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TASMANIA
__________
RESIDENTIAL TENANCY (RENTAL MARKET REFORM)
AMENDMENT BILL 2021
__________
CONTENTS
1. Short title
2. Commencement
3. Principal Act
4. Section 8 amended (General functions and powers of Commissioner)
5. Section 11 amended (Expiry)
6. Section 12 amended (Extension and renewal)
7. Section 20 repealed
8. Section 23 repealed
9. Part 2, Division 2A inserted
Division 2A - Rent increases
24C. Definitions in relation to rent increases
24D. Standard residential tenancy term - rent increase
24E. Limitation on rent increases
24F. Tenant may apply for review
24G. Waiver of notice requirements
24H. Freezing rents
24I. Guidelines for orders
24J. Orders
24K. Effect of orders
[Bill ]
24L. Further increases
24M. Reduction of existing rent
24N. Tenant or owner may apply to court for review of proposed rent increase
24O. Tenant or owner may apply to court for review of rent reduction order
10. Section 36OA inserted
36OA. Energy efficiency standards
11. Part 3C inserted
PART 3C - KEEPING OF PETS
36Q. Tenants may keep pet on premises
36R. Process for tenant seeking consent for pets
36S. Owner may apply to Commission for refusal of pets
36T. Limitation on owner's liability in regard to pets
12. Section 42 amended (Notice to vacate by owner)
13. Section 43 amended (Effect of notice to vacate)
14. Section 56 amended (Right of entry)
15. Section 64B repealed
16. Repeal of Act
2
3
RESIDENTIAL TENANCY (RENTAL MARKET REFORM)
AMENDMENT BILL 2021
(Brought in by Cassandra Stanwell O'Connor MP)
A BILL FOR
An Act to amend the Residential Tenancy Act 1997 for the purposes
of regulating rent increases, abolishing no cause evictions,
introducing minimum energy standards, and requiring reasonable
grounds for refusing pets
Be it enacted by Her Excellency the Governor of Tasmania, by and with
the advice and consent of the Legislative Council and House of
Assembly, in Parliament assembled, as follows:
1. Short title
This Act may be cited as the Residential Tenancy (Rental
Market Reform) Amendment Act 2021.
2. Commencement
This Act commences on the day on which this Act
receives the Royal Assent.
3. Principal Act
In this Act, the Residential Tenancy Act 1997* is referred
to as the Principal Act.
*No. 82 of 1997
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4. Section 8 amended (General functions and powers of
Commissioner)
(1) Section 8(1)(d) of the Principal Act is amended by
omitting "section 23" and substituting "Division 2A
of Part 2".
(2) Section 8(2) of the Principal Act is amended by
omitting "section 23" and substituting "Division 2A
of Part 2".
5. Section 11 amended (Expiry)
Section 11 of the Principal Act is amended by -
(a) omitting subsection (2) and substitution the
following subsection -
"(2) If a residential tenancy
agreement for a fixed period in
relation to premises expires on a
date, and before that date the
residential tenancy agreement is
not extended or renewed, the
residential tenancy agreement is
deemed to be extended for no
fixed period on that date in
relation to the premises."
(b) omitting subsections (4), (5) and (6).
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6. Section 12 amended (Extension and renewal)
Section 12 of the Principal Act is amended by omitting
subsection (1).
7. Section 20 repealed
Section 20 of the Principal Act is repealed.
8. Section 23 repealed
Section 23 of the Principal Act is repealed.
9. Part 2, Division 2A inserted
After section 24B of the Principal Act, the following
Division is inserted in Part 2:
Division 2A - Rent increases
24C. Definitions in relation to rent increases
In this Division -
Australian Statistician means the Australian
Statistician referred to in section 5(2) of
the Australian Bureau of Statistics Act
1975 of the Commonwealth and includes
any person to whom the powers of the
Australian Statistician under section 12 of
the Census and Statistics Act 1905 of the
Commonwealth have been delegated; and
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index number means the rents component of
the housing group of the Consumer Price
Index for Hobart published from time to
time by the Australian statistician; and
rent increase means an increase the amount of
the rent payable by a tenant in respect of a
residential premises; and
rent increase limit is the amount worked as
follows:
PI
PI +
10
where -
PI is the percentage increase in the index
number over the period since the last rent
increase or since the beginning of the
residential tenancy agreement (whichever
is later); and
rent reduction order means an order for the
reduction in the rent payable under a
residential tenancy agreement issued
under section 24M(1).
