Residential Focus: NSW tenancy law update

This month, NSW renters are being given a reprieve as the NSW Government intends to introduce several legislative amendments designed to build a fairer rental market.

The proposed bill, which has been in consultation with private stakeholders, includes requiring landlords to provide free ways for tenants to pay their rent.

While the existing legislation requires that landlords and real estate agents provide at least one free way to pay rent, the loose wording of the Residential Tenancies Act allows for landlords and agents to put that method out of easy reach by making it inconvenient (such as requiring in-person payments). Modernising the requirements for free methods of payment to (for example) a free bank transfer could see renters saving up to 1.5 per cent of their weekly rent in fees.

The bill also makes it easier for tenants to own pets in rentals by making the landlord unable to refuse pets without good reason.

Further to this, the bill will include previously announced measures, such as the removal of no grounds evictions to improve renter certainty and a further crackdown on fees relating to rental applications.

The changes are welcome in the tough rental market, with historically low vacancy rates and ever-increasing median rent prices. They follow a number of initiatives introduced by the government, including the introduction of the free Rent Check tool and further investments to establish a Rental Taskforce within NSW Fair Trading to act on serious breaches of rental laws.

For more information, see here.

Author: Brandon Thai

In the media

New data reveals a record number of Australian homes surpassed $1 million property value mark
A record number of Australian suburbs now have a median house or unit value above $1 million, according to a new report. New data from CoreLogic shows 29.3 per cent — or 1,057 — of the nearly 4,800 suburbs surveyed across the country now have a million-dollar median. That's more than doubled since the beginning of the COVID pandemic, when just 14.3 per cent of dwellings met that mark. The report looked at the number of markets across Australia with a median house or unit value of at least $1 million. (26 September 2024) Read more here.

Landlords must allow ‘reasonable’ pet requests and provide free methods for paying rent under NSW government shake-up
Landlords will no longer be able to reject pets without a valid reason, under a proposed shake-up of rental laws that the state government says will "modernise" the market. Legislation, to be introduced to parliament next month, will also require landlords to provide fee-free methods of paying rent. Under current rental laws in NSW, a tenant can request to keep a pet, but the landlord can refuse without providing any reason. One exception is an assistance animal, which can't be refused. Under the planned legislation, a landlord will have to provide a valid reason for rejecting an animal, such as that pet being in breach of local government regulations. (23 September 2024) Read more here.

Axeing negative gearing won't solve housing crisis but may have meaningful impact, experts say
Phasing out negative gearing may not solve Australia's housing crisis but reforming the controversial tax write-off could have a meaningful impact, say economists. The debate surrounding negative gearing and capital gains tax has reignited following a report the federal government had asked Treasury for advice on possible changes to the tax concessions. Under negative gearing, taxpayers can claim deductions when the cost of owning an investment property outweighs its income generated. (27 September 2024) Read more here.

Randwick mayor wants to introduce levy on developers who leave their property vacant for a year or more
A council in Sydney's east wants to introduce an empty homes levy on properties which remain uninhabited for a year or more. In the inner Sydney suburb of Randwick, home to thousands of healthcare workers, four hospitals, and countless students taking classes at one of the state's largest universities, a multi-storey block of units sits derelict and empty. The levy would target people holding property in a practise known as land banking. Councils need the state government to agree to changes to the Local Government Act in order to put an empty home levy in place. (16 September 2024) Read more here.

In practice and court

Strata Managing Agents Legislation Amendment Act 2024 No 65
The Strata Managing Agents Legislation Amendment Act 2024 No 65 was assented to on 30 September 2024. The bill amends the Strata Schemes Management Act 2015 and the Property and Stock Agents Act 2002 to strengthen the disclosure obligations of strata managing agents, increase transparency for strata owners, and bolster NSW Fair Trading's compliance and enforcement powers. Complementary changes are also proposed to ensure that the Community Land Management Act 2021 remains consistent with the Strata Schemes Management Act. (30 September 2024) Read more here.

Published – articles, papers, reports

Building Approvals, Australia – Australian Bureau of Statistics
It provides the number of dwelling units and value of buildings approved. The August 2024 seasonally adjusted estimate are:

total dwellings approved fell 6.1%, to 13,991.
private sector houses rose 0.5%, to 9,338, while private sector dwellings excluding houses fell 16.5%, to 4,418.
the value of total residential building fell 6.7%, to $7.96b.
the value of non-residential building rose 11.5%, to $5.30b. (1 October 2024) Read more here.

Engineering Construction Activity, Australia – Australian Bureau of Statistics
It contains value of engineering construction work done, commenced and yet to be done. Key statistics are: In the June quarter:

seasonally adjusted work done rose 1.2%.
seasonally adjusted work done for the private sector rose 0.4%.
value of work commenced rose 10.0% in original terms.
trend work done rose 0.3%. (25 September 2024) Read more here.

House approvals continue to rise – Housing Industry Association
“Market confidence in new home building has strengthened in recent months, as investors and owner occupiers return to the market,” stated HIA Chief Economist, Tim Reardon. The Australian Bureau of Statistics today released its monthly building approvals data for August 2024 for detached houses and multi-units covering all states and territories. “Detached house approvals rose by 0.6 per cent compared to July. House approvals in the three months to August 2024 were 11.2 per cent higher compared to the same time the previous year,” added Mr Reardon. (1 October 2024) Read more here.

