Residential Tenancies (Minimum Standards) Amendment Bill

Introduction and First Reading

The Hon. R.A. SIMMS (16:38): Obtained leave and introduced a bill for an act to amend the Residential Tenancies Act 1995. Read a first time.

Second Reading

The Hon. R.A. SIMMS (16:39): I move:

That this bill be now read a second time.

I am proud to introduce the Residential Tenancies (Minimum Standards) Amendment Bill today. This is an issue that is of great importance to the Greens, and indeed earlier today I joined Uniting Communities, SACOSS and Better Renting at a press conference talking about this bill. I think the fact that the Greens had NGOs coming on board demonstrates the broad community support for the reform that we are seeking to advance today.

One in three South Australians rent their home. Many of them are long-term renters. Many renters are freezing through winter, baking through summer and unable to ensure there is sufficient ventilation keep to keep their homes free from damp and mould. There are currently no requirements for landlords to ensure their homes are healthy to live in. This bill introduces mandatory minimum energy standards to lower energy bills, improve temperature in homes and improve health.

We know how energy prices have been skyrocketing in recent years. We have heard stories about people having to choose between staying warm and eating this winter. Indeed, on Tuesday 7 May the ABC ran a story entitled 'Vulnerable Australians to choose between heating and eating this winter amid cost-of-living crisis'. In the story Anglicare SA's financial counselling and emergency assistance manager Astra Fleetwood said:

Last year we saw an increase in the cost of living and we expect that to continue to worsen.

It's people having to choose whether or not they have food on the table, paying the rent, or paying electricity.

I think we're very much at a crisis point in the community.

There are simple measures that can be implemented to help. Energy efficient appliances, sufficient insulation and the prevention of drafts through suitable seals can make a significant dent on power bills. According to a paper produced by SACOSS, installing insulation, blinds and draft proofing could reduce expenses by over $1,000 each year.

Sadly, renters are powerless when it comes to some of these measures unless landlords choose to implement them. The bill ensures that certain standards are mandatory. A 2017 study found that 90 per cent of renters support mandatory energy efficiency standards. These standards can help renters reduce their energy bills and allow them to stay warm in winter.

Poorly ventilated homes can have a disastrous health impact. Lack of ventilation can increase mould spores in the home and is one of the key triggers for asthma. Asthma Australia's report entitled 'Homes, health and asthma in Australia' found that 50 per cent of people reported some form of mould or dampness in their home in the last 12 months. The biggest barrier to taking action to remove, prevent or reduce the spread of mould was that people could not make the changes they would like because it was not their property. The report from Asthma Australia shows that more needs to be done to protect renters from the adverse health impacts of poorly ventilated homes.

Beyond health and energy bills we also want to make sure renters are not freezing in winter and baking in summer. A report from Better Renting in 2023 measured the real-time temperatures in renters' homes. Their data showed that the average temperature inside these homes was 12.9 degrees, with 90 per cent of participants having a median temperature below the 18 degrees recommended by the World Health Organization. The report includes comments from renters, including this one from Jasmine in Unley:

My home is very cold during the winter, the indoor temperature is barely any warmer than outside. It's really difficult to warm up the living space.

There was another from Emily in Mount Barker:

My bed and my kids beds have flannelette sheets and 2 high warmth winter weight quilts on each bed and it's still freezing. I washed my daughter's school jumper and hung it inside, 3 days later it's still wet.

Or there was this one from Coromandel Valley:

I can't do anything except huddle under the blankets. It takes over my life.

Similarly, in summer renters just cannot keep cool without sufficient ventilation or cooling in their homes. This bill addresses this by ensuring there is sufficient heating and cooling in all rentals.

It would be remiss, of course, for me as a Green not to mention climate change as part of this problem. We know those in lower socio-economic circumstances are the ones being left behind in the transition to renewable energy, and they find it the hardest to adapt to the changes we are seeing as a result of our climate. Improved home energy efficiency will help South Australia to reach its target to reduce emissions and will help climate-proof renters' homes.

Just to give a very brief summary of some of the elements of the bill, the minimum energy standards would ensure that any new residential tenancy agreement would comply with standards for heating, cooling, roof insulation, ventilation and energy-efficient appliances. The landlord would be required to disclose to the tenant the standard of the property in relation to those standards to ensure tenants know what they are getting into when they enter into an agreement. A penalty would apply for noncompliance with the standards and for failing to disclose.

All appliances which use water must comply with ratings as established under the Water Efficiency Labelling and Standards Scheme (WELS) rating, and there would need to be an assurance that they are of a minimum three-star rating. All rentals need to be fitted with an energy efficient heater and cooler. Roof insulation would need to comply with the minimum standards under the federal Building Code.

Under the bill, chimneys, windows, door exhaust fans and ceiling vents must be maintained to prevent drafts and external windows must have flyscreens. It seems like a no-brainer to expect that a property would have flyscreens but, sadly, many do not, but this is vital to allow for ventilation to prevent mould and damp, and also prevents drafts that create high energy bills. These are not unusual or new ideas. In 2017, the South Australian government released a discussion paper on minimum housing standards. Victoria and the ACT both already have them. It works for them and it can work here.

I commend this bill to all sides of politics. The Greens were very proud to work with the Malinauskas government on the biggest reforms to the Residential Tenancies Act in a generation. We passed those changes last year and they are delivering real change for renters in South Australia, but we need to go further, particularly in the middle of this housing crisis. This bill, I think, is a really important part of the puzzle in terms of improving the lives of people who are renting in South Australia.

Debate adjourned on motion of Hon. I.K. Hunter.