RESIDENTIAL TENANCIES (MISCELLANEOUS) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 19 February 2013.)

The Hon. A. BRESSINGTON (15:27): This bill attempts to balance the interests of landlords and tenants and provide solutions for the issues that can, and do, arise for both parties for the duration of a tenancy agreement. As other members have mentioned, landlords who rent their properties provide a valuable social service to those who either cannot afford their own home or, for various personal reasons, choose not to purchase their own home.

It goes without saying that for landlords' rights to be so significantly eroded to the point that they effectively lose control of the right to manage their properties in a way they determine would create an injustice. Although, let me be clear: I do not believe that this is what is happening here. Many landlords hold a legitimate concern when placing their properties on the rental market that they may unwittingly allow a bad tenant to take up residence in their property. For many years, that risk has been somewhat numbed by the potential for income to be generated from the proceeds of the agreed consideration or, as the Hon. Mark Parnell rightly pointed out, the tax benefits of negatively gearing your property.

Conversely, the rights afforded a tenant need to be protected, particularly the right to security, stability and exercising control over their own circumstances. I am sure we have all heard stories of tenants who have had these rights infringed by overbearing landlords. As mentioned in the COTA SA submission, research suggests that people on low or fixed incomes in private rental accommodation are more susceptible to housing stress. As it is typically people who are on low or fixed income who are in rental accommodation, it is therefore essential that wherever possible we make decisions which aid in reducing the stress placed on tenants.

There have been numerous improvements made by this amendment as well as potential concerns which other members have raised. Accordingly, I will not expand on those points any further. I believe this bill goes some way to balancing the competing issues between landlords and tenants. I know that several members have indicated they have amendments to this bill and I look forward to considering those amendments as the bill progresses.

The Hon. K.L. VINCENT (15:30): Today I will speak very briefly in support of the second reading of the Residential Tenancies (Miscellaneous) Amendment Bill 2012. As has already been covered, having access to safe affordable housing is essential to the welfare of our citizens. Accessible and available accommodation is an oft-discussed issue in the disability sector and, for those of you who monitor the unmet needs list as closely as I do, you would be aware that the number of people with disabilities who are homeless or at imminent risk of being homeless remains at a frankly embarrassing high, and that is a blight on our claim that we live in a modern civilised society that takes care of its citizens. However, perhaps I digress somewhat.

In relation to this bill, other members in this place have raised a number of questions in regard to the implementation of the bill itself such as pet bonds, and I look forward to these questions being answered during the committee stage of debate but at this stage I support the bill.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:32): I thank honourable members for their second reading contributions. As members would be aware, this bill is the result of extensive public consultation and updates the Residential Tenancies Act to reflect changes that have occurred in the tenancy sector over the past 15 years.

The purpose of this bill is to improve protections available for parties to tenancy agreements, as well as rooming house agreements and lifestyle villa agreements. The bill contains a comprehensive range of reforms to the Residential Tenancies Act that are designed to benefit tenants and landlords by increasing protection and clarity for both. Some reforms are designed to benefit residents and proprietors of rooming houses whose agreements are currently subject to minimal regulation. Some reforms are designed to improve the administration of the Residential Tenancies Tribunal which plays a pivotal role in resolving disputes and providing remedies.

Additionally the scope of the Residential Tenancies Act will be expanded to protect residents in lifestyle villages which provide rental accommodation and services to older South Australians. The bill proposes amendments to the act so that a standard form agreement for tenancy agreements will be introduced. If a landlord allows a tenant to keep a pet on the premises, they may take an additional week's rent in bond. Rent under the fixed-term tenancy will not be able to be increased unless at least 12 months have elapsed since the rent for the premises was fixed or last increased.

Landlords will be required to permit tenants to pay rent by at least one means that does not involve the payment of cash or the use of a rent collection agency, the services of which the tenant pays for. Landlords will be required to attempt to negotiate an entry time with tenants if they wish to be present during the entry, taking into account their work and other commitments The jurisdictional limit of the tribunal will be raised from $10,000 to $40,000. The tribunal will be able to determine an application without a hearing, based on the documentation provided by the parties. The tribunal will be required to attempt to conciliate disputes before proceeding to a hearing. In the absence of an agreement about water, if the supply of water is separately metered, rates and charges for water supply are to be borne by the tenant and, in any other case, by the landlord.

Landlords who have properly served tenants with a form 2 for rent arrears twice in 12 months will be able to apply directly to the tribunal for vacant possession if the tenant is in rent arrears for a third time. Landlords will only be required to store abandoned goods for 28 days rather than 60. Rooming house agreement bonds will be required to be lodged with the CBS and the national model provisions for the regulation of residential tenancy databases will be adopted.

Additionally, a few in-house amendments are proposed to be made to the bill, and it is anticipated that the bill will have widespread benefits across the community. I commend the bill to the house and look forward to the committee stage.

Bill read a second time.