28 August 2024

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.

19 June 2024

The Hon. R.A. SIMMS (14:59): I seek leave to make a brief explanation before addressing a question without notice to the Leader of the Government in this place on the topic of housing affordability.

Leave granted.

The Hon. R.A. SIMMS: Last week, Demographia released their International Housing Affordability Report, which showed that Adelaide is now ranked amongst the least affordable housing markets in the world. Adelaide placed 86^th out of 94 international housing markets and was ranked as less affordable than Brisbane, Toronto, Greater London and even New York. The report classified Adelaide as being impossibly unaffordable and demonstrates that Adelaide's middle income housing affordability has steadily declined for the past 40 years, with a steeper drop in the last two years.

Labor has been in government in South Australia for 26 of the last 40 years, and the Labor Party has made a number of planning decisions that have impacted on the current state of the housing market. My question, therefore, to the Leader of the Government in this place is: how does the government justify the decline in Adelaide's housing affordability under Labor's watch and when does it expect to see an improvement in Adelaide's ranking—or does it expect us to sink even further?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:00): I thank the honourable member for his question. I don't think the affordability and supply of housing is an issue that is unique to a state that has seen more Labor governments in this century than it has Liberal governments. I think we are seeing all around the world, but particularly around Australia, the emergence of very tight housing supply, rapid increases in the price of housing and increases in rental prices paid for housing.

I know that the Premier, along with the Minister for Planning and Housing, the Hon. Nick Champion, has already outlined a number of initiatives, including some very significant land releases for new housing. I will be happy to go away and bring back a response to have input from the Minister for Housing and the Minister for Planning in much greater detail about many of the initiatives that this current Labor government is working on to tackle particularly housing supply that then feeds into the affordability of housing in the state.

The Hon. R.A. SIMMS (15:01): Supplementary: is the minister concerned to learn that we are less affordable than London and New York?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:01): I am aware of the survey. I think it was published last week in terms of housing affordability, that if I am remembering correctly is a function not just of the absolute price of housing but the percentage of income that is used for housing in different jurisdictions. Of course, that is why we are concentrating our efforts so closely on housing in South Australia.

The Hon. R.A. SIMMS (15:02): Supplementary arising from the original answer: if this is a national matter, how can the minister account for South Australia lagging further behind other states? What is going on here in SA? We have had Labor governments for 26 of the last 40 years. What are you doing wrong?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:02): I thank the honourable member for the question. As I said, it is an issue that is affecting and afflicting every state in the Commonwealth of Australia. The honourable member will have seen many initiatives that have already been released, and there will be more to come. I will be happy to get a response that will outline and detail a number of initiatives this Labor government has taken in relation to it.

The Hon. N.J. CENTOFANTI (Leader of the Opposition) (15:03): Supplementary: what money has been set aside in the budget specifically for water infrastructure to support these housing allotment developments?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:03): I thank the honourable member for her question. That is not a budget that is within my portfolio, but I will be more than happy to take that on notice and bring back a reply for the honourable member in relation to water infrastructure to support new housing.

4 June 2024

The Hon. R.A. SIMMS (15:29): I seek leave to make a brief explanation before addressing a question without notice to the minister representing the Minister for Planning on the topic of public housing.

Leave granted.

The Hon. R.A. SIMMS: Today, the ABC reported that more than 300 public housing residents at Seaton will be forced to move out of their homes during demolition and construction of new houses and townhouses as part of plans to redevelop the area. In Victoria earlier this year, public housing residents filed a class action against the Victorian Labor government over their plans to knock down and redevelop their homes. One of the residents involved in the Victorian class action said the process had:

…taken an emotional and physical toll on me and my community... We are still being kept in the dark. The government keeps telling public housing residents that they have plans, but they still haven't told us what the plans are. I don't know where I am going to be living or where I might end up, and the government isn't giving us the information we need to make decisions.

My questions to the Minister for Planning, therefore, are:

1. How does the government intend to accommodate public housing residents who are being forced out of their homes when housing vacancies are at a record low?

