalism is very much that I believe in the freedom of the individual and I believe in the best in people. I believe that people are well intentioned. Sadly, renters who are extremely well intentioned now get, and have in the past received, some very negative experiences, which is a shame.
Speaking of my liberalism, when I was elected to this place I spoke about Sir Robert Gordon Menzies' "forgotten people". The forgotten people were people, like my family, who were not wealthy but not poor. They were middle class, the silent Australians. In thinking about the world we live in, I remarked that I believed renters were the new forgotten people. Menzies clearly spoke about the importance of the forgotten people but also the importance of the home and home ownership, particularly "homes material, homes human, and homes spiritual". It is very much part of the Liberal Party's values and DNA to support both home ownership and people who are renters. Certainly my vision, as a member of Parliament, is to make sure that we increase home ownership because it is so important to the fabric of today's society.
However, many people are renters either by choice or because of challenges. My wife and I are renters by choice but for many people who rent it is a challenge. We need to help them to have a strong foundation in the home to bring out the best in them. The great thing about the bill is that it accepts the role of technology in 2024, which I think is something we all endorse. Speaking further about the importance of the home, I will talk about the importance of the family. People think families are made up of humans only but they are also made up of pets. The member for Sydney previously mentioned the importance of pets and how they are a part of his family. Pets are such an important part of the fabric of the home, and I am glad the bill accepts that and brings us into 2024.
Turning to the technical aspects of the bill, the main reform that will certainly be welcomed by renters is the eviction provisions. A landlord can only evict a renter for a valid reason. Sadly, in the past people were not given good or valid reasons so this is a very welcome part of the bill. Secondly, penalties will apply to landlords or their agents who serve unfair or incorrect termination notices. I am all for making sure that people are held accountable. In fact, it was a Liberal government under Sir Robert Askin in the 1960s and 1970s that brought in consumer protections for the first time in New South Wales. So, again, liberal values protect people. Thirdly, renters can move out early after receiving a termination notice under certain conditions, including commonsense things such as renovations and property sales. But it is important there is a valid reason and this bill makes that clear.
The fourth reform is pet‑friendly rental laws so that renters can seek permission to keep a pet and, if a landlord refuses, it must be for a valid reason. I think that is something we all welcome. The fifth reform is in relation to rental payments. Every two weeks I have to pay my rent—Gessika certainly reminds me to make sure I do so. It is a welcome reform that rents can be increased only once every 12 months because renters need certainty, and the bill offers that. The worst-case scenario is continued interest rate rises but they should not be passed on to the renter every time; rents should be fixed, so having just one increase in a 12‑month period is welcome. The next reform is that renters will have a free and easy way to pay rent. Again, that is common sense. The final important reform is that renters cannot be charged for background checks when applying for a rental property, which is certainly welcome. The other important technology reform is rental bond rollovers. It is amazing that it has taken so long for us to get to this point, but the change is certainly welcome.
I thank a few people because in politics I do not think we thank people enough. Sometimes we concentrate too much on the negative and not enough on the positive. I mentioned previously my disappointment about how long the bill has taken to arrive—18 months—but it is finally here and I thank the Government for bringing it to the House, particularly the Minister for Better Regulation and Fair Trading. I thank the shadow Minister, the member for Willoughby. I hear he spent much time working through the bill with stakeholders. As previously mentioned, I thank Leo Patterson Ross for his work on the bill. I have met with Leo and I will continue to talk to him about these important issues. It is great that we are coming together as a Parliament to solve these issues. Leadership is about solving problems and today is a day that the Parliament can be proud of.
Finally, I often speak to student groups, as many members do. Students of all ages ask about the work we do and some students question whether you can have an impact by becoming a politician or working in the public service. In the first speech I gave to this House I spoke about renters. I hoped that my speech would start a conversation. Many members in this place, including the member for Newtown, have been talking about this issue for a long time. It is all about starting a conversation. In my speech I quoted the iconic Darryl Kerrigan, who said, "It's not a house; it's a home." I also spoke about Menzies' forgotten people address in which he talked about "homes material, homes human, and homes spiritual", and I end this speech with another quote from Sir Robert Gordon Menzies. He said:
The home is the foundation of sanity and sobriety … its health determines the health of society as a whole.
I believe this bill will strengthen society and strengthen individuals. The most important thing about this bill is it ensures that individuals can reach their full potential. I am very proud to support the bill.
Ms TRISH DOYLE (Blue Mountains) (18:56:29):
I am pleased to contribute to debate on the Residential Tenancies Amendment Bill 2024. I thank the member for Davidson for making some important and sensible comments and not bringing political views into the debate. I thank him for simply acknowledging those who have contributed to the bill and those who will benefit from it. The bill will introduce the most significant changes to rental laws in over a decade. It demonstrates the Minns Labor Government's commitment to making renting fairer by ending no‑grounds evictions for fixed-term and periodic leases and making it easier for renters to keep pets. The bill will also limit how often rent can be increased, ban renters from being asked to pay for background checks and ensure that renters have a free and convenient way to pay their rent. As we all know, around one-third of the New South Wales population are renters and renting is becoming a longer term option, or a necessity, for more people of all ages and in all life circumstances.
For many years renters have lacked the stability and the security they have craved to enable them to make a rental property a home. For many years I was a renter and endured considerable difficulties as a sole parent with two small children on a casual teacher's wage. I was often treated unfairly; in fact, I felt that I was often treated as a second-class citizen. I have a number of horror stories but I will not share them today. I acknowledge the member for Maitland, who outlined some of the homes she has seen and some of the terror and distress that renters often experience when their rental properties cannot be a home. I have lived experience of being a housing commission tenant. I was born into it and lived there as a child and later as an adult when my life was turned upside down. Those experiences have driven my work and my advocacy in this place. Today is an important day for us all to speak to our convictions, to our compassion and to acknowledge the fairer and safer lives that we want tenants to have.
Stable and affordable housing is an absolute necessity. People cannot lead happy and fulfilling lives if they do not know where they are going to be living from one day to the next. That certainly echoes many of the stories that constituents of mine have told me. I am sure that is the case for many members of this place. In New South Wales more people are renting than ever before, as has been mentioned many times. Around one-third of the population lives in rentals. The current rental market in New South Wales is the toughest that renters have seen for decades, with historically low vacancy rates and median rent prices for houses increasing by nearly 10 per cent over the past 12 months. Many people, especially young people, are unable to get their foot on the housing ladder and believe that they never will. If they do not have the option to own their own home, they ought to have access to stable rental accommodation, which the bill tries to address.
The existing power imbalance between renters and landlords leaves many tenants feeling powerless and vulnerable. As I have said, I have lived experience of that, challenging real estate agents who are judgemental and challenging landowners who believe in different classes of citizens. Tenants are often forced to accept unreasonable terms because they lack housing options. If a renter has directly experienced no‑grounds evictions or if they live under the constant threat of sudden and unexpected eviction, that has a profound impact on their mental health. That absolutely forms many of the stories that my constituents have come to me with. It is not just about having a roof over your head; there are often multiple and complex layers of other issues that come with the lack of secure housing.
At present, many renters are afraid to raise issues with their landlords out of fear that they will be evicted. Consequently, rental properties are allowed to fall into a state of disrepair, as many members have spoken about, and the tenant is forced to live in squalid conditions. There are too many of those people, but I acknowledge that. The bill takes a step towards addressing those issues. In the current housing crisis, a sudden and unexpected eviction leaves many people, including families and young children, homeless or at risk of homelessness. The housing and homelessness services in my electorate tell me that they are struggling to keep pace with demand and are distressed by it.