24D. Standard residential tenancy term - rent increase
(1) Under a fixed term lease a rent increase may not
occur during the fixed term unless the amount of
the rent increase, or a method for working it out, is
set out in the agreement.
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(2) A rent increase in respect of a residential tenancy
agreement may only take effect from a day that is
more than 60 days after the day on which the notice
is given and is a day that is -
(a) not less than 12 months after the
residential tenancy agreement
commenced or was extended or renewed;
or
(b) if rent has been previously increased,
more than 12 months after the last
increase.
24E. Limitation on rent increases
(1) An owner may cause a rent increase by an amount
that is more than the rent increase limit only if -
(a) the residential tenancy agreement allows
a rent increase by that amount; or
(b) after the owner gives notice under
subsection (2), the tenant agrees, in
writing, to the rent increase; or
(c) the owner obtains the Commissioner's
prior approval.
(2) For subsection (1) (b), the owner must give the
tenant a written notice stating -
(a) the day the proposed rent increase takes
effect (being a day at least 60 days after
the day on which the notice is given);
and
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(b) the amount of the proposed rent increase;
and
(c) whether the amount of the proposed rent
increase is more than the rent increase
limit; and
(d) if the proposed rent increase is more than
the rent increase limit - that if the tenant
does not agree to the rent increase, the
owner may only make the proposed rent
increase with the prior approval of the
Commissioner.
24F. Tenant may apply for review
(1) A tenant may apply to the Commissioner for
review of a proposed rent increase.
(2) An application must be made not less than 14 days
before the day on which the proposed rent increase
is to come into effect.
24G. Waiver of notice requirements
(1) The Commissioner may hear an application for the
review of a rent increase even though the
application is made less than 14 days before the
day when the proposed rent increase is to come into
effect, if the Commissioner is satisfied that -
(a) the application is late because of special
circumstances; and
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(b) to hear the application will not place the
owner in a significantly worse position
than the owner would have been had the
applicant applied as prescribed.
24H. Freezing rents
If an application for review of a rent increase has
been made but not decided, no rent increase
happens unless allowed by the Commissioner.
24I. Guidelines for orders
(1) This section applies if an application is made to the
Commissioner under sections 24E(1)(c) or 24F(1)
in relation to a rent increase.
(2) The Commissioner must allow a rent increase if the
rent increase is allowed under the residential
tenancy agreement and is not unreasonable.
(3) For the purposes of subsection (2) -
(a) unless the tenant satisfies the
Commissioner otherwise, a rent increase
is not unreasonable if it is equal to or less
than the rent increase limit; and
(b) unless the owner satisfies the
Commissioner otherwise, a rent increase
is unreasonable if it is more than the rent
increase limit.
(4) If a tenant or owner proposes that a rent increase is
or is not unreasonable, the Commissioner, in
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considering whether he or she is satisfied about the
proposal, must consider the following matters:
(a) the amount of rent payable before the
proposed rent increase;
(b) if the owner previously issued a rent
increase while the relevant tenant was
tenant -
(i) the amount of the last rent
increase before the proposed
rent increase; and
(ii) the period since that rent
increase;
(c) outgoings or costs of the owner in
relation to the premises;
(d) services provided by the owner to the
tenant;
(e) the value of fixtures and goods supplied
by the owner as part of the tenancy;
(f) the state of repair of the premises;
(g) rental rates for comparable premises;
(h) the value of any work performed or
improvements carried out by the tenant
with the owner's consent;
(i) any other matter the Commissioner
considers relevant.
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(5) If the Commissioner considers a proposed rent
increase is unreasonable, but a lesser rent increase
would not be, it may disallow so much of the rent
increase as is unreasonable.
24J. Orders
(1) The Commissioner may make the following orders
in relation to an application to allow or to review a
rent increase:
(a) an order allowing the rent increase
applied for, or another rent increase that
the Commissioner considers just;
(b) an order disallowing the rent increase;
(c) an order disallowing part of the rent
increase.
