Bills RESIDENTIAL TENANCIES (MISCELLANEOUS) AMENDMENT BILL
Bills RESIDENTIAL TENANCIES (MISCELLANEOUS) AMENDMENT BILL
Introduction and First Reading
The Hon. A. MICHAELS (Enfield-Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (fifteen forty-two): Obtained leave and introduced a bill for an act to amend the Residential Tenancies Act nineteen ninety-five and to make related amendments to the Real Property Act eighteen eighty-six and the Residential Parks Act two thousand seven. Read a first time.
Second Reading
Second Reading
The Hon. A. MICHAELS (Enfield-Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts) (fifteen forty-three): I move:
That this bill be now read a second time.
I am pleased to introduce the Residential Tenancies (Miscellaneous) Amendment Bill twenty twenty-three. This bill proposes to amend the Residential Tenancies Act nineteen ninety-five, the Residential Parks Act two thousand seven and the Real Property Act eighteen eighty-six to improve the rights of renters, modernise existing rental laws and ensure landlords can continue to manage properties effectively. The amendments proposed in the bill form part of the government's commitment to improve housing outcomes for the people of South Australia.
Earlier this year, the commencement of the Residential Tenancies (Protection of Prospective Tenants) Amendment Act twenty twenty-three and amendments to the Residential Tenancies Regulations twenty ten provided some immediate relief for tenants through taking measures to ban rent bidding, protect tenant information and make residential rental bonds more affordable. This bill contains broader reforms that are necessary to respond to the many challenges faced by tenants in South Australia.
In September twenty twenty-three, the Senate Community Affairs References Committee delivered its interim report into the worsening rental crisis in Australia. This report highlights that the challenges faced by tenants to find suitable, affordable and safe housing are at an unprecedented scale, with Australia experiencing a period of extremely low rental vacancy rates and rising rental levels. In August twenty twenty-three, the residential rental vacancy rate in Adelaide was zero point five per cent, the second lowest rate of the Australian capital cities behind Perth.
The bill proposes amendments to South Australia's rental laws that are consistent with the agreement made by national cabinet on sixteenth August twenty twenty-three to A Better Deal for Renters, which focuses on improving renters' rights across Australia. Reforms within the bill also consider the outcomes of extensive consultation on the review of the act conducted by Consumer and Business Services.
Broad consultation was undertaken between fifteenth November and sixteenth December twenty twenty-two, when more than five thousand people completed a YourSAy survey and over one hundred fifty submissions were received from key stakeholders and members of the public. The outcome of this consultation informed the drafting of the bill, which was released for targeted consultation between fourteenth August and fourth September this year.
All stakeholder groups that made submissions during public consultation were invited to provide feedback on the bill as part of targeted consultation. Submissions were received from twenty-one stakeholders, including the Real Estate Institute of South Australia, Shelter SA, Uniting Communities, Better Renting, RSPCA SA, SACAT and COTA SA. This feedback informed the final version of the bill that I am pleased to introduce today.
A key reform of the bill is to prohibit the termination and non-renewal of tenancy agreements without providing a prescribed reason. Notice of termination on a prescribed ground must be accompanied by written evidence as approved by the Commissioner for Consumer Affairs. This measure is part of a series of amendments that will provide tenants with greater security of tenure and encourage longer tenancies.
It is proposed that landlords will retain the ability to terminate a tenancy by providing a notice of termination due to a breach of agreement as specified in section eighty of the act. Landlords will also be able to end a periodic tenancy or not renew a fixed-term tenancy agreement because they require possession of the property for reasons detailed in section eighty-one of the act.
To balance the rights of landlords, the reasons that may be used to end a periodic tenancy or not renew a fixed term tenancy will be expanded through regulations. These reasons, which will be finalised after consultation on the supporting regulations, are expected to include:
the tenant or their visitor intentionally or recklessly causes serious damage to the property, including safety equipment in common areas;
the tenant or their visitor puts neighbours, the landlord or the landlord's agent, contractors or employees in danger;
the premises are unfit for human habitation, destroyed totally or destroyed to the extent that they are unsafe;
the tenant or anyone else living at the property seriously threatens or intimidates the landlord, their agent or the landlord's contractors or employees;
the tenant has failed to comply with a SACAT compliance order;
the tenant has already been given two breach notices, and the same breach occurs;
the property is being used for illegal purposes;
the tenant has brought in other tenants or subtenants without consent;
the tenant has not paid the bond as agreed;
the landlord is a government Housing Authority, and the tenant misled the authority so they could get social housing;
the tenant has been involved in an illegal drug-related activity in the property;
the tenant is keeping a pet without consent, and SACAT has made an order excluding the pet;
the tenant is renting a house from a charity or community housing provider, and the tenant no longer meets the charity or community housing provider's eligibility requirements to continue as a tenant; and the tenant has engaged in false, misleading or deceptive conduct or concealed material facts from the landlord or agent in inducing the landlord to enter into the tenancy agreement.