Renters who are forced to move regularly cannot forge strong links to their community and often need to move away from schools, family and friends. I recall being told about an abandoned car in a car park near a railway station in the Blue Mountains. I left a note on the windscreen offering to help whoever owned the car because apparently someone was coming back each week. They had run out of money for registration and could not keep up their rental payments. One of the parents was sick, so they had taken the whole family "on a holiday" into the national park and were living under the shelter near a cave. They thought that their life had fallen apart. I hate to think what their next thoughts were, but they believed that they would be moved away from the community that they loved and the area that offered them security, care, friends and their school.
It is fantastic that the bill appoints the Rental Commissioner as a permanent member of the Rental Bond Board. That aligns with the commissioner's role in advising government on rental issues and working to protect renters and rebalance the rental market. The bill creates a modern, fairer, safer rental system in New South Wales. Over the past 18 months, the Government has taken significant steps to provide greater balance in the rental market. It appointed the State's first Rental Commissioner, Ms Trina Jones, who is a tireless advocate for renters. The Government has passed all sorts of legislation around rent bidding and the Portable Rental Bonds Scheme. That has been a game changer for renters, who will be able to save thousands of dollars. The Government has invested $8.4 million in a rental taskforce as part of this year's budget, with inspectors and support teams to help renters and to act on serious breaches of rental laws.
The Government has also launched the new, free Rent Check website to make it easier for renters to check whether the rent they are being asked to pay is fair. The reforms in the bill are critical to begin improving the lives of the more than two million people across the State who rent. They provide clarity and certainty for everyone, particularly renters who want to create stable homes. I look forward to seeing further Government bills introduced to the Parliament to implement the remainder of its commitments and continue the important work on the rental market.
I acknowledge the work of the Legislative Assembly Committee on Community Services, its staff and all of the members, that undertook important work in the inquiry into no-grounds evictions. I recognise and thank Leo Patterson Ross, the Tenants' Union of NSW and the Blue Mountains Tenants Advice and Advocacy Service, particularly Ben Connor and the team, for their extraordinary work. I thank the many tenants who have shared their stories with me. They have played a helpful and significant part in delivering the reform package in the bill. I express gratitude for the important work undertaken by many in this place and beyond, including the Minister for Housing, the Minister for Planning and Public Spaces, the Minister for Building and their teams. I thank the member for Newtown for her tireless advocacy on the issue. I am proud to be in the Chamber with her tonight. The Government is modernising the rental system for the people of New South Wales. I am proud to be a member of this Government. I commend the bill to the House.
Ms JENNY LEONG (Newtown) (19:06:36):
It is my absolute pleasure to speak on behalf of The Greens in debate on the Residential Tenancies Amendment Bill 2024. I say at the outset that The Greens enthusiastically support the comprehensive end to no-grounds evictions in New South Wales contained in the bill. The bill seeks to outlaw unfair no-grounds evictions in New South Wales and require all residential landlords to provide a reason, supported with evidence, when evicting someone. The pathway to delivering on the reform started over a decade ago and was built by tenants' advocates, housing experts, grassroots groups, activists, legal centres, unions, renters and, indeed, The Greens. More than 28,000 renters in New South Wales are booted from their homes each year without a reason. For many renters, fear of a no-grounds eviction is enough to prevent them from requesting basic maintenance or repairs, forcing them to live in mould-ridden homes or in properties that fail to meet their accessibility requirements.
The bill is a chance to take a massive step toward ensuring that renters in New South Wales have not only the security and stability but also the dignity and safety that they deserve. In addition to ending no‑grounds evictions, the bill requires landlords to offer tenants a free and convenient way to pay rent; limits the frequency of rent increases for all lease types to no more than one every 12 months; appoints the NSW Rental Commissioner to the Rental Bond Board; and clarifies that limits apply to the amounts a prospective tenant can be required to pay before a residential tenancy agreement begins. The Greens wholly support those changes. The bill also establishes an application process for renters who wish to keep a pet, which I will address in greater detail shortly.
Before I turn to the detail of the bill, I foreshadow that The Greens will move a number of amendments to close potential loopholes pertaining to specific grounds for eviction; mitigate against the loss of rental homes to the short-term rental market; strengthen provisions around pets to ensure that tenants do not bear the administrative burden; and require data collection and a statutory review of the Act in five years. I will speak to the amendments during the consideration in detail stage.
The most significant reform in the bill is the removal of unfair no-grounds eviction provisions and their replacement with specific grounds on which a termination can be issued. The bill removes sections 84 and 85 of the Residential Tenancies Act, which prevent renters in New South Wales from exercising their rights under the Act. Those provisions stop renters from fighting rent increases, compel them to pay for maintenance when it should be the landlords who cough up and prevent them from requesting critical repairs, all out of fear that they will be kicked out. As Dr Chris Martin from the City Futures Research Centre told the Legislative Assembly Select Committee on the Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024:
No-grounds reform is the single most important tenancy law reform that the NSW Parliament could make today. It goes to the single most unsatisfactory aspect of the current experience of renting: its insecurity. It is also the reform on which other improvements in the renting experience depend.
New subdivision 1 of the bill sets out an exhaustive list of reasons—in addition to non-payment of rent, serious damage by the tenant or other occupant, or use of the rental premises for illegal purposes, which are already in the Act—that a landlord may evict a tenant. They are a breach of a tenancy agreement; the actual or proposed sale of the premises; the demolition of or significant renovations or repairs to the premises; a tenant no longer being eligible for a specific housing scheme, such as affordable housing; and the landlord or their family residing in the premises. We are particularly pleased that new section 84 makes it clear that specific grounds are needed to terminate both fixed-term and periodic tenancies.
Following the review of the Act and legislative changes in 2017, both the Liberals under Victor Dominello and Matt Kean and Labor under Luke Foley—if members remember him—signalled that they were considering ending no-grounds evictions. Since then, there has been much back and forth about the necessary extent of this reform. The Greens and, to its credit, Labor—in a private member's bill introduced by the then shadow Minister, the member for Granville, and an announcement made in the lead-up to the March 2023 election—have always maintained that the practice must be banned for both fixed-term and periodic tenancies. Meanwhile, the Coalition has argued that landlords should be able to evict people without a reason at the end of a fixed-term agreement. In Victoria reforms allowing no-grounds evictions at the end of the first fixed-term agreement have only incentivised increased rental churn, with landlords moving tenants onto shorter fixed-term agreements to preserve their right to arbitrary evictions.
The inquiry into the private member's bill to comprehensively end no-grounds evictions that I had the privilege of chairing earlier this year heard overwhelming evidence that reforms must apply to both fixed and periodic tenancies. Shelter NSW highlighted that more than 70 per cent of no-grounds evictions in New South Wales are issued at the end of a fixed-term lease and warned that both the Queensland and Victorian models "leave renters open to bad-faith evictions". It is wonderful that a comprehensive ban is reflected in this bill. I acknowledge both Minister Chanthivong and his team and the Premier and his team for their willingness to listen to the experts, advocates and millions of renters in this State about the need for this comprehensive reform.
The Greens are concerned with two specific grounds on which termination notices can be issued in subdivision 1 of the bill. As foreshadowed, The Greens will move amendments to address those concerns. First, we do not believe the proposed sale of a premise should be included in the list of specific grounds. I will speak in more detail during the consideration in detail stage about the concerns housing experts and advocates have raised with that provision. We are also concerned that new section 87F, which relates to renovations or repairs, leaves the door open for discretion in determining what repairs are considered significant enough for a landlord to use this ground for eviction. We understand that this detail will be provided in the regulations, but we are seeking clarity from the Minister about the kinds of parameters that may be used to determine whether something is "significant". We have reservations about passing this legislation without knowing the details.
Similarly, The Greens seek an assurance from the Minister in his speech in reply that new section 87F will provide that tenants who have requested significant repairs, for example for the replacement of a mouldy roof, cannot be evicted on this ground if a rectification order is not already in effect. It is essential also that the New South Wales Labor Government provides an assurance that any tenant who would be evicted under the proposed new sections pertaining to eligibility for transitional housing, affordable housing or student housing cannot be evicted into homelessness. Clause 9 of the bill pertains to pets. The Greens believe when it comes to pets, renters should have the same rights as their landlords—if a landlord who moves into their investment property is able to have a pet, a renter in the same property should also be able to.