(2) The Commissioner must, as soon as practicable
after making an order under this section, notify a
tenant and owner in respect of a premises of the
order.
24K. Effect of orders
(1) If the Commissioner makes an order under section
24J(1)(a) or (c), the rent increase takes effect from
the date when the proposed rent increase would,
apart from section 24H, have taken place.
(2) The Commissioner may, on application, grant a
tenant time to pay rent owed because of the
operation of subsection (1).
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(3) If -
(a) the Commissioner makes an order
mentioned in section 24J(1)(b) or (c);
and
(b) despite section 24H, the tenant has paid
the owner the full amount of the rent
increase proposed by the owner;
the Commissioner may order the owner to pay to
the tenant the difference between the amount the
tenant paid to the owner and the amount that was
payable.
24L. Further increases
If a proposed rent increase has been reviewed by
the Commissioner, any further purported rent
increase for a period of 12 months after the day the
proposed rent increase was to take effect is void.
24M. Reduction of existing rent
(1) A tenant may apply to the Commissioner for an
order for a reduction in the rent payable under a
residential tenancy agreement (a rent reduction
order).
(2) The Commissioner may make a rent reduction
order, or refuse to make a rent reduction order, in
accordance with this section.
(3) The Commissioner must issue a rent reduction
order under subsection (2) if it considers that the
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tenant's use or enjoyment of the premises has
diminished significantly as a result of any of the
following:
(a) the loss or diminished utility of an
appliance, furniture, a facility or a
service supplied by the owner with the
premises as a result of -
(i) the withdrawal of the
appliance, furniture, facility
or service by the owner; or
(ii) the failure by the owner to
maintain the premises and
any appliance, furniture or
facility supplied with the
premises in a reasonable state
of repair, having regard to
their condition at the
commencement of the
residential tenancy
agreement; or
(iii) the failure by the owner to
provide and maintain the
locks or other security
devices necessary to ensure
that the premises are
reasonably secure;
(b) the loss of the use of all or part of the
premises;
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(c) failure of the owner to comply with
minimum standards under Part 3B of this
Act;
(d) interference with the tenant's quiet
enjoyment of the premises or the tenant's
ability to use the premises in reasonable
peace, comfort and privacy by the owner
or anyone claiming through the owner or
having an interest in, or title to, the
premises.
(4) To remove any doubt and for subsection (3), a
tenant's quiet enjoyment of premises is interfered
with if there is substantial interference with, or a
significant lessening of freedom in exercising, the
tenant's rights.
(5) A rent reduction order under subsection (2) -
(a) takes effect from the day the tenant's use
or enjoyment of the premises diminished,
or a later date that the Commissioner
specifies; and
(b) remains in force for the period, not
longer than 12 months, specified by the
Commissioner.
(6) As part of a rent reduction order under subsection
(2), the Commissioner may order an owner to pay
to the tenant the difference between the rent paid
and the rent payable as a result of a rent reduction
order.
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(7) Any purported rent increase in relation to premises
for which a rent reduction order is in force is void,
and any amount paid above and beyond the
reduced rental rate in accordance with a purported
increase is a debt owing by the owner to the tenant.
(8) The Commissioner must, as soon as practicable
after making, or refusing to make, a rent reduction
order, notify a tenant and owner in respect of a
premises of the order or refusal.
24N. Tenant or owner may apply to court for review of
proposed rent increase
(1) If the Commissioner has made an order under
section 24J(1) in respect of a premises, a tenant or
an owner in respect of the premises may apply to
the Court for a review of the proposed rent
increase.
(2) An application may only be made under subsection
(1) by a tenant, or owner, in respect of premises
within the period of 60 days after the tenant, or
owner, is notified that the Commissioner has made
an order under section 24J(1) in respect of a
premises.
(3) If an application for a review of a proposed rent
increase is made under subsection (1) in respect of
a premises -
(a) any order made by the Commissioner
under section 24J(1) in relation to the
premises is of no effect, unless the
application is withdrawn; and
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(b) the Court is to determine the review as if
-
(i) the Commissioner had not
made an order under section
24J(1) in respect of the
premises; and
(ii) a reference in sections 24H,
24I, 24J, 24K and 24L to the
Commissioner were a
reference to the Court.
