Residential Tenancies (Rent Freeze) Amendment Bill 2024 (SA)

South Australia Residential Tenancies (Rent Freeze) Amendment Bill 2024 A Bill For An Act to amend the Residential Tenancies Act 1995.

Contents Part 1—Preliminary 1 Short title Part 2—Amendment of Residential Tenancies Act 1995 2 Insertion of Part 4 Division 2A Division 2A—Maximum rent payable for residential tenancies 52AA Meaning of rent freeze period 52AB Rent freeze 52AC Maximum rent payable for premises not let during period of 1 January 2023 to 1 January 2024 52AD Maximum increase in amount of rent payable after rent freeze period 52AE Commissioner must keep register of rents for residential tenancies 52AF Commissioner may require landlord to give information about rent payable under residential tenancy agreement 52AG Tribunal may determine amount of rent for residential premises 52AH Landlord may apply to Tribunal to increase maximum rent amount for residential premises 3 Insertion of Part 7 Division 2A Division 2A—Maximum rent payable for rooming house agreements 105AA Meaning of rent freeze period 105AB Rent freeze 105AC Maximum rent payable for accommodation at rooming house not let during period of 1 January 2023 to 1 January 2024 105AD Maximum increase in amount of rent payable after rent freeze period 105AE Commissioner must keep register of rents for rooming houses 105AF Commissioner may require proprietor to give information about rent payable under rooming house agreement 105AG Tribunal may determine amount of rent for rooming house agreement 105AH Proprietor may apply to Tribunal to increase maximum rent amount for accommodation at rooming house

The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Residential Tenancies (Rent Freeze) Amendment Act 2024.

Part 2—Amendment of Residential Tenancies Act 1995 2—Insertion of Part 4 Division 2A Part 4—after Division 2 insert: Division 2A—Maximum rent payable for residential tenancies 52AA—Meaning of rent freeze period For the purposes of this Division, the rent freeze period is the period of 2 years beginning from the commencement of this section. 52AB—Rent freeze (1) The maximum amount of rent payable (the maximum rent payable) for premises under a residential tenancy agreement during the rent freeze period is— (a) the amount of rent payable for the premises under a residential tenancy agreement on 1 January 2024; or (b) if the premises were not the subject of a residential tenancy agreement on 1 January 2024, the highest of the following amounts: (i) the amount of rent payable for the premises on the last day the premises were the subject of a residential tenancy agreement after 1 January 2023; (ii) the amount of rent stated in an offer of a residential tenancy for the premises by the landlord or landlord's agent in an advertisement or other public offer published after 1 January 2024 but prior to the commencement of this section; (iii) the amount of rent for the premises worked out under section 52AC; or (c) the amount set by the Tribunal pursuant to section 52AH. (2) During the rent freeze period, a landlord or landlord's agent must not— (a) require payment of, or take, an amount for rent under a residential tenancy agreement that is greater than the maximum rent payable for the premises; or (b) offer a residential tenancy for premises for an amount of rent that is greater than the maximum rent payable for the premises; or (c) for residential premises that have been let under a residential tenancy agreement at any time on or after 1 January 2024—give, or offer to give, the right of occupancy for the premises under a short-term letting agreement for an amount of rent that is more than the maximum rent payable for a residential tenancy of the premises. Maximum penalty: $7 500. (3) During the rent freeze period, a provision of a residential tenancy agreement for premises which would operate automatically to increase the rent payable under the agreement to an amount greater than the maximum rent payable for the premises instead operates to increase the rent payable to an amount equal to the maximum rent payable. (4) In this section— short-term letting agreement means an agreement— (a) under which the right to occupy residential premises is given on a short-term basis; and Note— For example, for holiday purposes. (b) that is not a residential tenancy agreement to which this Act applies. 52AC—Maximum rent payable for premises not let during period of 1 January 2023 to 1 January 2024 (1) This section applies in relation to residential premises if the premises were not let under a residential tenancy agreement during the period starting on 1 January 2023 and ending on 1 January 2024. (2) For the purposes of section 52AB(1)(b)(iii), the maximum rent payable for the premises is the amount of median rent, for the September quarter in 2023, for comparable residential premises located in an area that has the same postcode as the premises, published on the Commissioner's website. (3) In deciding whether residential premises are comparable to other residential premises, the following matters are to be considered: (a) the type of premises; (b) the number of bedrooms of the premises. (4) In this section— September quarter in 2023 means the period starting on 1 July 2023 and ending on 30 September 2023. 