Our rental system should be animal inclusive by default, not least because we know this is an area of policy that significantly overlaps with efforts to eliminate domestic and family violence risks. As the Minister said in his second reading speech, "pets form part of the modern family". According to Domestic Violence NSW, 93 per cent of domestic and family violence workers said that the lack of animal-inclusive rental housing is a barrier to support for people with animals who are experiencing violence. While proposed division 8 creates a process for people who are already in a rental property to request landlord permission to keep a pet, it does nothing for people who already have a pet who are seeking to move into a new rental property. New sections 73D, 73E and 73F require a landlord to provide a written response to an application by a tenant to have a pet within 21 days of receipt, prescribe the only grounds on which a landlord can refuse to give consent, and outline conditions that a landlord may be able to impose on consent for a tenant to keep a pet.
Extension of time
Let me be clear: Unlike the no-grounds evictions reforms in this bill, the pet provision is far from the game changer required for lives to be saved and pets to be included as part of renters' families. New section 41 closes a loophole that allows rent to be increased more than once in a 12-month period for fixed-term leases that are shorter than two years. The Greens welcome this light form of rent control and encourage Labor to keep heading in that direction. We recognise that unlimited rent increases are a sad and unjust reality. The reform does not go far enough. This provision protects tenants who are already in a property from unlimited rent increases, but it does not prevent rents for a single property going up multiple times in a 12-month period if, for example, multiple tenants occupy the same property in successive three or six-month leases. []
While The Greens do not intend to move amendments to the bill regarding rent freezes and rent caps, I put on the record that the only thing stopping unlimited rent increases being imposed on the two million renters in New South Wales is the Labor Government. I give my commitment that once these reforms are passed, The Greens will look at ways to ensure that no-one is forced to live in housing stress by paying more than 30 per cent of their income on rent, and that no-one is evicted into homelessness. Ending no-grounds evictions took us a decade, but maybe we can get rent controls in place in half that time. I acknowledge the tireless efforts and truly visionary policy work of the many people who have been part of delivering this reform. I remember sitting in a Newtown campaign meeting in 2014 as the newly preselected candidate for Newtown discussing the possibility of taking up the fight for renters' rights directly to the greedy real estate agents, dodgy landlords and big property investors.
Around that table a decade ago, shaping the initiative that would be a priority for me and the Newtown electorate office for an entire decade, sat some very wise heads, friends and political allies, including then Marrickville councillor and now City of Sydney Councillor Sylvie Ellsmore, Emma Bacon, Maiy Azize, Ben Spies-Butcher, Mark Riboldi, Rafi Alam, Rob Shield and newly elected Newcastle Councillor Joel Pringle. There were hundreds of other key people involved in that first Newtown Greens campaign and I express gratitude to them all. I thank also the many past and present renters who have been a part of the decade-long campaign in the Newtown electorate office. I thank Dan, Cathy, Lydia, Mithra, Kaitlyn, Asha, Chandi and Anna and our current team of Luc, Dani, Donny, Eleanor and Patricia, who I believe is still ticking over amendments in her head as she sits at the back of the Chamber.
This policy priority did not emerge in a vacuum or as a result of what happened in Newtown and to The Greens; it is connected to the very real struggles faced by communities grappling with the sell-off of public housing, the insecurity of the private rental market and the failure of successive governments to address the housing crisis. Those issues added to the growing movement for change and brought together communities, organisations and activist circles we were all part of under the collective Make Renting Fair campaign.
I make special mention of those at the Tenants' Union of NSW with whom we have worked over the years: former Tenants' Union policy adviser Ned, who is now a valued part of the Balmain Greens team, and the current team of Leo, Jemima and Zuzia. I give a special shout-out and thanks to the teams at the NSW Council of Social Service, Everybody's Home and the community legal centres across the State, particularly the tenants advice and advocacy officers on the front line of supporting our community members when they face the reality of the eviction crisis.
If we succeed in ending unfair no-grounds evictions with the passage of this bill, it will be a testament to the power of effective, collective community campaigning as well as the willingness of some tenacious members of The Greens to not stop talking about no-grounds evictions. "One foot in Parliament and 1,000 feet on the streets" is how we have seen this change delivered. We must acknowledge that it is a New South Wales Labor government that has committed to working with this Parliament to bring about this reform. I am sorry to say that we could have got it done all those years ago if members of the Liberal Party, in their discussions, had listened to the Ministers who were responsible at that time.
So often it is said that The Greens push too hard and expect too much, and that we are a protest party—as if that were an insult. The Greens are a party that puts things on the agenda before they are acceptable or popular, before they are safe to support and the majority is on board. That is our role in progressive social change, a role I am honoured to continue to play both in this place and outside it. The no-grounds evictions ban in this bill will make a massive material difference to the lives of over two million renters in New South Wales and the many, many millions of renters to come. The Greens are so pleased that we are finally debating this critical reform in this Chamber. I absolutely commend the bill to the House.
Ms LIZA BUTLER (South Coast) (19:21:12):
I am pleased to make a short contribution to debate on the Residential Tenancies Amendment Bill 2024. I acknowledge the member for Newtown's contribution to the debate. How ecstatic she must be to finally see a Labor government supporting The Greens in getting this reform through Parliament! All members know that rental reform is an important issue that affects over two million people in New South Wales. More people than ever before are renting in our State. In fact, one-third of our population relies on a rental property to call home, and renting is becoming a more common and longer term option for the people of New South Wales. It was heartening to hear the member for Davidson's contribution to this debate about the importance of these reforms to renters such as him and his wife.
The New South Wales rental market, which consists of over one million properties, is the largest in Australia. With such a vast rental market, it is essential that we strike a fair balance between the rights and responsibilities both of tenants and landlords. Sadly, that balance has been missing, and renters in New South Wales now face challenges like never before. Vacancy rates across New South Wales are approximately 1½ per cent, which is much lower than the 3 per cent vacancy rate that is considered to provide a healthy and balanced rental market. Renters are also having to deal with some of the highest rental prices we have seen to date, amidst other cost‑of‑living pressures.
The New South Wales Government wants to make renters' lives easier by delivering a modern and balanced rental system. This bill is the next step in fulfilling the New South Wales Government's election commitment to make renting in New South Wales fairer, by ending no-grounds evictions, and make it easier for renters to keep pets. The bill also makes other changes, such as limiting how often rent can be increased, banning renters from being asked to pay for background checks and ensuring renters have a free and convenient way to pay their rent. The bill also broadens the current protection against rent increases more than once in a 12‑month period to all types of leases, including fixed‑term leases of less than two years and subsequent leases of a different type. Currently, leases of less than two years duration can increase rent more than once in 12 months.
The bill also ensures renters can pay their rent conveniently and without additional cost. It requires landlords to offer renters the choice of using electronic bank transfer and Centrepay to pay their rent, and to enable payment by the method chosen by the renter. The bill will also increase the penalty for a breach of the requirement to offer a fee‑free payment method. The bill prohibits a landlord or agent charging fees or passing on to the renter costs incurred. Landlords are not prevented from accepting other forms of payment so long as the renter and landlord both agree for rent to be paid that way. The bill appoints the NSW Rental Commissioner as a permanent member of the Rental Bond Board. That aligns with the commissioner's role of advising the Government on rental issues and working with both the Government and community to protect renters and rebalance the rental market.