Consultation highlighted that some tenants are apprehensive to exercise their rights under the act, fearing retaliatory eviction. As a measure to ensure that tenants can exercise their rights, such as requesting necessary repairs, the bill proposes to insert a new section ninety A into the act to allow SACAT to determine that a notice of termination has no effect when SACAT is satisfied that it is a retaliatory notice. This change is consistent with the agreement made at national cabinet to ensure provisions to allow appeals against retaliatory eviction notices are fit for purpose.
I understand that tenants are sometimes forced to leave rental properties due to disproportionate rent increases, which can cause their rent to become unaffordable. Section fifty-six of the act currently allows SACAT to determine rent to be excessive by considering factors including the general level of rents for comparable premises in the same or similar localities and the state of repair and general condition of the premises.
The bill proposes to amend this provision to require that SACAT must also have regard to whether the increase in rent was disproportionate when deciding a rent increase is excessive. It is proposed that tenants who believe their rent is excessive will have ninety days after being notified of a rent increase to apply to SACAT for a determination on whether the rent increase is excessive and should be reduced.
The bill proposes several reforms to encourage longer tenancies. Under the Real Property Act eighteen eighty-six the title of a registered proprietor is indefeasible subject to, among other things, a residential tenancy agreement not exceeding one year. The bill proposes to amend this to three years to offer landlords greater security from a caveat being placed on their property by a tenant who has a fixed-term tenancy agreement exceeding twelve months. This proposed change to the Real Property Act eighteen eighty-six is consistent with equivalent legislation in other Australian jurisdictions.
Tenants may be reluctant to enter into longer fixed-term tenancies due to concern about their liability to continue paying rent should they need to end the tenancy early. The bill proposes to introduce section seventy-five A, which limits the amount of unpaid rent that a landlord can claim to a maximum of one month of rent for each year remaining of the fixed-term agreement. This must not exceed six months' rent in total. When there is less than one year remaining on an agreement a tenant will only be liable for a maximum one month of rent. It is noted that landlords will remain entitled to costs associated with reletting, such as advertising costs.
The introduction of section seventy-five A aligns with national cabinet's agreement to limit break-lease fees for fixed-term agreements to a maximum prescribed amount, which declines according to how much of the lease has expired.
Pets can offer physical and mental health benefits to their owners and can provide support to people experiencing loneliness. Many tenants in South Australia report struggling to find pet-friendly rental accommodation. According to the RSPCA, one in five animals surrendered is due to their owners being unable to find a rental property that allows pets.
The bill proposes to introduce a presumption that a tenant who applies to keep a pet in a rental property cannot have their request unreasonably refused provided the tenant agrees to comply with any reasonable conditions imposed by the landlord. Reasonable conditions may include requiring the pet to be effectively restrained during inspections and requiring carpets to the premises to be cleaned to a professional standard at the end of the tenancy. Tenants will have the option to apply to SACAT if they believe their request for a pet was unreasonably refused or they are not satisfied that the conditions imposed by the landlord are reasonable.
It is also a challenge for some South Australians to find an accessible rental property. This challenge is intensified by limitations on how rental properties can be modified. The bill proposes to change section seventy of the act which specifies the process for requesting alterations to rental properties. This change will prevent a landlord from unreasonably withholding consent to an alteration or an addition to a rental premises that is minor but necessary to ensure provision of infrastructure or a service of a prescribed kind, or required for a disability within the meaning of the Equal Opportunity Act nineteen eighty-three and would not significantly change or affect the structure of the premises.
Changes to this section would also prevent a landlord unreasonably withholding consent to an alteration or an addition if the tenant has mobility or access needs relating to their age and which is reasonable and necessary for the tenant and would not significantly change or affect the structure of the premises.
Changes to section seventy of the act will make it easier for tenants to make minor modifications, such as installing wall anchors to safely mount furniture, adding picture hooks, installing child safety gates and changing internal window coverings.
These changes will also create more opportunities for tenants to make changes to improve the accessibility of a property through measures such as adding safety rails, temporary ramps and custom showerheads, provided these changes are made good at the end of the tenancy.