24O. Tenant or owner may apply to court for review of
rent reduction order
(1) If the Commissioner has, under section 24M(2),
made a rent reduction order, or refused to make a
rent reduction order, in respect of a premises, a
tenant or an owner in respect of the premises may
apply to the Court for a review of the rent reduction
order, or refusal of a rent reduction order.
(2) An application may only be made under subsection
(1) by a tenant or owner in respect of premises
within the period of 60 days after the tenant or
owner is notified that the Commissioner has, under
section 24M(2), made a rent reduction order, or
refused to make a rent reduction order, in respect of
a premises.
(3) If an application for a review is made under
subsection (1) in respect of a premises -
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(a) any rent reduction order made by the
Commissioner in relation to the premises
is of no effect, unless the application is
withdrawn; and
(b) the Court is to make a determination as if
-
(i) the Commissioner had not
made a determination under
section 24M(2); and
(ii) a reference in section 24M to
the Commissioner were a
reference to the Court.
10. Section 36OA inserted
After section 36O of the Principal Act, the following
Section is inserted in Part 3B:
36OA. Energy efficiency standards
(1) An owner must ensure that if an appliance, fitting
or fixture provided by the owner, in relation to a
premises, that uses or supplies water, electricity or
gas at the premises needs to be replaced, the
replacement has at least a rating that is of or above
a minimum level of rating in an efficiency rating
system.
(2) An owner is liable to pay for the cost of
water, electricity or gas supplied to or used at the
premises for as long as the owner is in breach of
subsection (1), or of any law requiring the use of an
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appliance, fitting or fixture with a rating that is of
or above a prescribed level of rating in the
efficiency rating system for the premises.
(3) For the purposes of this section, unless otherwise
prescribed, the following systems of rating the
efficiency of any appliances, fixtures and fittings
are efficiency rating system -
(a) for the water efficiency of an appliance,
fixture or fitting, the WELS scheme in
the Water Efficiency Labelling and
Standards Act 2005 of the
Commonwealth;
(b) for the energy efficiency of a non-ducted
air conditioner or heat pump, the
Minimum Energy Performance Standards
within the meaning of the Greenhouse
and Energy Minimum Standards Act
2012 of the Commonwealth and as
determined and tested in accordance with
AS/NZS 3823.2, "Performance of
electrical appliances--Air conditioners
and heat pumps Part 2: Energy labelling
and minimum energy performance
standards (MEPS) requirements",
as published from time to time and
AS/NZS 3823.1.1, "Performance of
electrical appliances--Airconditioners
and heat pumps Part 1.1: Non-ducted
airconditioners and heat pumps--Testing
and rating for performance", as published
from time to time;
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(c) for a dishwasher, the energy efficiency
system for energy as determined in
accordance with the Greenhouse and
Energy Minimum Standards
(Dishwashers) Determination 2015 of
the Commonwealth;
(d) for the energy efficiency of a gas space
heater, a determination in accordance
with AS/NZS 5263.1.3, "Gas Appliances
Part 1.3 Gas space heating appliances",
as amended and published from time to
time; and
(4) For the purposes of this section, unless otherwise
prescribed, the following levels of ratings are the
minimum level of rating -
(a) for any appliances, fixtures and fittings,
other than a dishwasher, which use or
supply water -
(i) a 3 star rating in the WELS
scheme in the efficiency
rating system referred to in
subsection (3)(a); or
(ii) if, because of the age, nature
or structure of the plumbing
in the rented premises, a
replacement with a 3 star
rating referred to in
subparagraph (i) cannot be
installed or, when installed
will not operate effectively -
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the highest rating in the
efficiency rating system
referred to in subsection
(3)(a) of a replacement that
will operate effectively;
(b) for a dishwasher--
(i) the levels of ratings provided for
under subsection (4)(a); and
(ii) a 3 star rating in the efficiency
rating system referred to in
subsection (3)(c);
(c) for a non-ducted air conditioner or heat
pump--
(i) in a Class 1 building, a 2 star
heating rating in the efficiency
rating system referred to
subsection (3)(b); or
(ii) in a Class 2 building, a 2 star
heating rating in the efficiency
rating system referred to in
subsection (3)(b), unless it would
be unreasonable to install the
non-ducted air conditioner or heat
pump;
(d) for a gas space heater--
(i) in a Class 1 building, a 2 star
heating rating in the efficiency
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rating system referred to in
subsection (3)(d); or
(ii) in a Class 2 building, a 2 star
heating rating in the efficiency
rating system referred to in
subsection (3)(d) unless it would
be unreasonable to install the gas
space heater.