2. What is the government doing to support these people through the transition?

3. Can it assure the people of South Australia that it will not repeat the mistakes that have been made by the Victorian Labor government?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:31): I thank the honourable member for his questions. I will refer those to the minister in the other place and bring back a response.

27 August 2024

In reply to the Hon. R.A. SIMMS (4 June 2024).

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries): The Minister for Housing and Urban Development has advised:

The South Australian Housing Trust has a clear plan for the staged relocation of tenants within the Seaton redevelopment.

All tenants in the area have been written to, including those in the first stages of relocations, those that will move in future stages, and also a small group of tenants that are not required to move.

The South Australian Housing Trust has an extensive history and established policy, procedures and staff that cover relocation activities.

The tenants in the first stages of relocations will be contacted via phone to discuss their relocation and:

• the timeline for the relocation
• why they need to relocate
• explain the relocation process
• what support can be provided–including phone, gas and electricity connection fees, mail redirection for three months and reasonable moving costs
• tenant housing needs and preferences
• reasonable reimbursement of property improvements made by tenants
• any other questions or concerns.

As part of their tenancy agreement, the South Australian Housing Trust has the ability to relocate people in the circumstances of redevelopment.

Staff will work with tenants on a one to one basis to find a new public housing home that meets their needs.

The government appreciates the importance of tenants' existing property and understand that moving home can be a big change. For some tenants it is a real opportunity to move into better accommodation while others might feel anxious and worried.

The South Australian Housing Trust will support tenants and have established additional support services available in this situation.

Tenants can call 1300 918 814 for more information.

In the specific case of Seaton, the age and condition of the properties is impacting tenants as the property is no longer suitable for them.

The local staff have received a number of transfer requests from existing tenants, so for some, relocations will be a positive opportunity that better meets their housing needs.

14 May 2024

The Hon. R.A. SIMMS (15:17): I seek leave to make a brief explanation before addressing a question without notice to the minister representing the Treasurer on the topic of federal funding for homelessness.

Leave granted.

The Hon. R.A. SIMMS: Last week, the federal government announced that they would be providing $9.3 billion to states and territories over the next five years to provide support for people who are homeless, crisis support and to build and repair social housing stock. The move, however, has been criticised as being disingenuous, and I understand that there is no new money that is being allocated. Instead, this represents a business as usual model where the $9.3 billion allocated is simply an extension of the existing funding agreement that has been in place since the years of the Morrison government. My question to the minister representing the Treasurer therefore is:

1. Will South Australia be receiving any new housing funding from the commonwealth over the next five years?

2. What action has the government taken to advocate for more support from the federal government to address the cost-of-living crisis that is engulfing our state?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:18): I thank the honourable member for his question. I will be more than happy to pass those questions on to the Treasurer in the other place and bring back a reply for him.

27 August 2024

In reply to the Hon. R.A. SIMMS (14 May 2024).

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

Funding under the new National Agreement on Social Housing and Homelessness (NASHH) is effectively a continuation of the former National Housing and Homelessness Agreement (NHHA) with the only significant changes being the split between the specific homelessness and general housing components.

However, by signing up to the new agreement, South Australia became eligible for a share of the new $1 billion Housing Support Program (Priority Work Stream) funding. This funding will be used to support infrastructure projects that are currently limiting our ability to build more housing. South Australia's share of this is estimated at $67.4 million.

Throughout the negotiations for the NASHH, the government has made efforts to advocate for additional funding. This included representations to the Hon. Jim Chalmers, commonwealth Treasurer, from the Board of Treasurers (all state and territory treasurers) advocating for more funding under the NASHH.

1 May 2024

The Hon. R.A. SIMMS (15:14): I seek leave to make a brief explanation before addressing a question without notice to the minister representing the Treasurer on the topic of the Hutt St Centre's Aspire Program.

Leave granted.

The Hon. R.A. SIMMS: Data released by PropTrack today shows that Adelaide's house prices have increased more than any other capital city in Australia over the last year, at 13.99 per cent. In March, Domain's vacancy rate report showed that Adelaide has the lowest housing vacancy rate in the country, at 0.3 per cent, further pushing people into housing stress and, ultimately, homelessness. The Adelaide Zero Project's March 2024 figures show that 194 people are actively homeless in Adelaide, with 144 people sleeping rough.

