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RESIDENTIAL TENANCIES (AMENDMENT) BILL 2003

                                                             Residential Tenancies (Amendment) Bill
Victorian Legislation and Parliamentary Documents




                                                                              Circulation Print

                                                                   EXPLANATORY MEMORANDUM


                                                                                    Clause Notes
                                                    Clause 1    sets out the purpose of the Bill.

                                                    Clause 2    is the commencement provision. It provides that the Bill comes
                                                                into operation on a day or days to be proclaimed and that if it
                                                                does not come into operation before 1 July 2004, it comes into
                                                                operation on that day.

                                                    Clause 3    states that in this Bill, the Residential Tenancies Act 1997 is
                                                                called the Principal Act.

                                                    Clause 4    inserts a definition of "Director of Housing voucher" into section
                                                                404 of the Principal Act. A Director of Housing voucher is a
                                                                voucher issued by the Director of Housing or his or her agent for
                                                                the payment of an amount of bond on behalf of a tenant. This is
                                                                necessary as clause 7 of the Bill amends the Principal Act to
                                                                provide that a bond or amount of bond may be paid in the form of
                                                                a Director of Housing voucher.

                                                    Clause 5    amends section 405(2) of the Principal Act to clarify that this
                                                                section applies where the Director of Housing or his or her agent
                                                                has paid the bond on behalf of a tenant, whether in full or in part.

                                                    Clause 6    amends section 407(1)(c) of the Principal Act to clarify that this
                                                                section (which requires the Residential Tenancies Bond
                                                                Authority to issue receipts) also applies where the Director of
                                                                Housing or his or her agent has paid the bond on behalf of a
                                                                tenant, whether in full or in part.

                                                    Clause 7    makes a number of amendments to section 410A of the Principal
                                                                Act.
                                                                Clause 7(1) inserts the words "Director of Housing voucher" in
                                                                the heading to section 410A of the Principal Act to signify that
                                                                bonds may now be paid using Director of Housing vouchers.



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                                                    551100                                          BILL LA CIRCULATION 10/10/2003

 


 

Clause 7(2) substitutes section 410A(1) of the Principal Act to provide that a bond can be paid by a tenant to a landlord (without limiting the manner in which a bond may be paid) in one of the Victorian Legislation and Parliamentary Documents following forms-- · a cheque made payable to the Residential Tenancies Bond Authority; or · a money order made payable to the Residential Tenancies Bond Authority; or · a Director of Housing voucher; or · a combination of 2 or more of the above forms. Clause 8 amends section 411 of the Principal Act to insert new paragraph (d). This paragraph provides that in relation to an amount of bond paid on behalf of a tenant by the Director of Housing or his or her agent, the Residential Tenancies Bond Authority can only pay out such an amount of bond in accordance with-- · a determination of the Victorian Civil and Administrative Tribunal or an order of a court; or · new section 411A which deals with certain bonds that are paid on behalf of tenants by the Director of Housing or his or her agent and are held by the Residential Tenancies Bond Authority on 30 June 2003; or · section 413(1) which deals with joint landlord and tenant applications for refunds of bonds; or · new section 413(1A) which deals with joint landlord and Director of Housing applications for refunds of bonds paid on behalf of tenants by the Director of Housing or his or her agent. Clause 9 inserts new section 411A to the Principal Act. This section provides that if, on 30 June 2003, the Residential Tenancies Bond Authority holds an amount of bond paid by the Director of Housing on behalf of a tenant, and the Authority receives a new bond in respect of the same premises and no application for the refund of the bond paid by the Director of Housing is made within 12 months of the date on which the new bond is received for the same premises, then the Authority may pay to the Director of Housing the amount of bond paid by the Director of Housing on behalf of the tenant, and may pay to the tenant a remaining amount of bond paid by the tenant in relation to the tenancy 2

 


 

agreement for which the Director of Housing paid an amount of bond. Victorian Legislation and Parliamentary Documents The purpose of this provision is to enable certain bonds paid by the Director of Housing in respect of tenancy agreements that have since terminated and which have not been claimed, to be refunded to the Director of Housing. Clause 10 amends section 412(6) of the Principal Act to make clear that the section does not apply to a bond paid on behalf of a tenant by the Director of Housing or his or her agent, irrespective of whether the bond is so paid in full or in part. Clause 11 makes a number of amendments to section 413 of the Principal Act. Clause 11(1) inserts new sub-section (1A). It relates to where an amount of bond is paid on behalf of a tenant by the Director of Housing or his or her agent, and a landlord is unable to obtain the tenant's agreement to make an application in accordance with section 413(1). In such circumstances, the new sub-section enables a landlord and the Director of Housing to apply jointly to the Residential Tenancies Bond Authority for a refund to the Director of Housing of the amount of bond paid on behalf of the tenant by the Director of Housing or his or her agent. Clause 11(2) inserts a new section 413(3) to the Principal Act, which provides that an application for any part of a bond to be paid to the landlord must not be made 7 days or more before the termination date of the tenancy agreement. Clause 12 inserts a new section 413A to the Principal Act to require the Residential Tenancies Bond Authority to notify the Director of Housing when the Residential Tenancies Bond Authority receives a new bond in relation to a tenancy agreement for the same premises for which the Residential Tenancies Bond Authority already holds an amount of bond paid on behalf of a tenant by the Director of Housing or his or her agent. Clause 13 makes a number of amendments to section 416 of the Principal Act. Clause 13(1) amends the heading to section 416 of the Principal Act to refer to the Director of Housing. This is to take account of the fact that the Director of Housing, instead of a tenant, may make an application to the Victorian Civil and Administrative Tribunal where an amount of bond has been paid on behalf of the tenant by the Director of Housing or his or her agent. 3

 


 

Clause 13(2) amends section 416(3) of the Principal Act to make clear that this section applies to bonds paid on behalf of tenants by the Director of Housing or his or her agent, whether in full or Victorian Legislation and Parliamentary Documents in part. Clause 14 amends sections 421(1) and 421(3) of the Principal Act to clarify that these provisions apply where the Director of Housing or his or her agent has paid the bond on behalf of a tenant, whether in full or in part. Clause 15 inserts new paragraph (aa) in section 427(1) of the Principal Act to require the Residential Tenancies Bond Authority, in relation to a bond lodgment form that states that an amount of bond has been paid by the Director of Housing or his or her agent on behalf of a tenant, to register that the Director of Housing has paid an amount of the bond, as well as the amount of the bond that the Director of Housing has so paid. Clause 16 inserts new paragraph (ca) in section 431 of the Principal Act to provide that it is a function of the Residential Tenancies Bond Authority to collect the information contained in bond lodgment forms given to the Authority, as well as other information that is kept by the Authority in relation to bonds it holds. Furthermore, new paragraph (cb) provides that it is a function of the Residential Tenancies Bond Authority to disclose to the Director of Housing all information (with the exception of any names) collected in relation to bonds, being the information referred to in new paragraph (ca). This is to enable the Director of Housing to use such information for research, compiling statistics and public education. 4

 


 

 


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