52AD—Maximum increase in amount of rent payable after rent freeze period (1) This section applies after the rent freeze period ends. (2) Subject to this Division, the maximum amount of rent payable (the maximum rent payable) for premises under a residential tenancy agreement during a 1-year rent period is the indexed rent amount for the premises for that period. (3) A landlord or landlord's agent must not— (a) require payment of, or take, an amount for rent under a residential tenancy agreement that is greater than the maximum rent payable for the premises; or (b) offer a residential tenancy for premises for an amount of rent that is greater than the maximum rent payable for the premises. Maximum penalty: $7 500. (4) Despite any other provision of this Act, a provision of a residential tenancy agreement for premises which would operate automatically to increase the rent payable under the agreement to an amount greater than the maximum rent payable for the premises instead operates to increase the rent payable to an amount equal to the maximum rent payable. (5) In this section— 1-year rent period means each period of 1 year that starts— (a) on the day after the last day of the rent freeze period; or (b) on each anniversary of the day mentioned in paragraph (a); CPI means the Consumer Price Index (All Groups) for the City of Adelaide published by the Australian Bureau of Statistics; indexed rent amount for premises under a residential tenancy agreement is the amount determined by multiplying— (a) in the case of the 1-year rent period that starts on the day after the rent freeze period—the maximum rent payable for the premises under the agreement during the rent freeze period under section 52AB; or (b) in any other case—the maximum amount of rent payable for the premises under the agreement during the previous 1-year rent period, by the relevant indexation factor (with the result being rounded up to the nearest dollar); relevant indexation factor means the quotient obtained by dividing the CPI for the quarter ending 30 September in the year immediately preceding the year for which the indexed rent amount is to be determined by the CPI for the quarter ending 30 September 2023. 52AE—Commissioner must keep register of rents for residential tenancies (1) The Commissioner must, in relation to premises the subject of residential tenancy agreements, keep a register of— (a) the amount of rent payable for the premises under a residential tenancy agreement; and (b) the maximum rent payable for the premises under a residential tenancy agreement. (2) A landlord must, within 48 hours of receiving an amount paid by way of a bond for a residential tenancy agreement, notify the Commissioner, in the manner determined by the Commissioner, of the amount of rent payable for the premises under the residential tenancy agreement. (3) The Commissioner may publish information about rents kept in the register. (4) However, the Commissioner must not publish information kept in the register about a person's affairs, including a person's name or residential address. 52AF—Commissioner may require landlord to give information about rent payable under residential tenancy agreement (1) The Commissioner may, by notice in writing, require a landlord to provide the Commissioner with such information as the Commissioner may require for the purposes of keeping the register under section 52AE. (2) A landlord must comply with a notice given under subsection (1) by giving the Commissioner the information required by the Commissioner by the day specified in the notice (which must be at least 21 days from the day the notice is given). Maximum penalty: $2 500. 52AG—Tribunal may determine amount of rent for residential premises (1) A tenant under a residential tenancy agreement may apply to the Tribunal for a declaration about the maximum rent payable for the premises under the agreement. (2) The Tribunal may make an order declaring the maximum rent payable for the premises under the residential tenancy agreement. (3) If the rent payable for the premises under the residential tenancy agreement is greater than the maximum rent payable for the premises, the Tribunal may make 1 or more of the following orders: (a) an order reducing the amount of rent payable to an amount that is not greater than the maximum rent payable for the premises; (b) an order that the landlord reimburse the tenant, not less than 30 days after the order is made, any amount of rent charged that was greater than the maximum rent payable for the premises. 