All rental properties are required to meet the prescribed minimum housing standards under the Housing Improvement Act twenty sixteen. The bill proposes to introduce section sixty-seven A, which will clarify that a landlord under a residential tenancy agreement must ensure that their property complies with these standards on or before the day on which the tenant enters into occupation of the premises.
It is noted that section sixty-seven A does not require an independent auditor to conduct inspections to ascertain compliance with these standards. Should a rental property not meet these standards, section sixty-seven A allows a tenant to request the landlord to carry out urgent repairs to ensure the premises complies with these standards. Section eighty-five B will allow a tenant to serve a notice of termination if their rental property does not comply with these standards.
The bill proposes that tenants will be able to terminate tenancies in other circumstances under the proposed section eighty-five AA, when a tenant has served a notice of breach of a residential tenancy agreement on the landlord on two occasions and the landlord has remedied the breach in the prescribed period on both occasions. Should the same breach occur again, the tenant may serve a notice of termination without providing a period for the landlord to remedy the breach. It is proposed that a tenant will also be able to terminate a tenancy in circumstances where the tenant has been offered and accepted accommodation by the South Australian Housing Trust, a subsidiary or by a community housing provider.
Section eighty-five C proposes that a tenant can terminate a tenancy if they require care of a kind prescribed by regulations, such as care within a nursing home, and they need to vacate in order to obtain that care, or the tenant requires prescribed temporary crisis accommodation and needs to vacate the premises to obtain that accommodation.
At the national cabinet meeting on sixteenth August twenty twenty-three, agreement was obtained from all states and territories to implement a number of reforms to better protect tenants who are experiencing domestic and family violence. The bill proposes measures to strengthen protections for tenants who are victims of domestic abuse. This includes the introduction of section eighty-five D, which will allow tenants to serve a notice of termination in circumstances of domestic abuse by providing supporting evidence to their landlord instead of making an application to SACAT. Section ninety B proposes to allow SACAT to order a termination notice served on the tenant is invalid if the tenant has been subjected to domestic abuse and SACAT determines that the termination notice was served due to the act of a person who subjected the tenant to that domestic abuse.
The inclusion of proposed sections sixty-six A and sixty-six B will allow a person experiencing domestic abuse to alter any external door or window lock without the permission of the landlord provided keys to the new locks are issued to the landlord or agent as soon as possible. Changes to section eighty-nine A of the act are also proposed. These changes will provide SACAT with greater jurisdiction to make decisions about whether a tenant, who has experienced domestic abuse and was not responsible for damage caused by the co-tenant, should be liable to pay compensation to the landlord for the damage. In practice, this will allow SACAT to refund a victim's portion of the rental bond and hold a co-tenant responsible for any damage they caused even when the amount of compensation owed to the landlord is greater than this tenant's portion of the bond.
The bill proposes to provide additional protections for people living in shared accommodation. Extending the definition of rooming houses will afford more renters living in shared accommodation protection under the act. The definition of a rooming house will be amended to mean premises in which two or more rooms are available for valuable consideration. The proposed inclusion of sections one hundred three B to one hundred three E in the act establishes a rooming house registration scheme for rooming houses with accommodation available for five or more persons. This register will be maintained by CBS and require that prescribed rooming house proprietors can provide CBS with evidence that they are fit and proper to carry out business involved in the provision of accommodation under rooming house agreements.
Further changes to the rooming house provisions within the act include amending section 105U so that a proprietor may only terminate a rooming house agreement on a prescribed ground and provide 60 days' notice. Presently, a proprietor can terminate a periodic agreement without grounds by providing four weeks' notice.
South Australia is currently experiencing extremely low rental vacancy rates, making it a competitive time to be in the market for a new rental property. It is important that tenants who receive notice that their residential tenancy will not be renewed have enough time to secure new accommodation. The bill proposes to amend section eighty-three A to require that a landlord may only terminate a fixed-term residential agreement at the end of the fixed term on a prescribed ground with sixty days' notice as opposed to twenty-eight days. This will provide tenants with more time to secure a new rental property and make the necessary arrangements to move house.
The bill also proposes to allow tenants to vacate their rental property within the sixty-day notice period and not pay rent after they vacate. This provision will be contingent on a tenant having had their tenancy terminated or not renewed on certain grounds, such as the landlord moving into the property, and requires the tenant to provide seven days' notice to the landlord or agent if they intend to vacate early.