In conclusion, the bill delivers the New South Wales Government's key election commitments and makes other changes to make renting in New South Wales fairer. The bill puts an end to no‑grounds evictions, makes it easier for renters to keep pets and introduces measures to make renting more simple, affordable and secure. The reforms in the bill are sensible and balanced. They will improve the lives of renters across New South Wales and provide clarity and certainty for landlords, too. The bill is a clear demonstration of the Minns Government's commitment to supporting the people of New South Wales. Overall, the reforms will enable renters to create stable homes and, in turn, strengthen our communities. I commend the bill to the House.
Ms FELICITY WILSON (North Shore) (19:25:40):
I contribute to debate on the Residential Tenancies Amendment Bill 2024. This bill has been a long time coming, and I am glad that today members finally debate reforms that will help renters across New South Wales. The reality of renting in New South Wales is challenging. In this State, and across Australia, we are facing a rental crisis. Many individuals and families find themselves in precarious living situations, facing constant worry about rent increases, evictions and substandard housing conditions. The ongoing pressures of the housing market have left many tenants feeling vulnerable and powerless.
In recent years we have seen alarming trends. Rising rents have outpaced wages. The number of households experiencing housing stress has increased, and a growing number of renters feel they have no choice but to accept unfavourable terms. We have a housing crisis in New South Wales. In fact, housing is the single largest cost‑of‑living issue facing the people of our State. More people are renting than ever before, around 33 per cent of the State's population, which is an increase of 17.6 per cent since 2016. In my North Shore electorate more than 46 per cent of voters are renters. I am a renter myself and know firsthand the challenges that many face. The issue is regularly raised with me by members of my community, so I have sought to ensure that in this place I speak on their behalf.
The bill will introduce reforms that will end no-grounds evictions to give renters and owners more clarity by introducing reasonable, sensible reasons to end a fixed‑term or periodic lease. It will make it easier to keep pets in rental properties, ensure that renters have a free way to pay their rent and protect renters from having to pay for background checks when they apply for a property. Many of those are commonsense reforms that will ease the burden on renters and ensure a fairer and simpler rental system in New South Wales, bringing us into line with other States and jurisdictions across Australia. Members of this House know that no-grounds evictions disproportionately impact vulnerable groups, such as low‑income renters, seniors and people with disabilities, who may already be facing barriers to accessing affordable housing. The reforms in the bill will provide renters with stability while ensuring that landlords who need to regain possession of their property are able to do so.
The bill aims to ensure that landlords may only evict tenants on the following specified grounds: a breach of a tenancy agreement; actual or proposed sale of the premises; significant renovation or repairs; demolition of the premises; the premises are part of an affordable housing scheme, transitional housing program or a scheme for students and the tenant is no longer eligible; the premises are required for key worker accommodation; the premises will no longer be used as a rented residential premises; the landlord or landlord's family is moving in to reside at the premises; or the premises are related to employment and the employment is terminated.
The bill also sets out the notice to be provided for each ground. For most new grounds, the following notice periods are provided. For those on fixed‑term agreements of six months or less, the termination notice period to tenants will be increased from 30 days to 60 days. For fixed‑term agreements of more than six months, the termination period will increase from 60 days to 90 days. For renters with periodic notice agreements, the notice period will be 90 days.
The issue of no-grounds evictions has been significant in my community and is raised with my regularly. Both major parties took the issue to the last election. I recognise that the Liberal team supports the legislation, I recognise the Labor Party in putting up the bill and I recognise The Greens who have been championing and putting forward their own legislation over a number of years to see this outcome. It is good that we finally have a united House to introduce reasonable grounds for evictions in New South Wales.
I turn now to pets in rentals. We know that at the moment many renters find it difficult to find properties in which they are allowed to bring their pets along. Organisations such as Animal Welfare League NSW outline that pet ownership improves emotional wellbeing, with the bond between owners and their pets being powerful. The correlation between pets and mental health is undeniable. According to the RSPCA, almost one in five animals that are surrendered in New South Wales have been surrendered due to concerns about rental applications, which is devastating. Domestic violence organisations have reported that a major barrier for victim-survivors getting out of dangerous homes is their concern about securing housing for them and their pet.
In my community in the Mosman local government area, which is one of the smaller local government areas but a very large suburb, there were 11,120 microchipped companion animals registered in 2023, which was a 23 per cent increase since 2019. In North Sydney, there were 17,026 microchipped animals registered in 2023, which was an increase of 11 per cent since 2019. It is safe to say from the data from the Office of Local Government that families in my community love their pets. That is a significant number of households with pets. The challenges people experience when trying to relocate, especially in a community like mine where half the electorate turns over in population every five years and is quite a transient community of people, mean we need to ensure there are homes for people and their loved family pets.
Currently, renters can only keep a pet if the landlord agrees, and landlords can refuse a renter's requests to get a pet during a tenancy without providing a reason. We can read into what happened during COVID, when it became incredibly important for people to have connection and companionship. If that cannot be done in the home that a person lives in, are they going to move out and find somewhere new or risk the home they live in by breaching their tenancy agreement and getting a pet? The proposed reforms will still require a renter to apply to have a pet in their home, but the changes will aim to make it easier and bring New South Wales into line with most other States where similar reforms have been undertaken.
While owners will no longer be able to refuse pets without any reason, they will be able to decline in certain specific situations. Those reasons are that keeping the animal at the residential premises would result in an unreasonable number of animals being kept at the premises; the premises is unsuitable for keeping the animal because the fencing is not appropriate, there is insufficient open space or the nature of the premises means the animal may not be kept at the premises humanely; keeping the animal at the residential premises is likely to cause damage that would cost more to reasonably repair than the amount of the rental bond for the premises; the landlord resides at the premises and does not want to live with a pet; keeping the pet would break another law, local council order, strata scheme by-law or community rule; or the tenant has not agreed to a reasonable condition proposed by the landlord.
Tenants will be able to make an application to apply to keep a pet on the premises and landlords will be obliged to respond to an application within 21 days. The 21-day time frame provides adequate time for the landlord's consideration and response. If a landlord does not respond within the 21-day time frame, consent is automatically assumed in order to prevent renters from waiting unnecessarily for a response. The changes will ensure that renters and families will be able to keep their furry friends as part of their families.
The bill also introduces a cap on rent increases. Current protections against multiple rent hikes do not apply to fixed term leases of less than two years or when there is a change in the type of lease, such as from periodic to fixed term. The bill will broaden the protection against rent increasing more than once in a 12-month period to all types of leases, including fixed-term leases of less than two years. Reforms in the bill will also ensure that tenants can no longer be asked to pay for background checks. Renting and moving are already a significant financial burden, and background checks put additional costs on renters without adding an additional benefit to them. The bill clarifies that the prohibition on being asked to pay for background checks applies to all prospective renters regardless of whether they eventually enter into a residential tenancy agreement.
The changes put forward by the Government have taken a long time to get to. We have spoken a lot about the time it has taken the Government to introduce them. I recognise a balance has to be made between the demands of renters and landlords and the challenges of the housing market across the State. While I believe we should have reached this point sooner, I welcome the legislation before the House today. It is disappointing that in the period since the election, rents have increased by 11 per cent across the State. The bill introduces reforms on issues faced by renters across our communities. Vacancy rates across the State are incredibly low; in my community it is about 1 per cent.
There is also more to do. We need to look at longer-term leases. A person has to have long-term security and stability in their home. We need to look at the way in which people can maybe make reasonable, renter‑friendly modifications to their home to ensure that it can be a long-term home for them, their families, their friends or the people they call that place home with. I do not want this to be the end of the reforms for renters. I want renters to now know that they have a voice, have support across the Parliament and can come to us with the issues that they want addressed. I welcome the Government's legislation today. I welcome them looking to do more. The reforms will make it fairer and easier for renters in New South Wales. I commend the bill to the House.