This morning, on the steps of Parliament House, advocates were calling for an end to homelessness and better affordable housing options for our state. One homeless service, the Hutt St Centre's Aspire Program, helps people with medium and long-term case management to help get them out of homelessness. Since 2017, the program has seen 81 per cent of their 575 clients secure housing.

The Advertiser reported on 15 April that the Hutt St Centre chief executive officer, Chris Burns, is pleading with the state government to give assurances that it will keep funding the program. Last year, the government gave a 12-month extension in their budget; however, the future of this vital program is now unclear. The Advertiser reports that figures calculated show the program saved the government nearly $33 million—$33 million—in reduced hospital stays, criminal procedures and other services.

My question to the minister representing the Treasurer therefore is: will the government commit to funding the Aspire Program in this year's state budget, and what is the government doing to address the housing and homelessness crisis that is engulfing our state?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:16): I thank the honourable member for his question. I will refer that to the appropriate minister and bring back a reply for him.

In reply to the Hon. R.A. SIMMS

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

The Malinauskas government has provided funding for extensions of the Aspire program, firstly through an election commitment of $2.1 million and secondly with a further $1.695 million in the 2023-24 state budget. On top of this, the 2024-25 state budget included a further $5 million over four years to extend intake of the Aspire program for an additional three years.

In addition to the extending funding for the Aspire program, the new five-year National Agreement on Social Housing and Homelessness agreement will secure an estimated $625.05 million from the commonwealth government over the next five years. Of this amount, $126.69 million will be used to address homelessness. The state will also match this contribution, bringing the total funding for addressing homelessness to $256.38 million over the next five years.

The South Australian government has launched its Better Housing for South Australians Roadmap, which includes a comprehensive plan to deliver more social and affordable dwellings and provide better opportunities for those who are renting privately and buying a home. These initiatives are summarised below.

The state government has committed to delivering the first substantial increase to public housing in a generation. Former governments allowed public housing to gradually decline, resulting in longer waiting times for people who need help.

The state government is on track to deliver over 1,025 new homes and undertake 3,350 updates and upgrades to existing homes by 2026. The state government has also committed to stopping the sale of 580 public housing dwellings between 2022 and 2026.

30 April 2024

The Hon. R.A. SIMMS (15:25): I seek leave to make a brief explanation before asking a question of the Leader of the Government, the minister representing the Minister for Consumer and Business Affairs, on the topic of rental affordability.

Leave granted.

The Hon. R.A. SIMMS: Last week, Anglicare released its Anglicare Australia Rental Affordability Snapshot, which found the lowest ever number of affordable rentals across the country. The report found housing availability has not recovered since the start of the COVID-19 pandemic, with average rents $200 a week higher than pre-pandemic levels. I quote directly from ABC reporting on that snapshot.

The report goes on to note that there is not a single property across Australia or even a room in a shared house that is affordable for someone on Youth Allowance. My question therefore to the minister is: what action is the Malinauskas government taking in relation to skyrocketing rent prices and will they support the Greens' call for a rent freeze over the next two years to finally give renters some relief?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector) (15:26): It is always a distinct pleasure to have two questions from the Hon. Robert Simms in one question time. I would be more than happy to refer that question to my colleague in another place and bring back a reply for him.

27 August 2024

In reply to the Hon. R.A. SIMMS (30 April 2024).

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Minister for Consumer and Business Affairs has advised:

The South Australian government committed to delivering a package of initiatives to respond to current housing challenges. These initiatives included a review of the Residential Tenancies Act 1995 (act) to modernise the act, strike the right balance between protecting both tenant and landlord interests, and address the issues of rental affordability.

As part of this review, the Residential Tenancies (Limit of Amount of Bond) Amendment Regulations 2023 and the Residential Tenancies (Protection of Prospective Tenants) Amendment Act 2023 came into operation on 1 April 2023 and 1 September 2023 respectively, as the government's immediate priorities.

