Question – COVID-19 Tenancy Support
Questions by the Hon Meg Webb MLC on 29 April 2020 answered for the Government by the Hon Roger Jaensch MP Minister for Housing on 30 April 2020
Tasmania was pro-active in passing legislation to support Tasmanians in rental accommodation during this pandemic. In the passage of the COVID-19 Disease Emergency Bill through the upper house, a commitment was sought and then given by the Government that:
Should Legal Aid, Community Legal Centres and the Tenants’ Union require additional resourcing due to demand during the notice period, to comply and assist with their duties in aiding tenants during the emergency period set out in the notice, the Government will provide for those additional resources during the notice period. The Government has already agreed to resourcing any other place in relation to the Residential Tenancy Commissioner.
Given the Tenants’ Union of Tasmania’s role in supporting vulnerable Tasmanians and the significant increase in demand for its services, can the Government advise:
Question (1) What increase in demand has been experienced in April 2020 by the Tenants’ Union?
ANSWER: The Department of Justice had a preliminary conversation with the Tenants Union of Tasmania in early April 2020 regarding the changes to the Residential Tenancy Act 1997 during the emergency period.
At this time, the Tenants Union indicated it had received an increase in demand in enquiries from tenants that had, in part, been offset by a reduction in matters before the Courts. The Department of Justice communicated the Government’s commitment to fund the Tenants Union of Tasmania during the emergency period in the event this was necessary due to additional demand.
In line with this commitment, the Government will consider any request from the Tenants Union for additional funding.
Question (2) What additional funding or resources have been provided by the state government to the Tenants’ Union of Tasmania to date?
ANSWER: See above.
Question (3) If additional funding has been provided to date, can the Government demonstrate that it was sufficient to meet the increased demand already experienced by the Tenants’ Union?
ANSWER: See above.
Question (4) What additional funding or resources will be provided to the Tenants’ Union of Tasmania across the duration of the emergency period?
ANSWER: See above.
Question (5) If additional funding is provided to the Tenants’ Union across the emergency period, can the Government guarantee that such funding will be sufficient to meet the increased demand experienced by the Tenants’ Union?
ANSWER: See above.
Question (6) What other, if any, measures are the government considering to ensure the Tenants’ Union of Tasmania can keep up with the increased demand in supporting Tasmanians in rental accommodation?
ANSWER: See above.
The Residential Tenancy Commissioner (RTC) has a key role in the provision of information and advice and the resolution of disputes for both tenants and landlords.
Question (7) What increase in demand has been experienced in April 2020 by the RTC?
ANSWER: The Office of the Residential Tenancy Commissioner have had a significant increase in demand during April 2020, being upward of 175%. Enquiries have more than doubled between March and April 2020. The increase includes bond disputes, enquiries, applications for orders, and complaints of non-compliance.
Question (8) What additional resources have been provided to the RTC to date to assist with increased demand?
ANSWER: Rental Services is situated within Consumer, Building and Occupational Services (CBOS), an output of the Department of Justice. Rental Services, incorporates the Residential Deposit Authority, and the Office of the Residential Tenancy Commissioner (RTC). CBOS have redirected resources to be able to provide additional resources to the RTC, specifically employees of the output who are trained and qualified to undertake investigations.
Question (9) If additional funding has been provided to date, can the Government demonstrate that it was sufficient to meet the increased demand experienced by the RTC?
ANSWER: To date additional funding has not been required. Rental Services, which incorporates the Rental Deposit Authority and the Office of the Residential Tenancy Commissioner, is funded predominantly from the interest from bonds that are held in trust.
Question (10) What additional funding or resources will be provided to the RTC across the duration of the emergency period?
ANSWER: The Government will continue to monitor the requirement for additional resources and will provide the RTC with further resourcing as the need arises.
Question (11) If additional funding is provided to the RTC across the emergency period, can the Government guarantee that such funding will be sufficient to meet the increased demand experienced by the RTC?
ANSWER: As stated before, no additional funding has been required to date and additional resourcing has been provided from within CBOS. This will continue to be monitored and additional resources will be provided as required.
The COVID-19 Disease Emergency Bill provides for the option for either tenants or landlords to apply to the RTC to break a lease due to hardship.
Question (12) Since the legislation was enacted, how many such applications to break a lease due to hardship have been lodged with the RTC by (a) tenants and (b) landlords?
ANSWER: Owners or Tenants can apply to the Residential Tenancy Commissioner for an order to terminate a residential tenancy agreement if they are experiencing severe COVID-19 related hardship.
A total of 19 applications have been received since the legislation was enacted. Of these 17 have been submitted by tenants and two by owners.
Question (13) Noting the urgency of such applications, in what timeframe are the applications being processed and resolved?
ANSWER: Applications for the termination of a residential tenancy agreement due to severe COVID-19 related hardship are being assessed as soon as practicable .
When an application is received, each party is contacted regarding the matter and given 7 days to provide any evidence to support their claim. The application is then assessed and the Commissioner will make a decision if an order of termination is required.
Question (14) How many such applications have been resolved to date?
ANSWER: To date six applications have reached a mutual agreement after contact from the RTC. One order has been made, and 12 applicants have been contacted and assessment is currently in progress.
In light of the Australian Securities & Investments Commission’s (ASIC) recent advice (April 3 2020) to the real estate industry warning against agents providing financial advice, for example, by suggesting tenants draw on their superannuation to cover rental costs, can the Government advise:
Question (15) How many complaints or communications has the Government, Departments or Agencies received from tenants or their advocates alerting them to instances of real estate agents potentially contravening ASIC’s advice?
ANSWER: Consumer Building and Occupational Services within the Department of Justice and the Property Agents Board have not received any complaints regarding the above practices
Question (16) What support has been provided by the Government to tenants who have made complaints or raised this issue to help them liaise with real estate companies and landlords?
ANSWER: Consumer Building and Occupational Services within the Department of Justice and the Property Agents Board have not received any complaints regarding the above practices
Question (17) What actions has the Government and the Attorney General taken against real estate companies who have been shown to contravene ASIC’s advice?
ANSWER: The practices in question are a potential breach of the Corporations Act 2001, which is Commonwealth legislation, administered by the Australian Securities Investment Commission.
The Tasmanian Government and the Attorney-General have no role in the administration of the Corporations Act 2001.
Question (18) In how many instances has action been taken against real estate agents contravening ASIC advice?
ANSWER: As above.
