THEOPHANOUS (Northcote): In the 1 or 2 minutes we have got left before lunch I rise to speak in support of this bill. I rise to support it because this is a bill that increases fairness. As a government we said we would work for a fairer Victoria, and that is what this bill is about. The changes are manifold, but they all work towards supporting fairer outcomes and better protections for the people of Victoria.
Amongst the many parts of this bill that have been discussed and debated there are two parts that I know will be very relevant to my community and the district of Northcote, and they are the changes to the Residential Tenancies Act 1997 and the improvements to the Domestic Building Contracts Act 1995.
The changes to the Residential Tenancies Act contained in this bill are changes that will improve the lot of both tenants and landlords. Specifically I refer to those amendments which will enable the early commencement of our rental pet reforms and those that will enable the rollout of our Solar Homes program to rental properties. For thousands of people in my community these are welcome changes because they increase stability and certainty for renters and landlords. While home ownership remains an aspiration for many and an important part of the Australian psyche, tenancy is the immediate reality for millions of Victorians, and indeed some economists argue that renting is a far more rational decision than owning our own homes.
Sitting suspended 1.00 pm to 2.01 pm.
I will try to change the tone from the absolute waste of time that was that matter of public importance. As I was saying, tenancy is the immediate reality for many millions of Victorians. More than a quarter of Victorians are renters and a growing number are long-term renters, some as a result of circumstance, some through choice.
In the Northcote electorate those numbers are even higher, with almost 40 per cent of homes in our community being rentals, according to the census. Northcote also has a higher median weekly rent than the Victorian or indeed the Australian average, at $410 compared to $325 and $335 respectively, and that is no surprise since living in Northcote is indeed a delight.
Nevertheless, the rising cost of living is putting a strain on many households, and in recognition of this our government has taken the lead on initiatives that aim to reduce costs and improve consumer protections. We believe it is critical that renters in Victoria have the support, security and safety they need so that every house, whether rented or owned, can feel like a home.
Like many people, I had been a renter for many years, and now in partnership with my husband, and with the bank, I am a home owner, so I get it. I get both sides of the coin when it comes to balancing the interests of renters and home owners, and for me the biggest benefit of these reforms is the fact that they strike this balance. Given the growing cost of living and indeed the increased cost of renting, it is more important than ever that we do what we can to lower costs for households and make renting an affordable and realistic option. That is why the Andrews Labor government undertook to update and improve Victoria’s rental laws, which have remained untouched for 20 years.
Through an extensive consultation process we heard from thousands of renters about the challenges they face and how we can build a system that is fair for everyone. In response we are now delivering a major reform package that will enhance renters’ rights and balance them with the needs of landlords through amendments to the Residential Tenancies Amendment Act 2018.
Work is already underway on the main package of reforms, including a revised set of regulations, but this bill brings forward one important element of these broader changes, and that is pet reforms. By inserting a new division 5B into part 2 of the Residential Tenancies Act 1997 this bill enables the pet reforms set out in the Residential Tenancies Amendment Act to start earlier than the main package. Under these reforms tenants will have the right to keep a pet in their home, provided they obtain consent from their landlord. It seems like such a simple change, but for the many pet owners who will be impacted by this it means a great deal.
Currently there is no law covering the rights and responsibilities of landlords and tenants as they apply to pets. This has led to a situation where many rental agreements include blanket pet bans, which means that tenants are forced to make the tough decision to give up their pets for adoption or they run the gauntlet, keeping their pets in breach of their rental agreement. With these changes landlords must not unreasonably refuse consent to have pets, and the onus is on the landlord to get an order from VCAT to refuse consent. In the case of assistance dogs consent cannot be refused. I will also add that in general we know that pet ownership is a long-term and serious commitment and it usually lasts longer than our tenancy agreements.
Sadly we also know that rental pet bans are the cause of many people having to give up their beloved pets. In Victoria the RSPCA reports that around 15 per cent of the dogs and cats surrendered came into their care because their owners were moving and could not take them to their new homes.