At present, a landlord or agent may inspect a rental property once every four weeks. This is out of step with all other Australian jurisdictions, which allow a maximum of four routine inspections each year. The bill proposes to amend section seventy-two of the act to reduce the number of routine inspections permitted, so that a maximum of four routine inspections per year is allowed, unless SACAT orders that additional inspections are appropriate. Circumstances that may warrant additional routine inspections include where a tenant has issues with hoarding and more frequent inspections are required to ensure the safety of the property is maintained.
I seek leave to have the remainder of the second reading explanation and the explanation of clauses inserted in Hansard without my reading them.
Leave granted.
It is noted that section seventy-two one i of the Act allows a landlord or agent to enter a rental property for a genuine purpose with the consent of the tenant. This section allows for landlords to hold re-inspections, should any issues arise during a routine inspection that the landlord and tenant seek to rectify without a landlord issuing a notice for breaching the tenancy agreement.
As a measure to ensure the privacy of tenants during the sale of a tenanted property, it is proposed that section seventy-two five a is included in the Act to allow for regulations to prescribe requirements relating to the production, distribution or publication of documents or records in connection with the relevant entry onto the premises. This will allow the regulations to provide restrictions regarding how tenants' belongings can be photographed and published in real estate advertisements.
As a step towards improving energy efficiency standards in rental properties, the Bill proposes to introduce section sixty-eight A, which specifies that any new or replacement fixture in a rental property will be required to meet certain energy or water efficiency standards, which are to be detailed in regulations.
The inclusion of section seventy-three A specifies that a landlord and tenant may enter into an agreement under which the tenant is able to pay for the installation of a solar energy system. This section is intended to clarify that no section of the Act prevents tenants and landlords forming agreements about the installation of energy saving infrastructure by a tenant.
The Bill also proposes changes to statutory and excess water charges. It is proposed that section seventy-three of the Act is amended to specify that a landlord is responsible for rates and charges not based on the level of consumption, such as the water supply charge. If the premises is separately metered, the landlord and tenant may agree otherwise. Further, a tenant is not required to pay rates or charges if the landlord fails to provide a copy of the invoice within thirty days.
The introduction of section seventy-three B proposes to clarify that a landlord is responsible for excessive water usage charges caused by a fault in water infrastructure or equipment or other appliances, fittings, or fixtures at or connected to the premises when the tenant has notified the landlord of the issue as soon as practicable. It is noted that the tenant and landlord are not responsible for costs associated with a fault that is the responsibility of SA Water.
The Bill also proposes to introduce measures to prevent the provision of misleading information. Section forty-seven C will require that a landlord or agent make prescribed information available to prospective tenants and do not make any statement or representation they know to be false, misleading, or deceptive or knowingly conceal a material fact of a kind prescribed by regulation. It will also be a requirement that tenants are informed of information related to embedded networks, when entering a tenancy where an embedded network is present.
To balance the rights of landlords, and ensure prospective tenants are deterred from providing misleading information, the Bill proposes to introduce a provision at section forty-seven B to require that a prospective tenant does not give a landlord false information or a falsified document in connection with an application to enter a residential tenancy agreement.
At present, a landlord is not entitled to compensation (i.e., break lease costs) where the landlord terminates the agreement due to a breach by the tenant and the breach is for something other than unpaid rent. The Bill proposes the addition of section eighty-four A. This section will specify that landlords are entitled to costs or expenses of a kind determined by the Commissioner in connection with the termination of a residential tenancy agreement in prescribed circumstances.
When National Cabinet met on sixteenth August twenty twenty-three, it was agreed to move towards a national standard of no more than one rent increase per year for a tenant in the same property across fixed and ongoing agreements. To implement this, the Bill proposes to amend section fifty-five of the Act to clarify that an increase in rent, even by mutual agreement, must be at least twelve months after the date on which the residential tenancy agreement was entered into, or, if there has been a previous increase of rent under this section, the last increase. Section fifty-five also clarifies that if the agreement type changes (i.e. from fixed to periodic) the rent still cannot be increased within twelve months after the start of the original agreement or the last rent increase.
New provisions within the Act are proposed to accommodate changes to the payment of tenant bonds. Changes to sections sixty-one through sixty-three of the Act will allow regulations to provide for lodgement of bonds by tenants and clarify that bonds will be returned to tenants equally unless otherwise consented to or disputed. Further, changes to these provisions will clarify that SACAT may disclose sealed orders to CBS to allow CBS to make bond repayments in accordance with these orders.
Section sixty-three of the Act specifies the process for the repayment of bonds. At different stages of this process, parties are provided with ten days to take certain actions. This timeframe of ten days was designed to allow for communication via the postal system. The Bill proposes that these timeframes are prescribed in regulations, with the view to reduce these timeframes in circumstances where all parties have access to the online bonds system.