Ms JULIA FINN (Granville) (19:35:41):
I contribute to the debate on the Residential Tenancies Amendment Bill 2024, and I enthusiastically support the amendments to the Residential Tenancies Act in the bill. The amendments will end no-grounds terminations for fixed and periodic leases, make it easier for renters to keep pets and limit the frequency of rent increases to once in a 12-month period. They will ban tenants from being asked to pay for background checks and ensure free and accessible ways to pay rent. The bill has been a long time coming, and I commend Minister Chanthivong for bringing it forward. Last year, stakeholder consultation led by his department received over 16,000 survey responses and over 400 written submissions from a whole range of stakeholders, including renters, landlords, real estate agents and all sorts of people, such as the animal welfare sector, about the reforms that are needed to the Residential Tenancies Act.
In banning no-grounds evictions, the bill sets a really important and balanced approach that requires a landlord to give a reason when evicting a tenant. We need to have that balanced approach because in New South Wales three‑quarters of landlords own only one property. We are not often talking about large institutional investors. We are talking about people who often have all their eggs in one basket. We need to have a balanced system, but one that is also fair to people who are renting and who live with the constant stress of a possible eviction. A few months ago, the Tenants' Union conducted a survey and found that over 90 per cent of renters said the possibility of being forced to move without being given a reason was a source of anxiety for them and that over 80 per cent identified it as a serious source of anxiety. That is anxiety about the roof over their head, a basic human need. This is incredibly important legislation for both landlords and tenants.
The bill will end no-grounds evictions by requiring landlords to have a valid reason. The new valid reasons will include that the property is being sold or offered for sale with vacant possession, the property's usage will change, the landlord or a family member will move in, the property is to undergo significant renovation or repair, the property will be demolished, the tenancy is part of an employee or caretaker arrangement that has ended, the property is student accommodation and the renter is no longer a student, the renter is no longer eligible for a subsidised affordable accommodation program or transitional housing and the property is part of a New South Wales government key worker housing program and is needed to house a key worker.
The legislation will also include a ban on reletting a property within a certain period after termination for each ground to deter misuse of the termination grounds. Of course, the landlord can apply to the secretary for an exemption from the reletting ban if their circumstances have changed, but only if their circumstances have changed. This is incredibly important. We all know people who have been forced to move when they have been evicted without being given any reason. I remember having a discussion with a constituent who had made some complaints about maintenance, which the landlord refused to address. They took the matter to the NSW Civil and Administrative Tribunal, but in the meantime they were served with an eviction notice and forced to leave their home and find somewhere else to live, which ended up costing them a lot more money.
Around 30,000 people are evicted without grounds each year in New South Wales, which causes a huge amount of stress. We are not talking about a small number of people. While the bill is incredibly welcome, for 12 years the previous Government resisted ending no-grounds evictions, except during COVID. Going back through all my previous speaking notes about banning no-grounds evictions, I made the point when I introduced a private member's bill in 2021 that the previous Government introduced a temporary six-month tenancy moratorium through the COVID-19 Recovery Act 2021 that restricted landlords from evicting tenants due to rental arrears or any other type of no‑grounds eviction. It began on 27 March 2021 and lasted until 26 September 2021. When I introduced my private member's bill the previous Government refused to extend the moratorium or consider going further, despite the changes having been introduced in other jurisdictions.
While COVID was an incredibly challenging time and a lot of people lost work and struggled to pay their rent, we have been in a cost‑of‑living crisis for a number of years—pretty much since the end of COVID—and still the previous Government did not make these important changes. I am glad the Opposition supports the bill, even though it does not support a ban on evictions without giving a reason at the end of a periodic lease. This is a really important reform, whether they be periodic or fixed-term leases, because in other jurisdictions there has been a perverse incentive for shorter leases and evictions at end of the periodic leases to turn a property over and put rents up.
One other important measure in the bill is to make it easier for people to keep pets in rental properties. The bill requires a landlord to have grounds on which they can refuse to allow a tenant to keep a pet and limits them to those grounds, including when keeping an animal at a property would result in an unreasonable number of animals being there or when a property is unsuitable for keeping the animal and the animal would be likely to cause damage that would cost more to reasonably repair than the rental, as well as a number of other restrictions. I am concerned that the 21-day timeframe for an application is unreasonably long. I ask that this be monitored over the next few years ahead of the review. A landlord could turn this around in the same time it takes to turn around a normal rental application.
I want to talk a little bit about a dog I know called Malu, who is the best friend of my dog. Malu is an American staffy who lives in a rental property and whose owners recently moved from a unit to a house to give him more space. The previous landlord approved a photo of him as a little puppy but his owners did not tell their new landlords that he was now fully grown and had outgrown the unit. They had to apply to many properties before they could find one that would approve a dog. Giving landlords the leeway to take up to 21 days to come up with a reason to knock someone back is over the top. I do not think anyone would apply to keep a Clydesdale in a studio apartment. We are talking about responsible adults applying to keep their beloved pets in their rental property. Our pounds are full of animals who have been dumped by their families because they could not find a rental property that would allow them. Placing the onus on tenants to challenge a refusal will extend the process even longer and, in some ways, make it more stressful, even though it places the onus on landlords to at least consider a request in good faith and only knock it back on reasonable grounds.
In wrapping up, I thank the Tenants' Union and the Western Sydney Tenants' Service for their incredible advocacy for reforms to residential tenancies over the past decade. I also acknowledge the advocacy of a number of members of this place, including the member for Newtown from The Greens. This is a really important reform. The Government is striking an important balance between tenants and landlords that will make it easier for people to regard the house they lease as their home and not just an asset. I am glad the Opposition supports the bill, but to suggest that it does not address housing supply is ridiculous. The bill is about the Residential Tenancies Act. If Opposition members want to support increasing housing supply, they should get on board and support the Government's Transport Oriented Development Program and apologise for selling off 3,000 units of public housing when they were in government. Labor wants unfair evictions to end, and I am very pleased that this Government will deliver on that.
Ms KOBI SHETTY (Balmain) (19:45:41):
I support the Residential Tenancies Amendment Bill 2024. I note that my colleague The Greens NSW spokesperson for housing and renters' rights, the member for Newtown, has already spoken on the bill. I acknowledge the considerable and commendable work she has done to bring the issues addressed in the bill to prominence in this place. When the member for Newtown was elected in 2015, it was pretty much unheard of for a member of the New South Wales Parliament to be championing renters' rights. Almost 10 long years later and here we are, in no small part because of the dedication and commitment to this cause by The Greens NSW, driven in this place by the member for Newtown. Of course, she has received considerable support from my other colleague the member for Ballina and from my predecessor as the member for Balmain, Jamie Parker.
I support the bill, and I urge all members in this place to do the same. It is long overdue. It is disappointing that during its 12 years in government the Opposition did not see fit to introduce these reforms. Indeed, it had the chance when it reviewed the Residential Tenancies Act and brought amending legislation to Parliament in 2018, but it failed to do so. That was despite the strong calls from renters at the time. Tenants' advocates and groups such as the Tenants' Union of NSW had been calling for such reforms for several decades before then—that is right, decades. The bill addresses an issue that is well and truly past due. The bill has a long history. There were calls to bring in just cause evictions when the first renting laws in New South Wales were introduced by Labor in the 1980s, putting an end to some grossly unfair practices that were all too easy for landlords to get away with under common law leases.
There were further calls to reform evictions without grounds when the current legislation was being drafted in 2010—again, under a Labor government. That is why it was so good to see NSW Labor finally come to terms with this issue in 2017, when its then leader announced that it had changed its position and called for an end to unfair evictions. In media reports from the time, Luke Foley, who was then the member for Auburn and Leader of the New South Wales Labor Party, said:
This is a matter of basic fairness. I can't tolerate a situation where there are 750,000 kids in rental properties in NSW and some of them are being forced to move four, five, six or seven times and they never get a reason for it.