This provides immediate protections for tenants by limiting most rental bonds to four-weeks' rent (previously six weeks) and effectively banning rent bidding. This sought to provide relief to tenants in the rental market, while the broader review of the Residential Tenancies Act 1995 (RTA) was completed.

On 1 March 2024, the government commenced the next phase of RTA changes by introducing rental reforms in the Residential Tenancies (Miscellaneous) Amendment Act 2023 (amendment act) that did not require supporting regulations or significant adjustments to industry or community practices. Tougher penalties for all offences commenced, as did the amendment to ensure rent cannot be increased more than once within a 12-month period.

The remaining provisions in the amendment act will commence on 1 July 2024 (with one exception). Some of the changes to be commenced include:

• Requiring prescribed grounds to terminate or not renew a tenancy;
  
• Extending the notice period to end a tenancy from 28 days to 60 days;
  
• Allowing tenants to have pets in rental homes with reasonable conditions;
  
• Ensuring rental properties comply with minimum housing standards;
  
• Phasing in the need for replacement fixtures to meet energy and water saving standards;
• Providing additional support for victims of domestic violence; and
• Providing more protections for renters living in rooming houses.

This review presented opportunity for tenant and landlord representatives to discuss rent control measures. It was the overall view of those in attendance at the 2022 RTA forum that rent control measures are not a viable solution to rental affordability issues and are likely to cause an upsurge in rental prices.

Economists support this view, suggesting rent control disadvantages both landlords and tenants, and restrictions are likely to reduce incentive for investors, lead to disrepair of housing stock, reduce rental housing turnover, and exacerbate the mismatch between housing size and household size (particularly for vulnerable groups).

The South Australian government's housing package demonstrates commitment to increasing housing supply and providing affordable housing solutions, access, and support for South Australians. The government is in the process of delivering the first increase in public housing stock in a generation. By increasing public housing stock and affordable housing options, we are lessening demand for housing which will in turn benefit lower income households. To further ease stress in the private market, the SA Housing Authority are undertaking a range of initiatives with key partners.

The government's approach does not support the Greens' freeze on rents for a period of two years.

29 April 2024

Rents will be frozen for the next two years, under a Greens bill to be introduced into State Parliament this week.  

Under the new law, landlords would be  prevented from increasing rents on a residential premises for the next two years. After that, they would be able to increase rents but only in line with inflation.

“We are in the midst of the worst housing crisis in generations. It’s clear that leaving tenants at the mercy of the market is simply not working. It’s morally wrong that we have more and more South Australians being plunged into poverty and homelessness, while some landlords rake in record profits,” said Greens MLC Robert Simms.

“This bill would give renters a reprieve from skyrocketing prices and insert some fairness back into the housing market.”

“Rent freezes have worked during times of crisis for our country in the past. The Greens urge the Parliament to back this plan and give renters some relief.”

20 March 2024

The Hon. R.A. SIMMS (16:50): I move:

That this council—

1. Congratulates the Malinauskas government on reforming the Residential Tenancies Act in 2023 to strike a better balance between renters and landlords but recognises that more action is needed to curb soaring rent prices.
   
2. Notes that:

(a) Australia is experiencing the worst rental crisis in 17 years with the latest PropTrack data revealing rent prices in South Australia have increased between 10 to 30 per cent across 92 suburbs over the last year; and

(b) Shelter SA’s 2022-2024 survey of landlords, tenants and real estate agents revealed that ‘rent bidding’ allowing landlords to accept offers above the asking price is still prevalent in South Australia

3. Calls on the Malinauskas government to:

(a) freeze residential rents for two years and cap any future increases in line with inflation; and

(b) ban rent bidding in its entirety by prohibiting landlords and real estate agents from accepting offers above the asking price for a residential tenancy.

This motion congratulates the Malinauskas government on the well overdue reforms that were made to the Residential Tenancies Act in this parliament last year. I want to put on record again my appreciation to the Malinauskas government—Minister Michaels and also the Premier, with whom I worked closely on those reforms—because the government did action many of the issues that were outstanding in the rental market. They addressed many of the issues that were concerning advocates in this space.