Cases

Wu v Commissioner for Fair Trading, Department of Customer Service [2024] NSWCATOD 161
ADMINISTRATIVE LAW – administrative review of decision to refuse an owner-builder permit for the construction of a dual occupancy – whether special circumstances exist
Administrative Decisions Review Act 1997; Home Building Act 1989

Smith v Impero Pacific Group Pty Ltd t/as Impero Constructions [2024] NSWSC 1234
BUILDING AND CONSTRUCTION – adjudication – adjudicated amount – where plaintiff commenced these proceedings seeking to quash an adjudication determination – where first defendant registered adjudication certificate – where judgment now entered against plaintiff – where first defendant seeks stay of these proceedings until plaintiff pays into Court the adjudicated amount – where plaintiff has no present ability to pay amount into Court – where plaintiff’s assets exceed her liabilities – where secured creditor in possession and about to exercise power of sale over plaintiff’s principal assets
Building and Construction Industry Security of Payment Act 1999 (NSW)

Smith v The Owners – Strata Plan No. 43094 [2024] NSWCATAP 186
APPEAL – leave to appeal – refused
LAND LAW – Strata Title – owners carrying out unauthorised works on common property – action to compel removal of works and restoration of common property.
Civil and Administrative Tribunal Act 2013; Civil and Administrative Tribunal Rules 2014; Strata Scheme Management Act 2015

Baker v The Owners – Strata Plan No. 9348 [2024] NSWCATAP 180
APPEALS – Finding of breach of duty to maintain and repair common property – exercise of discretion – no error of law- no basis for granting leave to appeal
Civil and Administrative Tribunal Act 2013 (NSW); Civil and Administrative Tribunal Rules 2014 (NSW); Strata Schemes Management Act 2015 (NSW)

The Owners - Strata Plan 82089 v Omaya Holdings Pty Ltd (No 2) [2024] NSWSC 1188
CIVIL PROCEDURE – pleadings – amendment – where plaintiff seeks to exercise liberty to replead allegations against the third defendant – whether prejudice to the third defendant by reason of delay and other matters
CIVIL PROCEDURE – admissions – where plaintiff’s proposed amended list statement contains new allegations as to an alleged contract between the second and third defendants said to be evidenced by “evidentiary admissions” in the second and third defendants’ cross-claim against third parties where the existence of such a contract is asserted – where that cross-claim is unverified but contains certificate by third defendant’s solicitor that there are reasonable grounds to make the allegations in the cross-claim – whether these allegations are admissions – whether these allegations are representations
Civil Procedure Act 2005 (NSW); Design and Building Practitioners Act 2020 (NSW); Environmental Planning and Assessment Act 1979 (NSW); Home Building Act 1989 (NSW); Legal Profession Uniform Law Application Act 2014 (NSW); State Environmental Planning Policy (Housing) Amendment (Transport Oriented Development) 2024

Roxy Pacific Killara Pty Ltd v The Owners – Strata Plan 10053 [2024] NSWCATAP 177
BUILDING AND CONSTRUCTION – Home Building Act 1989 (NSW) – S 48O discretion – Defects
Civil and Administrative Tribunal Act 2013, s 80(2)(b); Home Building Act 1989 (NSW), ss 48O, 48MA

Tom v Commissioner of Fair Trading [2024] NSWCATOD 158
ADMINISTRATIVE LAW – REVIEW OF DECISION BY EXTERNAL DECISION-MAKER – decision to cancel contractor licence and disqualify a licence holder pursuant to section 62 of the Home Building Act 1989 (NSW) – improper conduct – fit and proper person
Administrative Decisions Review Act 1997 (NSW); Building Legislation Amendment Bill 2023 (NSW); Civil and Administrative Tribunal Act 2013 (NSW); Civil and Administrative Tribunal Rules 2014 (NSW); Home Building Act 1989 (NSW)

Chahrouk v Bardouh [2024] NSWCATAP 181
APPEALS – errors other than errors of law – no question of principle
Home Building Act 1989 (NSW), ss 7, 18E, 18F
Civil and Administrative Tribunal Act 2013 (NSW), ss 80, 81; cl 12 of Sch 4

Legislation

Regulations and other miscellaneous instruments
Water Management (General) Amendment (Miscellaneous) Regulation 2024 (2024-488) – published LW 20 September 2024

Bills introduced

Government
Environmental Planning and Assessment Amendment (Certification) Bill 2024 – introduced LC for concurrence 24 September 2024
Water Legislation Amendment Bill 2024 – introduced LC 24 September 2024

Non-Government
Environmental Planning and Assessment Amendment (Affordable Housing Statutory Condition) Bill 2024 – introduced LA 26 September 2024

Bills revised following amendment in Committee
Water Management Amendment (Water Access Licence Register Reform) Bill 2024 – introduced LC for concurrence 26 September 2024

Bills Assent to
Regional Development Amendment Act 2024 No 64 – assented to 30 September 2024
Strata Managing Agents Legislation Amendment Act 2024 No 65 – Assented to 30 September 2024
Ports and Maritime Administration Amendment Act 2024 No 67 – Assented to 30 September 2024
Environmental Trust Amendment Act 2024 No 68 – Assented to 30 September 2024

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Brandon Thai, Christine Jones (Editor)

Residential Focus: NSW tenancy law update

In the media

In practice and court

Published – articles, papers, reports

Cases

Legislation

Bills introduced

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Key Contacts

Christine Jones

Residential Focus: NSW tenancy law update

In the media

In practice and court

Published – articles, papers, reports

Cases

Legislation

Bills introduced

Share this

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