That was almost seven years and four NSW Labor leaders ago. Since then, to its credit, the Labor Party has held its nerve, maintaining its position to end unfair evictions and taking this policy to two State elections, including the election it won in 2023 that enabled it to form a minority government, with support from The Greens and Independents on the crossbench. It is a shame that, after squandering several opportunities to deliver this reform while in government, the Coalition waited for an election it would lose before staking its claim on this issue. But it was genuinely exciting to see the Liberal Party offer its support for ending unfair no-grounds evictions in the lead-up to the 2023 State election, making it an issue that now enjoys broad support across the Parliament. Cross‑party support has been consolidated thanks to the private member's bill introduced by the member for Newtown's to prohibit no-grounds evictions, which was referred to a parliamentary committee to help determine the best path forward for this reform.
I am so pleased that after many years of advocacy, we are now debating Government legislation to make those much-needed changes to the law. The changes proposed today will have a significant impact on the lives of so many people in our community who are struggling to find and keep a secure and affordable place to call home. Right now in New South Wales, tenants can be unfairly evicted, receiving just 30 or 90 days notice—depending on whether they are on a fixed-term or continuing agreement—without any reason. As we heard in the Chamber today, that practice has led to nearly 30,000 households being evicted without a reason each year, creating a climate of instability and fear. Tenants know that if they complain about a rent increase or ask for repairs to be carried out, they might receive an eviction notice instead. They know that despite the promise in the legislation that so-called "retaliatory evictions" are not allowed, those rules are easy for landlords to get around and the practice is widespread.
No-grounds evictions are especially unjust because tenants have no opportunity to challenge them or even address the underlying reason. Once a landlord decides to use a no-grounds eviction, the tenant is left powerless, facing the loss of their home without recourse. That is what makes no-grounds evictions so unfair. In my own electorate of Balmain, where 41.5 per cent of the community rents, that issue really hits home. Every day I speak to renters in my community, and many of them have shared with me their stories of unfair treatment and no‑grounds evictions. Almost everyone I speak to has had a rent increase that far exceeds inflation, with hikes of 25 per cent, 30 per cent and sometimes as high as 45 per cent hitting especially hard. That is a shocking statistic that I find hard to comprehend. Some have had to move out of their communities because they could no longer meet the expense, while others have tried to negotiate.
Negotiating with a landlord under our current renting laws does not always end well for tenants. Many people I speak to have experienced a no-grounds eviction in response to attempts to negotiate. The ever‑looming threat of no-grounds evictions creates a significant power imbalance. It results in renters tolerating poor housing standards—we see that across the State—and skyrocketing rent increases, which have jumped significantly over the past few years. They fear that if they speak up, they could end up homeless instead. A large number of homeless people live out of their cars and in all sorts of appalling situations because they struggle to find a place to call home. Of course I speak to landlords too, and I thank the landlords in my electorate who have gone the extra mile to assist tenants by keeping their rents down. That puts downward pressure on the market, so it is not just renters in their own investment properties who stand to benefit. But, sadly for renters across New South Wales, such landlords are not the norm.
Turning now to the substance of the bill, it will amend the Residential Tenancies Act so tenants in New South Wales cannot be evicted without reason or grounds. It will replace provisions that currently enable no-grounds evictions with a new subdivision requiring one of the following specific grounds for termination notices: a breach of tenancy agreement; actual or proposed sale of premises; demolition of, or significant renovations or repairs to, premises; tenant no longer being eligible for an affordable housing scheme, transitional housing program, student accommodation or employee and caretaker residential tenancy agreement; premises being required for key worker accommodation; premises no longer being used as rented residential premises; or landlord or family residing at the premises.
Evidence requirements to substantiate the above grounds will be set out in regulation, and landlords or their agents who serve fraudulent or incorrect termination notices will be subject to penalties of up to 650 penalty units. The bill will also require landlords to respond within 21 days to all requests from tenants to keep a pet and to provide a valid reason if consent is refused. Landlords will also have the ability to provide conditional consent for a pet. Additionally, the bill limits rent increases to once every 12 months for all lease types—it is breathtaking that provision does not currently exist. It prohibits paid background checks at the rental application stage and requires renters to have a free and easy way to pay rent. The bill also makes the NSW Rental Commissioner a member of the Rental Bond Board.
Those amendments are long overdue and will have a meaningful impact on the lives of renters across the State. During a housing crisis, we must do all that we can to ensure that renters have a safe, stable and affordable place to call home. While the bill is incredibly welcome, we know that there is so much more work to be done. We must continue to push for further protections, including caps on rent increases to help combat the rising cost of living for the one in three people who rent their home in New South Wales. Skyrocketing rents are pricing many key workers out of homes. Anglicare recently released a study that showed that 99.1 per cent of rentals were unaffordable for early childhood educators, 97.8 per cent are unaffordable for ambulance workers and 96.3 per cent are unaffordable for schoolteachers. Those figures are deeply concerning and are a sign that we need to do far more to address the issue of unaffordable rents.
We also need to work to ensure better protections for renters with pets. The current change will not offer much additional protection for renters, and it will mean that renters with pets may still struggle to find a home. That is particularly concerning for renters, including women who may already be in a precarious and dangerous situation when fleeing from domestic or family violence. I look forward to seeing the Labor Government work with the crossbench to deliver more meaningful reform in that space. I will continue working with my Greens colleagues, the crossbench, community members and renters' rights advocates to call for better protections for renters. In the meantime, I acknowledge the significance of the reforms currently on the table and the huge real‑world impacts that the changes will make for renters in the State.
I again thank rental advocates, including Ned in my team, who has worked on the issue forever—since long before he worked in the Balmain electorate office. I thank Councillor Sylvie Ellsmore and the Newtown team, in particular Patricia, who has worked her backside off for a very long time. I thank my Greens colleagues for their work on that critical issue and my crossbench colleagues who support the bill. I thank the Government for its comprehensive reform and for working in good faith with The Greens to see it through, and I thank those members of the Opposition who have spoken up to advocate for change. As the member for Newtown said, The Greens—and the member for Newtown in particular—have worked with the community and advocates to get the issue on the radar for so very long. I am thrilled to be here today to see it being legislated. I commend the bill to the House.
Mr DAVID MEHAN (The Entrance) (19:55:45):
I am delighted and very proud to be part of a Labor Government introducing some of the most wideranging improvements to renters' rights that any of us in this House have seen in our lifetimes. The Residential Tenancies Amendment Bill 2024 will amend the Residential Tenancies Act to do several things:
(a)to ensure residential tenants are offered a convenient and free way to pay rent,
(b)to ensure prospective tenants cannot be charged for background checks,
(c)to enable residential tenants to obtain consent to keep animals and to set out the grounds for a landlord to refuse consent,
(d)to require a landlord to have a valid reason to end a residential tenancy,
(e)to specify the grounds on which a landlord may terminate a residential tenancy by termination notice,
(f)to limit rent increases to once every 12 months for all leases,
(g)to create offences including an offence for a landlord wrongly giving a termination notice,
(h)to specify when a tenant may vacate premises after a termination notice is given and before the termination date,
(i)to make the NSW Rental Commissioner a member of the Rental Bond Board.
There is a whole bunch of stuff in the bill, and the Minister and my colleagues have spoken in detail on those things. That is also why I say that these are the most wideranging changes and improvements to the way renters deal with the people who own the properties they live in, their landlords. Fundamental to the bill is ending no‑grounds eviction. Currently, landlords can end a lease without giving a reason. That is known as no-grounds eviction and leaves renters facing sudden and frequent moves. It causes tremendous unfairness and disruption in their lives. Without the stability and protection that the bill will provide, tenants cannot make a rental premises feel like a home. Fundamentally, ending no-grounds eviction is the most important part of the bill.