The Bill proposes to introduce section sixty-seven B into the Act. This section requires a landlord who becomes aware that drug related conduct has occurred at a rental property must test the property for contamination and remedy any contamination so that the property meets the minimum housing standards under the Housing Improvement Act twenty sixteen. The proposed introduction of eighty A will allow a landlord to terminate a tenancy agreement if they are aware the tenant has engaged in or allowed another person to engage in drug related conduct on the premises and testing indicates the property is contaminated.
The Bill will also clarify that a landlord or agent must not unreasonably withhold consent for a tenant to sub-let a property. To ensure that community housing is reserved for tenants who meet eligibility requirements, a landlord who is a community housing provider may withhold consent for a tenant to sublet the property when the sub-tenant does not meet the eligibility requirements to occupy the property. The Bill also proposes to introduce section seventy-four B into the Act to specify that a landlord or agent must not charge a fee for giving consent to a tenant to sub-let the property.
The Act currently lacks detail about the process for ending a tenancy following the death of a sole tenant. The Bill proposes to amend section seventy-nine of the Act to clarify that a tenancy agreement will terminate thirty days after the death of the tenant, unless an agreement is reached with an administrator or next of kin of the deceased tenant, the tenancy is terminated earlier by notice, or a SACAT order specifies otherwise.
The Bill proposes change to requirements regarding the manner and payment of rent. Changes to section fifty-six A of the Act ensure the payment of rent is in a reasonably convenient manner and, in particular, to ensure that at least one means of payment is electronic and does not involve the collection of rent by a third party for a fee. This will guarantee that tenants who seek to transfer rent payments electronically, are able to do so without being charged.
It is further proposed within the Bill that section ninety-nine of the Act is amended to prevent a landlord, agent, or database operator charging a tenant a fee for giving the tenant personal information listed about them on a residential database.
Section one hundred one of the Act specifies that the income derived from the Residential Tenancies Fund may be applied for purposes connected with, or arising under the Act or the Residential Parks Act two thousand seven that are approved by the Commissioner. The Bill proposes to amend section one hundred one so that the Minister responsible for the Act may also approve the application of this income.
The Bill proposes to introduce section one hundred fourteen A into the Act, which provides that except in exceptional circumstances, leave must not be granted in relation to an application for a review of a decision by SACAT if a person was ordered to make a payment to another person and that has not occurred. This section is intended to prevent parties applying for a SACAT decision to be reviewed in order to delay making a compensation payment. A person will not be prevented from applying for a review of the decision when the compensation payment has been made.
The South Australian Government recently announced it will explore making the necessary changes to ensure ancillary dwellings, such as granny flats, can be rented to non-family members. This Bill proposes change to the definition of a residential tenancy agreement within the Act, to clarify that a residential tenancy agreement can include an agreement to rent a granny flat.
Reforms to the Residential Parks Act two thousand seven are also proposed by this Bill. As a measure to encourage transparency relating to embedded networks, section fourteen will be amended to require that a park owner must provide prescribed information to a resident if electricity is supplied via a connection point that is part of an embedded network.
The Bill also proposes change to section eighteen of the Residential Parks Act two thousand seven to include a new provision clarifying that residents of residential parks are not required to pay entry or exit fees, a management fee, a fee for amenities provided by the park (known as a communal contribution fee) or any other prescribed fee regardless of how the payment is described, including if this additional fee is described as 'deferred rent'. However, the resident and park owner may still agree to defer the payment of rent under an agreement so that it is paid at a later date than when it would fall due. Late rental payments must be calculated with specific reference to the regular rent fee payable for occupation. For example, a residential park owner may agree to allow a resident to pay twenty dollars of the weekly rent of two hundred dollars late such that one hundred eighty dollars is paid now and twenty dollars is paid after the due date.
To discourage landlords and residential park owners from contravening the Act and the Residential Parks Act two thousand seven, the Bill proposes to raise penalties to ensure the costs of contravening provisions are consistent and proportionate deterrents.
The Bill progresses reforms to South Australian tenancy laws that will ensure tenants are safe, secure and happy in their homes. They are also key in shaping the roles and responsibilities of landlords and land agents. These changes are significant, as they are a key component of the first substantive review of the Act since two thousand fourteen.
Subject to passage of this Bill through Parliament, I will seek further amendments to the Residential Tenancies Regulations two thousand ten to support the changes proposed in the Bill.
I commend this Bill to the House.