Media release – Elise Archer, Minister for Building and Construction, 24 March 2021
Extending financial support for Tasmanian tenants and landlords
The Tasmanian Government has taken unprecedented action to protect Tasmanian tenants and landlords throughout the COVID-19 pandemic, and we’ve always said that as we continue to recover, we will consider providing additional support.
I am pleased to announce that the Tasmanian Government will again extend the COVID-19 Rent Relief Fund and COVID-19 Landlord Support Fund, which were due to end on 31 March 2021 and will now be extended until 30 June 2021, giving both landlords and tenants more assistance and certainty as they recover from hardship caused by the pandemic.
So far under this program we have provided more than $3.65 million of financial support to Tasmanian residential tenants and landlords experiencing severe hardship since May 2020.
We were the first government in Australia to legislate emergency protections for residential tenants and landlords, creating temporary amendments to address the economic impacts of the pandemic on parties to a residential tenancy agreement.
Following the expiry of the emergency period on 31 January 2021, continued support has been offered through the COVID-19 Rent Relief Fund and COVID-19 Landlord Support Fund as a transitional measure, for eligible tenants and landlords suffering significant financial hardship due to COVID-19.
Recent amendments to the Residential Tenancy Act 1997 were also made to allow for rent arrears payment orders to be issued by the Residential Tenancy Commissioner on application by a party or parties to a tenancy arrangement, to allow landlords to recoup any remaining rental arrears accrued during the COVID-19 emergency period.
Importantly, the rent arrears payment orders do not override the obligation of a tenant to make regular payments of rent but instead outline a schedule for repayments in addition to normal rent obligations, and to protect them from eviction while complying with the payment order.
A landlord can only increase rent in line with the Residential Tenancy Act 1997.
If a tenant believes a rent increase is unreasonably high, they can apply to the Residential Tenancy Commissioner to have the rent increase reviewed. As of today, 24 March 2020, the Residential Tenancy Commissioner is still considering just five applications for unreasonable rent increases, following the expiry of the emergency period on 31 January, 2021. This is consistent with the same period in the previous year.
Further to our support measures and in order to place further downward pressure on rents, the Premier in his State of the State address last week announced that land tax will be modernised by increasing land tax thresholds to better reflect today’s strong property market, saving Tasmanians hundreds of dollars each year. The land value at which land tax becomes payable will double from $25,000 to $50,000, and the top threshold will also increase by $50,000, from $350,000 to $400,000.
The new land tax thresholds will better reflect today’s strong property market, with around 70,000 landowners to benefit by up to $613 a year, and 4,100 additional landowners to pay no land tax at all in the year ahead.
We anticipate these new arrangements will help ease the need for increases in rental prices, with our strong expectation that landlords seek to pass on these savings to tenants next year.
For more information on the financial assistance available and how to access it, Tasmanians can visit the Consumer, Building and Occupational Services (CBOS) website at www.cbos.tas.gov.au.
Media release – Cassy O’Connor MP | Greens Leader, 24 March 2021
Labor, Liberals, Ogilvie Let Down Tenants
The Greens’ move to protect tenants from unreasonable rent increases was voted down by Labor, the Liberals and Madeleine Ogilvie in Parliament today.
It is gut wrenching to us that Liberals and Labor MPs teamed up to defeat the Greens’ Residential Tenancy (Rent Control) Amendment Bill 2021. The model reflects, almost exactly, the framework in place in the Australian Capital Territory.
Instead of providing basic, compassionate support to Tasmanian tenants – proper protection from massive, exploitative rent hikes – the Labor and Liberals parties, and Ms Ogilvie, voted against relief for tenants.
The stories of hardship pouring out of the community, along with the data that confirms Tasmania as the least affordable place in the nation for renters, made no difference. Nor did the impending end of the federal government’s coronavirus assistance payments, or the concerns of social welfare organisations about the deepening housing crisis.
This was to be expected from the Liberals – a party with a long track record of prioritising profits for the propertied class over rights for those who are not. We were, however, shocked that Labor lined up alongside them.
Voting against this Bill is an endorsement of every massive rent hike tenants have felt this year – and each one yet to come as the housing crisis deepens.
Labor, the Liberals and Ms Ogilvie are now answerable to the tenants they could have protected.
While they have failed Tasmanian renters today, the Greens will keep doing everything we can to stand up for them and deliver relief.
Alison Standen MP, Shadow Minister for Housing, 24 March 2021
Rental affordability an issue but rent control is not the answer
Tasmanian Labor acknowledges that rental affordability is still a significant issue, but does not believe rent control is the answer.
Shadow Minister for Housing Alison Standen said rental affordability is a state-wide issue, with too many families facing an increasingly expensive private rental market.
“After seven years of a Liberal Government they have failed to build enough social housing,” Ms Standen said.
“Not only does rent control fail to recognise and address the chronic shortage of social housing, it could also create unintended consequences.
“Rent controls may lead to landlords either removing entire dwellings from the long-term rental market for good, or shifting properties into the short stay accommodation market, potentially making the availability of rental properties even worse and further reducing the security of tenure for tenants.”
Ms Standen said Shelter Tasmania and Tenants Union Tasmania have agreed that rent control measures cannot be done in isolation.
“With a shortfall of 11,400 of social affordable homes state-wide, the Government must do more to help fix Tasmania’s housing crisis.
“There are around 3,600 families on the public housing waiting list and compared to five years ago rents are up 37% state-wide.
“Labor welcomes the government’s announcement of an extension to the COVID-19 Rent Relief Fund and COVID-19 Landlord Support Fund.
“However, they must explain the eligibility criteria and whether this support extends to landlords and tenants who are experiencing financial hardship beyond the emergency period ending 31 January.
“Labor will continue to push for the Government to adopt the recommendations of the Housing Affordability committee, build more homes, make more homes available for social housing and to regulate the short stay accommodation market to make it easier for more Tasmanians who are currently in rental stress.”