52AH—Landlord may apply to Tribunal to increase maximum rent amount for residential premises (1) A landlord under a residential tenancy agreement may apply to the Tribunal for an order increasing the maximum rent payable for premises under the agreement, whether during the rent freeze period or afterwards. (2) In deciding whether to make an order under this section, the Tribunal must have regard to— (a) whether additional services, facilities or goods are to be provided to a tenant under the residential tenancy agreement compared to when the maximum rent payable was set; and (b) whether the amenity or standard of the premises has increased substantially since the maximum rent payable was set; and (c) whether the amount of statutory charges payable by the landlord for a year for the premises has increased by more than 20% since the maximum rent payable was set; and (d) whether the financial circumstances of the landlord have changed since the maximum rent payable was set; and (e) the proposed increased maximum rent payable compared to the current maximum rent payable; and (f) the state of repair of the premises; and (g) the potential impact of an increase in the maximum rent payable on a tenant under the residential tenancy agreement. (3) If the Tribunal finds, on an application under this section, that it is just in the circumstances to order an increase in the maximum rent payable for premises under a residential tenancy agreement, the Tribunal may, by order— (a) fix the maximum rent payable for the premises; and (b) fix a date (which cannot be before the date of the application) from which the variation takes effect. (4) Without limiting the Tribunal's powers, the Tribunal may make an interim order about the maximum rent payable for premises under a residential tenancy agreement pending its final decision on the application. 3—Insertion of Part 7 Division 2A Part 7—after Division 2 insert: Division 2A—Maximum rent payable for rooming house agreements 105AA—Meaning of rent freeze period For the purposes of this Division, the rent freeze period is the period of 2 years beginning from the commencement of this section. 105AB—Rent freeze (1) The maximum amount of rent payable (the maximum rent payable) for accommodation at a rooming house under a rooming house agreement during the rent freeze period is— (a) the amount of rent payable for the accommodation under a rooming house agreement on 1 January 2024; or (b) if the accommodation was not the subject of a rooming house agreement on 1 January 2024, the highest of the following amounts: (i) the amount of rent payable for the accommodation on the last day the accommodation was the subject of a rooming house agreement after 1 January 2023; (ii) the amount of rent stated in an offer in respect of the accommodation by the proprietor or proprietor's agent in an advertisement or other public offer published after 1 January 2024 but prior to the commencement of this section; (iii) the amount of rent for the accommodation at the rooming house worked out under section 105AC; or (c) the amount set by the Tribunal pursuant to section 105AH. (2) During the rent freeze period, a proprietor or proprietor's agent must not— (a) require payment of, or take, an amount for rent under a rooming house agreement that is greater than the maximum rent payable for the accommodation at the rooming house; or (b) offer accommodation at a rooming house under a rooming house agreement for an amount of rent that is greater than the maximum rent payable for the accommodation. Maximum penalty: $7 500. (3) During the rent freeze period, a provision of a rooming house agreement for accommodation at a rooming house which would operate automatically to increase the rent payable under the agreement to an amount greater than the maximum rent payable for the accommodation instead operates to increase the rent payable to an amount equal to the maximum rent payable. 105AC—Maximum rent payable for accommodation at rooming house not let during period of 1 January 2023 to 1 January 2024 (1) This section applies in relation to accommodation at a rooming house if there was not a rooming house agreement for the accommodation during the period starting on 1 January 2023 and ending on 1 January 2024. (2) For the purposes of section 105AB(1)(b)(iii), the maximum rent payable for the accommodation at the rooming house is the amount of median rent, for the September quarter in 2023, for comparable accommodation at a rooming house located in an area that has the same postcode as the rooming house, published on the Commissioner's website. (3) In this section— September quarter in 2023 means the period starting on 1 July 2023 and ending on 30 September 2023. 105AD—Maximum increase in amount of rent payable after rent freeze period (1) This section applies after the rent freeze period ends. (2) Subject to this Division the maximum amount of rent payable (the maximum rent payable) for accommodation at a rooming house under a rooming house agreement during a 1-year rent period is the indexed rent amount for the accommodation for that period. (3) A proprietor or proprietor's agent must not— (a) require payment of, or take, an amount for rent under a rooming house agreement that is greater than the maximum rent payable for the accommodation at the rooming house; or (b) offer accommodation at a rooming house under a rooming house agreement for an amount of rent that is greater than the maximum rent payable for the accommodation. Maximum penalty: $7 500. (4) Despite any other provision of this Act, a provision of a rooming house agreement for accommodation at a rooming house which would operate automatically to increase the rent payable under the agreement to an amount greater than the maximum rent payable for the accommodation instead operates to increase the rent payable to an amount equal to the maximum rent payable. (5) In this section— 1-year rent period means each period of 1 year that starts— (a) on the day after the last day of the rent freeze period; or (b) on each anniversary of the day mentioned in paragraph (a); CPI means the Consumer Price Index (All Groups) for the City of Adelaide published by the Australian Bureau of Statistics; indexed rent amount for accommodation at a rooming house under a rooming house agreement is the amount determined by multiplying— (a) in the case of the 1-year rent period that starts on the day after the rent freeze period—the maximum rent payable for the accommodation under the agreement during the rent freeze period under section 105AB; or (b) in any other case—the maximum amount of rent payable for the accommodation under the agreement during the previous 1-year rent period, by the relevant indexation factor (with the result being rounded up to the nearest dollar); relevant indexation factor means the quotient obtained by dividing the CPI for the quarter ending 30 September in the year immediately preceding the year for which the indexed rent amount is to be determined by the CPI for the quarter ending 30 September 2023. 105AE—Commissioner must keep register of rents for rooming houses (1) The Commissioner must, in relation to accommodation at rooming houses the subject of rooming house agreements, keep a register of— (a) the amount of rent payable for the accommodation at the rooming house; and (b) the maximum rent payable for the accommodation at the rooming house. (2) A proprietor must, within 48 hours of receiving an amount paid by way of a bond for a rooming house agreement, notify the Commissioner, in the manner determined by the Commissioner, of the amount of rent payable for the accommodation under the rooming house agreement. (3) The Commissioner may publish information about rents kept in the register. (4) However, the Commissioner must not publish information kept in the register about a person's affairs, including a person's name or residential address. 105AF—Commissioner may require proprietor to give information about rent payable under rooming house agreement (1) The Commissioner may, by notice in writing, require a proprietor to provide the Commissioner with such information as the Commissioner may require for the purposes of keeping the register under section 105AE. (2) A proprietor must comply with a notice given under subsection (1) by giving the Commissioner the information required by the Commissioner by the day specified in the notice (which must be at least 21 days from the day the notice is given). Maximum penalty: $2 500. 105AG—Tribunal may determine amount of rent for rooming house agreement (1) A resident under a rooming house agreement may apply to the Tribunal for a declaration about the maximum rent payable for the accommodation under the agreement. (2) The Tribunal may make an order declaring the maximum rent payable for the accommodation under the rooming house agreement. (3) If the rent payable for the accommodation under the rooming house agreement is greater than the maximum rent payable for the accommodation, the Tribunal may make 1 or more of the following orders— (a) an order reducing the amount of rent payable to an amount that is not greater than the maximum rent payable for the accommodation; (b) an order that the proprietor reimburse the resident, not less than 30 days after the order is made, any amount of rent charged that was greater than the maximum rent payable for the accommodation. 105AH—Proprietor may apply to Tribunal to increase maximum rent amount for accommodation at rooming house (1) A proprietor under a rooming house agreement may apply to the Tribunal for an order increasing the maximum rent payable for the accommodation under the agreement, whether during the rent freeze period or afterwards. (2) In deciding whether to make an order under this section, the Tribunal must have regard to— (a) whether additional services, facilities or goods are to be provided to a resident under the rooming house agreement compared to when the maximum rent payable was set; and (b) whether the amenity or standard of the accommodation under the rooming house agreement has increased substantially since the maximum rent payable was set; and (c) whether the amount of statutory charges payable by the proprietor for a year for the rooming house has increased by more than 20% since the maximum rent payable was set; and (d) whether the financial circumstances of the proprietor have changed since the maximum rent payable was set; and (e) the proposed increased maximum rent payable compared to the current maximum rent payable; and (f) the state of repair of the rooming house; and (g) the potential impact of an increase in the maximum rent payable on a resident under the rooming house agreement. (3) If the Tribunal finds, on an application under this section, that it is just in the circumstances to order an increase in the maximum rent payable for the accommodation under a rooming house agreement, the Tribunal may, by order— (a) fix the maximum rent payable for the accommodation; and (b) fix a date (which cannot be before the date of the application) from which the variation takes effect. (4) Without limiting the Tribunal's powers, the Tribunal may make an interim order about the maximum rent payable for the accommodation under a rooming house agreement pending its final decision on the application.