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The Minns Labor government has introduced a new bill to NSW Parliament to abolish secret rent bidding practices.
Introduced into the lower house on Wednesday (10 May), the new legislation will close loopholes in the existing ban on solicited rent bidding to include owners and third parties.
As a result, investors and their agents will be required to notify applicants of other offers from potential tenants that are higher than the advertised price.
In addition, the legislation will guarantee that the appropriate powers are in place to design and enact a portable bond scheme to reduce the strain on renters.
The reforms aim to respond to the tight rental market in the state that has been plagued by low housing supply and rising interest rates and has increased the pressure on NSW citizens.
The Minns government has also put into motion reforms to eliminate “no grounds” evictions to bolster the protection of renters’ personal information.
NSW Premier Chris Minns said these changes will create a “fairer rental regime” through providing more certainty and flexibility for both owners and renters.
“Anyone who rents in Sydney knows just how anxious and challenging a process it can be to find suitable accommodation, never mind the significant costs associated with moving,” Premier Minns said.
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“The government is getting on with the job of delivering on our election commitments and providing much-needed relief for New South Wales renters.”
Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, said: “Agents are already banned from asking prospective tenants for more rent than what the property is advertised, but landlords and third parties aren’t, so we’re closing that loophole.
“Our focus is on getting the balance right by implementing responsible reforms that reduce stress and pressure for renters while also looking at ways to drive new supply into the market.
“A portable scheme will free up cash and make life easier for renters.”
Furthermore, the state government is undertaking the process of appointing a Rental Commissioner to act on behalf of renters.
Build-to-rent tax break
Treasurer Jim Chalmers announced a range of housing affordability measures in the federal budget 2023–24 on 9 May 2023.
Of those measures, a build-to-rent tax break has been included to encourage more investment in developments that particularly target increasing housing supply.
The government pledged to increase the rate for the capital works deduction (depreciation) to 4 per cent per year, while reducing the final withholding tax rate on eligible fund payments from managed investment trust (MIT) investments from 30 per cent to 15 per cent for eligible build-to-rent projects where construction begins after 9 May 2023.
[RELATED: The key housing measures of the budget 2023/24]
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