Residential Tenancies and Rooming Accommodation (Rent Freeze) Amendment Bill 2022

Introduced: 31/8/2022By: Dr A MacMahon MPStatus: Discharged
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Plain English Summary

Overview

This private member's bill proposed a two-year freeze on all residential rents in Queensland at August 2022 levels, with ongoing caps of 2% every two years thereafter. It responded to record rent increases (over 20% annually in Brisbane) and near-zero vacancy rates across the state. This bill was discharged and did not become law.

Who it affects

Renters would have had rent frozen then tightly capped. Landlords would have been prohibited from increasing rent, with $7,187 fines for non-compliance. The Residential Tenancies Authority would have maintained a new public rent register.

Key changes

  • Two-year rent freeze at 1 August 2022 levels for all residential tenancies
  • After freeze period, rent increases permanently capped at 2% every two years
  • New public register of rents maintained by Residential Tenancies Authority
  • Properties not rented in previous 12 months priced at median rent for comparable properties in same postcode
  • Penalties of $7,187 (50 penalty units) for landlords who breach the freeze or cap
  • Landlords prohibited from moving rental properties to short-term accommodation market during freeze

Bill Journey

Introduced31 Aug 2022View Hansard
First Reading31 Aug 2022View Hansard
Committee31 Aug 2022View Hansard

Referred to Community Support and Services Committee

Committee Findings
Did not recommend passage

The Community Support and Services Committee examined the bill over several months, receiving over 120 submissions and holding public hearings. The committee recommended the bill not be passed, finding that while Queensland faces a genuine rental affordability crisis, a rent freeze would not address the underlying cause of high rents — a shortage of housing supply — and could lead to reduced rental stock, poorer property maintenance, and distortions in the rental market. The committee was also not satisfied that sufficient regard had been given to the rights and liberties of individuals, citing concerns about retrospectivity and natural justice. Greens member Michael Berkman MP filed a dissenting report arguing the bill should be passed as an emergency response to the housing crisis.

Key findings (5)
  • Submitters broadly acknowledged Queensland is experiencing a housing crisis characterised by near-zero vacancy rates, demand outstripping supply, and rent increases exceeding 20 per cent annually in Brisbane and over 30 per cent in some regional areas
  • The committee found that rent controls are generally not effective in improving housing affordability for renters and can lead to market distortions, including reduced rental stock and poorer property maintenance
  • The committee identified that clauses 4 and 8 of the bill raised fundamental legislative principle concerns regarding retrospectivity and natural justice, as they would invalidate rent increases after 1 August 2022 and deny lessors the right to present their case to QCAT
  • Many submitters advocated for alternative strategies including reducing the frequency of rent increases, increasing land and housing supply, adopting the ACT's CPI-linked rent increase model, and providing incentives for lessors and rent subsidies for tenants
  • The committee found the bill was compatible with human rights under the Human Rights Act 2019 but was not satisfied that sufficient regard had been given to the rights and liberties of individuals under the Legislative Standards Act 1992
Recommendations (1)
  • The committee recommends the Bill not be passed.
Dissenting views: Michael Berkman MP (Greens, Member for Maiwar) filed a dissenting report arguing the bill should be passed as an emergency response to the housing crisis. He contended that claims about rent controls reducing rental supply are not supported by evidence, citing research that tenancy regulation has no significant impact on investor behaviour. He argued the committee failed to properly appreciate the severity of cost-of-living pressures, noting that 32.3 per cent of Queensland renting households are in rental stress. He also argued that the rights of landlords to profit from an unregulated market must be weighed against the human rights of tenants facing homelessness, and that the committee's recommendation reflected the government's favouring of wealthy investors and the real estate lobby at the expense of tenants.
AI-generated summary — may contain errors
Committee Report20 Feb 2023

Committee report tabled

Second Reading
Royal Assent26 Oct 2021View Hansard

Assent date: 20 October 2021