Page 585 - Week 02 - Thursday, 21 February 2019
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how they make a house a home—again with independent oversight to help resolve difficult cases.
The final set of amendments promotes model behaviour by landlords when it comes to rental increases and tenancy termination. The amendments directly support the housing strategy objective of strengthening rights and protections for tenants. One of the ways the bill does this is by making break-lease fees fairer for tenants. Currently, the break-lease clause is optional but it is included in most fixed term tenancies. Under the existing arrangement, if a tenant ends the lease for a reason that is not provided in the act, they will be liable for a break-lease fee. In most cases this is between four and six weeks rent, depending on how much time has passed. The bill amends that clause to limit the fees payable to the actual loss experienced by the landlord.
The bill will also introduce a fairer process for negotiating rental increases. The bill provides that if a landlord wishes to increase the rent above a prescribed amount, which will be set by regulation, and the tenant does not agree, it is the landlord who must seek approval from the tribunal. That prescribed amount will be set at the consumer price index, plus 10 per cent of that index. Tenants can also apply for a review of the rental increase if they wish to do so, but shifting the burden makes the system fairer and increases the independent oversight that will be available in relation to rental increases.
In conclusion, the amendments in this bill are a result of very close consultation with government and community stakeholders. I would especially like to thank the Tenants Union ACT, Canberra Community Law, the Real Estate Institute of the ACT, ACT Shelter, the ACT Civil and Administrative Tribunal and others for their engagement. Their immense practical experience has informed the bill in many respects, and I look forward to collaboration with them on future work.
I know that this is an issue where there is a broad spectrum of opinions, and it is important for us to make sure that the voices of the people that work in this space are acknowledged and heard. I am pleased that these reforms have been the subject of much interest in the media and the community. This shows the importance of getting rental laws right, which I am confident that this bill does. This bill will make renting better and fairer, and I commend it to the Assembly.
Question resolved in the affirmative.
Bill agreed to in principle.
Detail stage
Clause 1.
Debate interrupted in accordance with standing order 74 and the resumption of the debate made an order of the day for a later hour.
Sitting suspended from 12.04 to 2.00 pm.
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