I thank the hundreds of people across the State who made submissions to the review that the Government used to inform its work on the bill. I particularly acknowledge the many community activists who have advocated over many years for improvements in renters' rights. It is fair to acknowledge that The Greens have been very vocal in that regard. I also acknowledge all the members in Young Labor and in the Labor Party rank and file who have time and again said that we need to do more to improve renters' rights. In this State and in this nation, only the Labor Party is both willing and able to deliver these sorts of laws to make our society a better and fairer place for everyone. That is why I am proud to be here today and proud to be a member of that party. We have a lot more to do to make our housing system better and fairer. We have yet to achieve a situation where we have sufficient, safe and affordable housing in this State. The bill is an important step along the journey to making our State a fairer place for all of its citizens. I commend the bill to the House.
Ms TAMARA SMITH (Ballina) (19:59:36):
I contribute to debate on the Residential Tenancies Amendment Bill 2024. This bill is cause for great celebration. The progressive side of politics has been pushing for the end to no-grounds evictions for a decade, at least. The reforms go some way towards redressing the power imbalance between tenants and landlords, and tenants and the profit-driven property market. The Greens have been advocating for these reforms for over a decade. I acknowledge the incredible hard work of our housing spokesperson, the member for Newtown, and her office and successive staff that have worked with her and our party room, as well as the work of our Greens members and communities for their advocacy and voice on this issue. I congratulate the Minister and the Premier on making good on these reforms that Labor committed to in the 2023 election.
In the Ballina electorate, I particularly recognise the work and advocacy of the Northern Rivers Tenants Advice and Advocacy Service, the Northern Rivers Community Legal Centre and House You for their work standing up for renters' rights. Make no mistake, renters across New South Wales have been doing it tough for at least 10 years. Constant rent increases, evictions for trivial reasons and an inability to feel safe and secure even with a lease has been the model of renting in this State for many years. As a lifelong renter before I was elected to Parliament, I can say that in the Ballina electorate the rental crisis has been going on for many decades. Being kicked out of a home because it is festival season or because the landlord can make more money on the short-term holiday market has become the norm in my area, not the exception. The long-term impact of the prevalence of short-term holiday letting and the subsequent shortage of available rental properties has directly led to exorbitant rents and people being priced out of the rental market in my region, and then add to that the 2022 floods.
Talk to any renter in the Ballina electorate and they will have a horror story about unfair evictions, price bidding on rents—which, thankfully, is now illegal—the extreme lack of rental availability, 300-plus applications for homes, and rent prices that match the suburbs of Kirribilli and Bondi, without the access to public transport or any of the health, education or social supports available to Sydneysiders. That is why my community is so excited about a 60-day cap on whole homes that can be rented as short-term holiday lets across most of Byron shire. We are already seeing a significant increase in available rental properties, and I believe we will see rent prices come down over time. That is certainly the model for other areas with high tourist visitor economies. This legislation comes at a time when the rental system across the State is at complete crisis point. Had the Coalition Government listened to renters and The Greens and taken action any time in the 12 years it was in government, we would not be in this dire situation. Better late than never, as they say.
This legislation ends no-grounds evictions for fixed-term and periodic leases, and limits how often rent can be increased. It bans renters from being asked to pay for background checks and makes it easier for renters to pay their rent. The status quo is that a landlord can end a periodic or fixed-term lease once that fixed term ends, without giving any reason to the tenant. Now there must be a valid and justifiable reason for ending any lease. It tips the balance of power towards the renter and can provide a sense of security for the tenant if that property continues to be rented out. The bill replaces provisions that currently enable no-grounds evictions with a new subdivision requiring one of the following specific grounds for termination notices: breach of tenancy agreement, actual or proposed sale of premises, demolition of or significant renovations or repairs to premises, tenant no longer eligible for affordable housing scheme, premises required for key worker accommodation, premises no longer to be used as residential premises, or landlord or family residing at the premises.
There is some improvement for pets on paper, but The Greens are seeking greater surety for tenants. The status quo in the bill does not capture the reality of strata, for example, and puts the onus on the tenant to take the matter to the NSW Civil and Administrative Tribunal if they want to make the case that a denial is not a valid reason. We will not hold the bill up, but we would like to see a blanket presumption that any tenant can have pets and that the onus is on the landlord to make the case otherwise. We welcome the fact that, under this law, there can be no more than one rent increase every 12 months for all lease types. The Greens welcome that the bill will appoint the Rental Commissioner as a permanent member of the Rental Bond Board. We will seek to insert a new section requiring the secretary of Fair Trading to collect data on the grounds used to evict tenants. We will seek to require the secretary to publish annual reports containing this information. We will also seek a statutory review of the entire Act as soon as possible after five years from the commencement of the new section. We welcome the reform. I congratulate everyone who has got behind the bill.
Mr EDMOND ATALLA (Mount Druitt) (20:05:58):
I make a brief contribution to debate in support of the Residential Tenancies Amendment Bill 2024. The bill will amend the Residential Tenancies Act 2010. The bill centres around two fundamental principles: fairness for renters and legitimate reasons for landlords to end tenancies. By rebalancing the rental market in New South Wales, we are safeguarding the rights of over 2.2 million renters while maintaining the integrity of property ownership. The bill aims to abolish no-grounds evictions. Currently, landlords have the power to end a fixed-term or periodic lease without providing any reason, leaving renters in a precarious position. The bill seeks to end this practice, ensuring that landlords have valid reasons for terminating a lease. Whether it's due to selling the property with vacant possession, using it for personal or family use, or planning significant renovations, landlords must justify evictions under specific grounds. That shift will offer greater stability for renters, allowing them to establish roots in their homes without the looming threat of unjustified eviction. At the same time, it still respects the rights of landlords, enabling them to regain possession when necessary.
The bill replaces sections 84 and 85 of the Residential Tenancies Act, outlining new grounds for termination under sections 87E to 87M. Those include circumstances like offering the property for sale with vacant possession, no longer using it for rental purposes, or housing a family member. For example, if a landlord plans to renovate a property, they must prove that the works will commence within two months of the tenant's departure. This ensures that tenants are not unnecessarily evicted for indefinite or far‑off renovation plans. Additionally, landlords cannot use this ground to evade their legal responsibility to maintain the property. The inclusion of these provisions ensures that tenants are not subjected to undue hardship.
To maintain fairness, exclusion periods will be introduced, preventing landlords from re-letting a property within a specific time frame following termination. That will dissuade landlords from evicting tenants under false pretences, such as pretending to move in themselves and then promptly re-letting the property. The Government has been clear. These new grounds are reasonable, balanced and designed with both renters and landlords in mind. Most landlords will find these measures sensible, while only a minority of landlords might resist these changes if they do not want to follow best practices. Some may argue that these amendments unfairly burden landlords, preventing them from managing their investments effectively. That is not the case. The bill maintains landlords' rights to evict tenants in cases of rent non-payment, property damage, illegal activities or tenant harassment.
Landlords still have ample control over their properties but must adhere to clearer, fairer guidelines. Severe penalties are being proposed for false eviction, being 100 penalty points, or $11,000, for an individual, or 650 penalty points, or $71,500, for businesses. The bill does not stop at providing justifiable grounds for evictions. It also introduces a suite of measures designed to enhance the experience for renters. Notably, new sections allow tenants to give an early exit notice, freeing them from liability to pay double rent during an extended notice period. That alleviates the burden that renters face when trying to balance their finances during a transition between homes.
The bill also introduces changes to the rent increase provisions. Renters in fixed-term leases shorter than two years are now protected from multiple rent hikes within a 12-month period. It creates stability for tenants and aligns New South Wales laws with the National Cabinet's Better Deal for Renters agreement. Critics might suggest that rent control or restrictions on evictions could lead to landlords leaving the rental market, exacerbating the housing crisis. That argument overlooks the long-term benefits of a stable rental market. By providing certainty for tenants, we create an environment where renters are more likely to report property issues, ensuring a higher standard of living. Moreover, when landlords invest in their properties and maintain good relationships with tenants, they can expect a longer term, consistent rental income.