But the one area where they did not take action, where they were found wanting, was on the issue of rent prices, so this motion calls on the Malinauskas government to implement an immediate rent freeze for two years with any future increases to be kept in line with inflation, and also calls on the government to actually rule out rent bidding.

Members might recall that in their first tranche of rental reforms the Malinauskas government introduced an amendment to end the so-called practice of rent bidding. What they did was prevent agents and landlords from being able to advertise properties in a range. Their view was that that was contributing to the spiralling cost of rental properties. I agree with that, but what the government did not do was actually extend the principle to also say, if you are an agent or a landlord, you will not be able to accept an offer above the asking price.

I asked questions of the government about this in the committee stage of the bill, and I thought it might be useful to revisit some of the things that were said from Hansard because the Greens are often ahead of these debates. We did warn at the time that what the government was doing was not going to actually address the crisis that we faced in terms of unscrupulous conduct, in terms of people driving up prices by making offers below the counter.

Unfortunately, according to the latest data that Shelter SA have released, 28 per cent of respondents are still participating in rent bidding and 8 per cent of respondents are paying additional bonds contributing to the rise in median rents. That is their report that has been conducted over the last two years. That is concerning because the Malinauskas government assured us all that they were putting an end to this practice last year.

I will just revisit some of the exchange from Hansard. I said to the Hon. Kyam Maher, who was representing the Minister for Consumer and Business Affairs in the committee stage of this bill:

Many speakers on behalf of the government have talked about the bill banning rent bidding. Could the minister explain to me how precisely the bill bans rent bidding when landlords and real estate agents are still able to accept an offer that is made above the asking price?

The minister replied:

On my advice, what this bill proposes is that it will not allow landlords to solicit offers of higher rates than what is advertised. It will not stop acceptance of higher rates, but it will prohibit the soliciting of rates higher than what is advertised.

Then I went on to say:

Yes, I accept that, but how precisely does this ban rent bidding? Is rent bidding only the practice, in the government's mind, of advertising for rents higher than the asking price? Surely the bidding is when the individual is able to actually put in a bid that is higher than the asking price. Can I ask why that is not addressed?

The Hon. Kyam Maher said:

I thank the honourable member for his question. I do not have a lot more to add, but what this bill does do is prohibit the soliciting or asking for higher prices. It does not prohibit the acceptance of it, but it prohibits asking for that and therefore promoting people to do that.

I went on to ask the minister:

Webster's Dictionary defines a bid as 'to offer a price for payment or acceptance' or as a verb 'to make a bid; to say what one will pay'. In light of that definition, how precisely does the government's bill ban rent bidding if actually all it is doing is banning the advertising of a rent price above the asking price?

The Hon. Kyam Maher replied:

I am advised that in effect what this legislation does is ban the practice by agents: that is, it stops agents going out to solicit or attempt to have potential tenants offer higher amounts.

I went on to press the minister:

The Webster's Dictionary definition of the word bid is 'to offer a price for payment'. Does the minister therefore concede that the bill does not actually ban the bid?

The minister responded by saying that this was some semantics. But, as I have said, the advice is that it stops landlords engaging in this sort of behaviour. I will not go on, Mr President, because I think you get the point. The point is that what the government did, did not actually stop rent bidding and, as a result, the practice is still prevalent in South Australia. So the government needs to close that loophole and that is what this motion is calling on them to do.

I want to talk a little bit about the need for a rent freeze. It is clear that Australia is in the midst of the worst rental crisis in nearly 20 years. The data tells us that story. Data from PropTrack has revealed that rent prices in South Australia have increased by 10 to 30 per cent across 92 suburbs over the last 12 months. Median rent prices in Adelaide in the past 12 months have risen 13 per cent, far exceeding the 4.8 per cent rise in CPI, and the 4 per cent rise in the wage price index in the 12 months up until December 2023.

