Kim O’KEEFFE (Shepparton) (15:33): Today I rise to make a contribution on the Estate Agents, Residential Tenancies and Other Acts Amendment (Funding) Bill 2024. The bill is for an act to amend the Residential Tenancies Act 1997 in relation to funding dispute resolution services, to amend the Estate Agents Act 1980 in relation to funding dispute resolution and advocacy services and to abolish the Estate Agents Council (EAC), to amend the Business Licensing Authority Act 1998 to facilitate the closure of the Sex Work Regulation Fund, to amend the Public Records Act 1973 to abolish the Public Records Advisory Council (PRAC) and for other purposes. The bill makes several amendments across a variety of current acts. As such, the Estate Agents, Residential Tenancies and Other Acts Amendment (Funding) Bill 2024 amends the Estate Agents Act 1980 to provide that money in the Victorian Property Fund may be used for the establishment and ongoing costs of a dispute resolution service as well as support the provision of consumer advocacy and assistance services. The funds made available will allow the government to resource community organisations to provide advocacy and assistance services to consumers on housing and property issues.
It is important to note, in reading the bill before making this contribution, that the bill contains no substantive information about the make-up of the potential dispute resolution body, nor does the bill outline the replacement or alternative avenues for the Estate Agents Council and the Public Records Advisory Council in providing industry advice to the minister. In addition, in the amendments the bill makes to the Estate Agents Act 1980 it provides that money in the Victorian Property Fund must be utilised for the costs and expenses of establishing, and the ongoing funding, operation and administration of, the provision of dispute resolution services.
From the recent Consumer Affairs Victoria annual report 2022–23, the Victorian Property Fund total trust fund revenue was just over $94 million in comparison to its total trust fund expenditure of $34 million. These are some limitations and concerns in this bill that we will be looking at for the total costs of establishing this new dispute resolution service, separate to the Victorian Civil and Administrative Tribunal, known as VCAT, and the costs and ongoing expenses for the operation, administration and funding for the provision of this new dispute resolution service. This new alternative dispute resolution service, which will be known as Rental Dispute Resolution Victoria, will assist renters in residential rental by providing a service for Victorians to resolve tenancy disputes over rent, damage, repairs and bonds. We know that there can be many complex disputes from both the landlord and renter, and we do need a fair and equitable process.
The Greater Shepparton region is in the midst of a housing availability and affordability crisis. We have one of the highest rates of homelessness across the state and in fact over 2000 people on the public housing waiting list. There are minimal rental properties, and for those that do try and get a rental, either they are too expensive or they are competing with so many others. The recent land tax has had a significant impact on the landlords, and what we are seeing is properties going on the market and rents increasing. How does the government address the housing crisis by pushing landlords out of the market and increasing rent for tenants in a cost-of-living crisis?
I also wish to mention a couple whose rental property burned down nine years ago. They are currently in a shed on that property, still awaiting accommodation. The government claims that this new service will be a faster, fairer and cheaper means for Victorians to resolve their disputes, as it will enable VCAT to use its resources to address more complex matters such as disputes around termination of residential rental agreements or applications for an order for possession of rented premises. However, in the bill briefing the government provided the opposition on this bill, department representatives were unable to provide an exact answer and cost of what it would be looking at in establishing this new dispute resolution service. We do not have details of how this service will be faster, fairer and cheaper.
In addition, the other concern in this bill is what the difference will be between this new dispute resolution service and what we currently have invested in VCAT. What powers will this new dispute resolution service have in comparison to VCAT, and what effectiveness will it have in resolving such dispute matters prescribed under the relevant acts that it is able to deal with and facilitate? In addition, the bill contains no substantive information about the make-up of the potential dispute resolution body, nor does it outline the replacements for both the EAC and PRAC in providing industry advice for the minister.
The bill also makes amendments to the Residential Tenancies Act 1997 to provide that money out of the Residential Tenancies Fund may be used for the establishment and operation, including administration costs, and the provision of dispute resolution services for prescribed disputes arising under the Residential Tenancies Act 1997 and any regulations that may have been made under that act. In the recent Consumer Affairs Victoria annual report 2022–23 the Residential Tenancies Fund provided a total revenue of $30.4 million and total expenditure of $30.8 million, which as a result provided a deficit of $472,295. In addition, in CAV’s annual report for 2021–22 the Residential Tenancies Fund provided for a total revenue of $22.6 million and a total expenditure of $33.4 million – again, another deficit of $10.7 million.
Furthermore, the Estate Agents, Residential Tenancies and Other Acts Amendment (Funding) Bill 2024 repeals sections 25A and 25B of the Businesses Licensing Authority Act 1998 with the intention to close the Sex Work Regulation Fund. Previously, sections 25A and 25B have been operating as a transitional provision by providing financial relief to licence-holders in relation to fees payable under the licensing scheme. Section 25A provides that the Sex Work Regulation Fund established by the now repealed section 66 of the Sex Work Act 1994 continues under the Business Licensing Authority Act 1998, whereas section 25B enables the Business Licensing Authority to refund annual licence fees to licence-holders in relation to the utilisation portion of a license period and provides for regulations to be made regarding refunds. As a result of the decriminalisation of sex work on 1 December 2023 the bill makes administrative changes to close the fund given it no longer serves its required purpose.
Lastly, the bill makes further amendments to both the Estate Agents Act 1980 and the Public Records Act 1973. Clause 10 of the bill repeals part IIA of the Estate Agents Act 1980, which will have the effect of abolishing the Estate Agents Council. Abolishing this council will no longer see this council consulting the government on policy and practices relating to the regulation of the real estate industry.
As such, since its establishment, the EAC has strongly envisioned a fair real estate marketplace by balancing the interests of sellers, buyers, tenants and landlords; through serving the broader industry and having the confidence of the Victorian community. In doing so the government must recognise the importance of this industry and not leave them behind by abolishing this council. In the explanatory memorandum to the bill it states that the decision has been made:
… to develop alternative avenues to consult on policy and practices relating to the regulation of the … industry.
The government must recognise this, and not leave the industry behind in doing so.
In addition, the PRAC has played a key role in providing advice to the Public Record Office and advising the minister and administration on the act as well as promoting cooperation between the Public Record Office and other government agencies. Clause 19 of the bill repeals section 4, 4A and 5 of the Public Records Act 1973 to abolish the Public Records Advisory Council. This bill does not provide enough detail and information and more thought needs to go into the bill. I support the reasoned amendment by the lead speaker for the opposition, Shadow Minister for Consumer Affairs and member for Ovens Valley.