Another major change in the bill relates to allowing pets in rental homes. Currently, renters face significant obstacles to keeping pets, with landlords able to refuse without providing justification. The bill seeks to make it easier for renters to keep pets by requiring landlords to respond to pet requests within 21 days. If the landlord refuses, they must outline the reasons for doing so. This is crucial, as studies show that pet ownership has a profound impact on mental wellbeing, combatting loneliness and promoting overall happiness. While recognising the importance of pets for many families, the bill also takes into consideration legitimate concerns that landlords might have, such as potential property damage or the unsuitability of certain types of properties for pets. In cases where a pet is permitted, the landlord can still impose reasonable conditions, such as requiring professional carpet cleaning or fumigation at the end of the tenancy.
In conclusion, the Residential Tenancies Amendment Bill 2024 is a balanced, well thought out reform that addresses the longstanding needs of renters while maintaining the rights of landlords. The changes reflect a modern rental market that emphasises fairness, security and transparency. The bill ends no-grounds evictions, allows renters more control over their housing situation, and makes renting in New South Wales fairer and more predictable. It is not just a legislative step but a humane approach to creating homes, not just houses, for millions of people across the State. I thank the Minister for Better Regulation and Fair Trading for introducing the bill and modernising the rental market in New South Wales. I commend this bill to the House.
Mr JORDAN LANE (Ryde) (20:13:07):
I speak in support of the Residential Tenancies Amendment Bill 2024, a crucial step towards improving the rental landscape for the people of New South Wales. The bill is especially relevant to my electorate of Ryde, where the proportion of renters is steadily increasing. In an electorate that has seen significant housing developments in areas like Meadowbank and Macquarie Park, ensuring fair and clear rules for renters is no longer a luxury; it is a necessity. The bill amends the Residential Tenancies Act 2010 by making the following key changes. First, it will ensure that residential tenants are offered a convenient and free way to pay rent. At a recent community barbeque in Marsfield, I was appalled by the number of residents complaining that the only practical way to pay their rent was via an app that charged a processing fee. Those fees add to the overall cost of living and are an example of, rent‑seeking at its best—excuse the irony.
Second, the bill will ensure that prospective tenants cannot be charged for background checks. There is a cost associated with that process, and while some landlords may desire a background check, the onus should not be on a tenant to pay for the privilege of being considered for a rental property. Those costs are unnecessary and have rightly been abolished. Third, the bill enables residential tenants to obtain consent to keep animals and to set out the grounds for a landlord to refuse that consent. This is crucial. Australia has one of the highest rates of pet ownership in the world with some of the least pet-friendly laws. I have expressed my concern many times that, as the Government continues to propose high-rise living as a silver bullet for housing affordability, insufficient work has been done to make that style of living realistic and sustainable. It is an important first step to acknowledge that pets are often a crucial part of any family, but more must be done, which I will speak about in more detail.
Fourth, the bill requires a landlord to have a valid reason to end a residential tenancy. This is to abolish the notion of no-grounds eviction and is a necessary reform to inject fairness into a system that has evolved significantly. Many people are now lifelong or long-term renters, and, as property markets continue to rise, it is unconscionable that many people who have made a community their home for years have been unceremoniously evicted without grounds. Unscrupulous landlords do the calculations and realise that more money can be made by finding a brand‑new tenant without expectations, rather than negotiating a higher rent with an incumbent tenant. This is welcome reform, especially in my electorate of Ryde.
Fifth, the bill seeks to specify the grounds on which a landlord may terminate a residential tenancy by termination notice. In place of no grounds, the bill sets out prescribed grounds which, on balance, are fair and reasonable. For example, if a tenant breaches their lease agreement, if the property is sold or requires significant renovation, or if the landlord wishes to reside at the premises, a tenant can have their lease terminated. I have long advocated for these changes, and I am pleased to see them introduced. However, I note that schedule 1 [12] references the premises being required for use as key worker accommodation. I would be grateful if the Minister could clarify or provide a real-world example of how this particular ground could be invoked by a landlord. Specifically, under what legislative instrument or regulation could a premises be required for such a use? I expect that this must have arisen in the course of consultation with the stakeholders, and I would find value in the Minister elaborating on how that arose and by which stakeholders.
Sixth, the bill seeks to limit rent increases to once every 12 months. For periodic leases or fixed‑term leases of two years or more, this is a useful step for renters. It provides a long line of sight for future increases and a degree of predictability that allows families and individuals to plan and budget. This was raised repeatedly this time last year when I held Ryde's first ever rental forum, and I strongly welcome the change. Other key changes in the bill relate to offences for wrongly giving a termination notice, specifying when tenants can vacate after a termination notice but before termination date, and making the Rental Commissioner a member of the Rental Bond Board. Those are welcome clarifications and initiatives that will help people in my electorate better understand their rights and navigate the rental system.
A key aspect of the bill, which is relevant to my electorate, is the clarification of rules around pet ownership. For too long the question of whether tenants can have pets has been a grey area, leading to disputes between landlords and renters. In Ryde, many families, singles and retirees live in rental properties. The reforms are a welcome step towards bringing clarity and fairness. The reforms clarify that a tenant who has entered into a rental agreement may keep an animal at the premises with the landlord's consent. The law will require the landlord to provide a written response within 21 days either approving or refusing the application. No response within 21 days is to be treated as consent, meaning that the laws will err on the side of the pet owner in the case of an unresponsive landlord.
For those who receive a refusal, there must be reasonable grounds, such as an unreasonable number of animals, unsuitable premises for the welfare of the animal or high risk of property damage. This is in line with other jurisdictions and is a welcome step. However, opportunities appear to remain for strata schemes to impose overly zealous restrictions, which could cause an unknowing tenant to believe that they are not permitted to keep a pet. We must do better as a Parliament, especially for those living in apartments, to clarify the rules. I encourage the Government to be ambitious in its reforms to strata properties and ensure we do not create separate classes of tenants dictated by whether they live in a house or a unit.
While the bill introduces critical protections, it does not address one of the root causes of the pressures in the rental market, which is supply. More regulation alone cannot bring down rents and one solution lies in reducing the number of vacant investment properties. Those properties are available now. They do not require DAs or a workforce. They are already built and their introduction to the rental market would not upset the sensibilities of local community amenity or create undue pressure on surrounding infrastructure. I have previously called on the Parliament to reduce the attractiveness of retaining vacant properties. Instead of buying and renting homes to locals, some people park their money in properties and wait for the market to rise. In doing so, they remove much‑needed rental properties from the market, driving up prices for everybody and undermining public confidence in a planning system that becomes too focused on new development rather than the efficient use of current development. While it would not be a complete fix, it is something and it is fast. It is time we looked at measures to make it more difficult for investors to keep properties vacant, ensuring that housing is used for people, not speculation.
There is still much more work to be done. Rental reform alone will not solve the problems that renters face. We must also look at strata and building reform to ensure that improved rental conditions are not undermined by poor building quality or unscrupulous strata management. In Ryde, where apartment living is becoming the norm, we have heard too many stories of poorly built developments—leaks, structural defects and issues that make life extremely difficult for renters and owners alike. Additionally, strata management issues, including exorbitant fees and mismanagement, place unnecessary burdens on residents. If we want to make renting a more sustainable option, we need to couple tenancy reforms with better oversight of strata managers and stricter building standards. The bill is an important step in the right direction, but it cannot be the last. It is time to build a rental market that offers stability, fairness and opportunity for everyone, whether they rent by choice or by necessity. I commend the bill to the House.
Debate adjourned.
TEMPORARY SPEAKER (Mr Clayton Barr):
I set down resumption of the debate as an order of the day for tomorrow.