Of the nearly 20,000 renters in South Australia, roughly a third are experiencing rental stress. Rental stress is defined as housing costs exceeding 30 per cent of a household's gross income, with 38 to 60 per cent representing severe unaffordability, and 60 per cent or more indicating extreme unaffordability. For low income renters in South Australia the problem is even worse. Two-thirds of those households spend 30 per cent or more of their income on rent, according to PEXA and LongView. I should clarify that I think those figures relate nationally but it would be the same here in our state. Nearly 28 per cent of people aged 45 to 54 rent today, compared with fewer than 20 per cent back in 2001. Among those aged 55 to 64, 21.6 per cent are renters, compared with 15.7 per cent more than two decades ago.

The changes that the government made to the Residential Tenancies Act, working in partnership with the Greens here in this place last year, were a good start, and we welcome that. I note the disappointing opposition of the One Nation party and others to those reforms that are really helping vulnerable South Australians. But the changes have not gone far enough. More action is needed to curb soaring rent prices. Renters desperately need a break. We cannot have another two years like the two years that we have had.

Sometimes when I talk about rent freezes and the like, people think that I am being incredibly radical—and I see the Hon. Heidi Girolamo is smiling there—but I want to refer to the Liberal Party's own policy in the state of Tasmania, where they are in the middle of an election campaign. Part of their housing plan is to provide a $200 a week cash incentive and guaranteed rental income for two years to 500 property owners who cap their rents between 25 and 30 per cent of the median rate.

If it is good enough for the Liberal Party in Tasmania, surely it should be good enough for the Malinauskas government in South Australia. That bastion of left-wing politics over in Tasmania that is the Tasmanian Liberal Party is telling the Malinauskas government or setting the signpost for the Malinauskas government in South Australia.

This is not a radical idea. We have had rent freezes in the past. Indeed, the Greens worked with the previous Marshall government and in particular Minister Vickie Chapman, to secure the passage of a rent freeze during the COVID period through this chamber, and it is time for us to do so again, to give renters some relief and then to cap rent increases in line with inflation going forward.

We could also look at the Liberal Party proposal from Tasmania, that radical left-wing clique that makes up the Tasmanian Liberal Party, and my old mate from federal politics, Eric Abetz, who is always at the vanguard of these left-wing debates, I am sure would agree. It is an important issue and we need to see leadership from this parliament so that we can provide support to South Australians who are struggling to put a roof over their head because that is a fundamental right of each and every person to have a place to live, a roof over their head and a place to call home. With that, I conclude my remarks.

6 March 2024

LAND AND BUSINESS (SALE AND CONVEYANCING) (BUILDING INSPECTIONS) AMENDMENT BILL

Introduction and First Reading

The Hon. R.A. SIMMS (16:06): Obtained leave and introduced a bill for an act to amend the Land and Business (Sale and Conveyancing) Act 1994. Read a first time.

Second Reading

The Hon. R.A. SIMMS (16:06): I move:

That this bill be now read a second time.

The bill the Greens are introducing today is a simple proposition but one that will have a big impact on people who are looking to get into the housing market in our state. When you are buying a house, especially for the first time, you want to be assured about the quality of the property that you are buying. Homebuyers are not experts on defects in buildings and so one of the ways that they can have peace of mind is to order a building inspection. In South Australia, the responsibility for getting that building inspection resides with the purchaser, it is at their discretion.

Building inspections can cost between $400 to $800 for a small to medium-sized property, or up to $1,000 for a larger property and so, if you are shopping around and putting in offers on multiple properties, that can add up to a hefty sum for a prospective buyer. Some people choose to place an offer on a property subject to a building inspection, and those offers could be looked at less favourably by the vendor than offers that are not subject to any such condition.

Indeed, we have anecdotal evidence that that is the case in South Australia and that potential buyers are foregoing building inspections because they want to give themselves the best possible chance of their offer being accepted. This is particularly the case when we are in the middle of a once-in-a-generation housing crisis. The reality is that, in the housing market at the moment, the property owner holds all of the cards. If they are receiving multiple offers for their property then they are likely to accept the offer that is not subject to a building inspection.