Pets provide companionship, support and improve our emotional wellbeing. Yes, some pets make a mess, but so do children, let me tell you! Pets also have a way of bringing us together, drawing us out of our shell and making us part of the community. Frankly, I think allowing renters to have pets makes for better tenants, happier tenants, and better tenants make for better landlords.
As well as strengthening tenants’ rights this bill also empowers tenants and landlords to make changes to their energy mix and save money on power bills by facilitating the rollout of our Solar Homes program. The Liberals privatised our energy assets, which has led to power prices going up and up and up. This is about reversing that trend and helping with the cost of living for hardworking Victorian families.
Amendments contained in the bill clarify that landlords and tenants can voluntarily enter into an agreement separate from the tenancy agreement under which a tenant can agree to contribute up to 50 per cent of the amount of the loan made by the government to the landlord for installing a solar system. In doing so it ensures that agreements made under the Solar Homes program are not inconsistent with the Residential Tenancies Act.
The people of the Northcote electorate are proudly passionate about climate action and the role of renewable energy in our state’s future, and Northcote residents have embraced solar power with enthusiasm. Locally, almost 3000 homes, or 13 per cent of the electorate, have a residential solar system, and we have 79 larger commercial systems. Combined they provide over 11 000 kilowatts of clean energy capacity to the grid, and with over 460 Northcote households having applied for our Solar Homes program to date that number is only set to grow as we continue to roll out this $1.3 billion package.
However, as Tenants Victoria has said: Whilst the take-up rate for solar power has been increasing— in the owner-occupier space— … the rental sector has lagged far behind, limiting access to savings for renters and inhibiting their ability to adapt to climate change. That is why our Solar Homes program and its expansion to the tenant-landlord space is so important, particularly for Northcote.
According to Solar Citizens the federal electorate of Cooper, of which the seat of Northcote forms a part, is saving $5.7 million per year on power bills, and 2016 figures show they have saved just shy of 15 000 tonnes of CO₂. These substantive and innovative reforms are just one part of our commitment to make the most of every opportunity at every level to facilitate the growth of renewable energy, to meet our renewable energy targets and to move towards net zero emissions.
It is just another example of how Labor governments deliver progress rather than protest. We do not stand in the way of reform on platforms of idealism. We get things done to move us further along the path to where we want to be. I note that in the 10 minutes that the member for Prahran spoke for, despite acknowledging the benefits of solar homes and rental reforms to his electorate, he could not bring himself to admit that these are good policies. In classic Greens style he could not help himself in criticising the government for having a program that is immensely popular, a program that is delivering not just cost savings for families but tangible action on our environment. No, for the member for Prahran it is either too popular or not popular enough. Gosh, who even knows? Maybe it is too successful and we should just scrap the whole thing. Protest over progress: the mantra of the Greens political party.
But I want to come back to the point that I was making earlier, and that is that these rental reforms improve things for both renters and landlords. For renters the Solar Homes program will save them up to $890 on electricity bills every year, and they will have the ability to keep their pets. Landlords will have an incentive to improve their rental investments by providing a more attractive rental offering to their tenants. We can get silly about having cows and crocodiles for pets, but let us be real here. We know from experience that people who are given the stability of having their family pet or given access to cheaper, more responsible power or allowed to do things like putting their family photos on the wall will, just like owner-occupiers, treat their rental property like it is their home. Happier tenants will stay longer, and we know that longer term tenants generally mean less costs for landlords: less costs for advertising, less costs in agent fees and less damage to properties from furniture being hauled in and out.
In the minute I have left I just want to turn to the amendments to the Domestic Building Contracts Act 1995, which will improve the dispute resolution process.
The Northcote electorate is changing rapidly, with many of its older homes changing hands, and that means that there are many properties that have undergone renovation or redevelopment. In my short time as a member I have been approached by many constituents who have had issues getting defects rectified and had trouble resolving disputes with builders. I am pleased to support measures in this bill that will streamline the disputes process and make it fairer. Nobody wants to be caught up in building disputes, but when we are there need to be processes in place to make resolving them as stress-free as possible. So as I said in the beginning, these reforms are about fairness. I commend this bill to the house.