(5) For the purposes of subsection (4)(c)(ii) and (d)(ii)
it would be unreasonable to install an air
conditioner, heat pump or gas space heater if--
(a) the cost of installation would be
significantly higher than the average
price of installation in a Class 2 building;
or
(b) owners corporation rules prohibit
installation of the appliance; or
(c) compliance with any other Act makes the
cost of installation prohibitive.
(6) Nothing in this section prevents the use of an
appliance, fixture or fitting of a level of rating
above the minimum level of rating.
(7) For the purposes of this section -
Building Code of Australia means the code
produced by the Australian Building Codes
Board relating to the design and
construction of buildings;
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Class 1 building has the same meaning as it has
in the Building Code of Australia; and
Class 2 building has the same meaning as it has
in the Building Code of Australia.
11. Part 3C inserted
After section 36P of the Principal Act, the following Part is
inserted:
PART 3C - KEEPING OF PETS
36Q. Tenants may keep pet on premises
(1) The tenant may keep a pet, or allow a pet to be
kept, on the premises.
(2) The residential tenancy agreement may require the
tenant to obtain the owner's prior written consent
to keep a pet, or allow a pet to be kept, on the
premises.
(3) The tenant is responsible for any repairs or
additional maintenance to the premises required as
a consequence of keeping a pet on the premises.
36R. Process for tenant seeking consent for pets
(1) If, as provided for under section 36Q(2), a
residential tenancy agreement requires a tenant to
obtain an owner's consent to keep a pet on the
premises, the tenant may apply, in writing, to the
owner for the owner's consent.
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(2) An owner may refuse consent to an application
under subsection (1) only if the owner obtains the
Commissioner's prior approval.
(3) An owner may impose a condition on consent to an
application under subsection (1) -
(a) if the condition is a reasonable condition
about -
(iii) the number of animals kept
on the premises; or
(iv) the cleaning or maintenance
of the premises; or
(b) with the prior approval of the
Commissioner under section 36S.
(4) An owner is taken to consent to a tenant's
application under subsection (1) unless, within 14
days of receiving the application, the owner applies
to the Commissioner under section 36S.
36S. Owner may apply to Commission for refusal of
pets
(1) An owner may apply to the Commissioner for an
order approving -
(a) the owner's refusal of the tenant's
application under section 36R(1) to keep
a pet on the premises; or
(b) a condition on the owner's consent to the
tenant's application.
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(2) The Commissioner must -
(a) approve the owner's application; or
(b) refuse the owner's application; or
(c) order that the owner consent to the
tenant's application but impose stated
conditions on the consent.
(3) The Commissioner may make an order under
subsection (2) (a) or (c) if satisfied -
(a) the premises are unsuitable to keep the
pet; or
(b) keeping the pet on the premises would
result in unreasonable damage to the
premises; or
(c) keeping the pet on the premises would be
an unacceptable risk to public health or
safety; or
(d) the owner would suffer significant
hardship; or
(e) keeping the pet on the premises would be
contrary to a law of the State.
36T. Limitation on owner's liability in regard to pets
The owner has no additional duty of care to a
person arising from any consent given or required
under section 36R(4).
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12. Section 42 amended (Notice to vacate by owner)
Section 42(1) of the Principal Act is amended by:
(a) omitting paragraph (d); and
(b) omitting paragraph (dd).
13. Section 43 amended (Effect of notice to vacate)
Section 43 of the Principal Act is amended by omitting
paragraph (c) from subsection (1).
14. Section 56 amended (Right of entry)
Section 56 of the Principal Act is amended by omitting
paragraph (b) from subsection (4).
15. Section 64B repealed
Section 64B of the Principal Act is repealed.
16. Repeal of Act
This Act is repealed on the three hundred and sixty fifth
day from the day on which all of the provisions of this Act
commence.