Premier Jacinta Allan introduced the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill, emphasising a commitment to fairer renting practices and addressing excessive rent hikes.
The reforms include expanding factors that can be considered in rent reviews, such as the size of rent increases and property maintenance history, giving Consumer Affairs Victoria (CAV) and VCAT more oversight.
“It’s not fair that a renter can cop a 200 per cent rent increase just because they’ve asked for a basic issue to be fixed,” Premier Allan said.
The government also mandated that properties meet minimum standards before being advertised, with penalties reaching $59,000 for non-compliance.
Ms Allan highlighted the importance of these reforms, saying, “We’re building more homes for renters to live in, and we’re legislating more rights so renters get more respect.”
She added: “New tenants should be able to focus on where they put their couch, not worrying about if they need to go to VCAT because the mould in the bathroom that was supposed to be removed after the inspection is still there.”
Other changes include banning no-fault evictions, requiring yearly smoke alarm safety checks, and prohibiting third-party apps from charging renters extra fees.
Minister for Consumer Affairs Gabrielle Williams said the government is giving regulators more powers “to stop excessive rent hikes, particularly if the landlord hasn’t maintained the property”.
Mixed reactions from the real estate industry
The Real Estate Institute of Victoria (REIV) welcomed some measures, such as smoke alarm checks and advertising standards, but warned other changes could strain the rental market.
CEO Kelly Ryan expressed concerns over the removal of no-fault evictions, increased notice periods, and expanded rent review criteria, stating these could deter investors and reduce rental stock.
“A healthy rental ecosystem relies on mutual benefit and value for renter, rental provider, and the real estate industry,” Ms Ryan said.
REIV also acknowledged a positive step in deferring new energy efficiency standards but stressed the need for greater support for rental providers amid rising compliance costs.
“The Victorian Government must start focusing on incentivising rental providers and providing greater support to real estate professionals.”