It is a very different story over in the ACT. In the ACT, the vendor is responsible for providing the pre-purchase building inspection. This promotes equity by ensuring that all potential buyers are provided with exactly the same information and no-one is disadvantaged simply for doing their due diligence. At the moment in South Australia, I fear the property market runs on the principle of buyer beware. If you are unlucky enough to purchase a lemon, then you can be up for tens or potentially hundreds of thousands of dollars for rectifying a potential problem, and that is really not fair.

Knowing about potential building defects, such as cracking, rising damp or potential safety hazards, is really important for prospective homebuyers. Building inspections can prevent extra unexpected costs appearing further down the track. This Greens bill would ensure that potential buyers can request a building inspection, and this must be provided by the vendor or their representative within two days. This would ensure that this information is made available to a prospective buyer before they put an offer forward on a house, so they do so with their eyes open and with all the relevant information about the condition of a property.

Additionally, under this Greens bill, the building inspection would be included at the time the vendor's statement is served. We know this anecdotally as the Form 1. Under our bill, a vendor or the agent or auctioneer would be responsible for supplying the Form 1 at least 10 clear business days prior to settlement, including a current building inspection; that is, a building inspection that is no more than three months old. This information must be made available three business days prior to and at the auction.

The building inspection would also be supplied as part of any purchase. The buyer would then have time before the expiration of the cooling-off period to consider the building inspection report to make an informed decision, so if, when they receive that report, they become aware of defects and issues with the property they were not previously aware of, given that information is disclosed to the buyer during the cooling-off period, they can elect not to proceed with the sale. This change would ensure that buyers are given all the information relevant to their purchase.

Buying a home is the biggest purchase that most people will make in their lifetime. It is a significant investment that has huge implications for the life cycle, and we know that it takes most people up to 30 years or more to pay off a mortgage. So when you are making such a significant investment, it makes sense that you have all the relevant information at your fingertips. Why would we not ensure in South Australia that all potential buyers get access to this information at the point of sale so we can level the playing field for all and so that we can ensure that people make an informed purchase?

It is a simple reform, but it is one that I hope will enjoy support from across the parliament. I do intend to bring this to a vote in coming months and look forward to discussions with my parliamentary colleagues.

6 March 2024

The Hon. R.A. SIMMS (14:31): I seek leave to make a brief explanation before addressing a question without notice to the minister representing the Minister for Planning on the topic of rental vacancy rates.

Leave granted.

The Hon. R.A. SIMMS: Figures that were published earlier this week in Domain's February vacancy rates report showed that Adelaide continues to have a vacancy rate of just 0.3 per cent, the lowest in the country. The data shows that in 2020, at the height of the COVID-19 pandemic, Adelaide's rental vacancy rates were much higher, at 1.2 per cent. On Monday, Architecture Australia published an article that suggested that Australia has enough unoccupied homes to cater for the shortage of housing. Also on Monday, SACOSS released its budget submission calling for a vacancy tax to free up more rental properties in our state.

My question to the minister representing the Minister for Planning therefore is: will the government consider a vacancy tax to free up more supply for rentals here in our state and if not, why not?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development) (14:32): I thank the honourable member for his question. I will refer it to the Minister for Planning in the other place and bring back a response.

In reply to the Hon. R.A. SIMMS (6 March 2024).

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development): The Treasurer has advised:

"The Victorian government announced a waiver to the vacant residential land tax in September 2020, and the estimated cost of that measure suggested that only around 880 properties would have been liable for the tax out of the 298,000 properties that were listed as vacant in Victoria based on the 2021 Census.

In comparison, there were 83,821 vacant properties in South Australia based on the 2021 census. Introducing an identical vacant property tax would only impact a very small number of properties in South Australia, making any benefit from implementing the tax minimal. Based on the Victorian model, it would not capture houses being constructed or renovated, holiday homes, properties used for work purposes or properties transferred during the preceding year. It is therefore likely that the number of liable properties in South Australia would be in the low hundreds.

The South Australian government does not have any plans to introduce a vacant property tax like that administered in Victoria and intends to maintain its commitment to not introducing new taxes."