The Victorian Government has introduced new legislation aimed at making the housing market fairer for home buyers and renters, but the Opposition says Labor’s rental reforms have created more complexity, uncertainty and disputes.
Under the proposed reforms, real estate agents will be required to publicly disclose a property’s reserve price at least seven days before an auction or sale. The changes, expected to take effect from 1 October, are designed to tackle underquoting and provide greater certainty for prospective buyers.
Properties without a published reserve price would not be permitted to proceed to auction. The legislation would also require the final sale price of a property to be publicly disclosed once sold, giving buyers more information about local market values.
Consumer Affairs Minister Paul Edbrooke said the reforms would help end situations where buyers spend time and money pursuing properties that ultimately sell far above advertised expectations.
“We’re stamping out underquoting. These new laws mean no more wasting your Saturday at auctions trying to buy a home that you could never afford,” he said.
The government noted that agents already face penalties of more than $48,000 for underquoting, as well as the risk of losing their commission.
The legislation also introduces several measures aimed at improving conditions for renters. A key reform would cap lease-break fees at a maximum of four weeks’ rent, reducing the financial burden on tenants who need to leave a rental property before the end of a lease agreement.
The new laws would also guarantee renters the right to obtain additional keys or security fobs and allow tenants to pay rental bonds directly online through the Residential Tenancies Bond Authority for the first time.
The government said the measures reflect the growing number of Victorians who rent and are intended to make renting more affordable and practical.
“No one should be trapped in a lease they can’t afford to leave, so we’re capping the cost of getting out,” Edbrooke said.
“If you’re paying rent, you’re entitled to your own set of keys, it’s that simple.”
However, the Liberal and Nationals Opposition has accused the Allan Government of presiding over a rental system that is becoming harder for both renters and rental providers to navigate.
Shadow Minister for Consumer Affairs Tim McCurdy said more than 38,500 Victorian renters lodged disputes through the rental dispute resolution system in the past year, including applications to the Victorian Civil and Administrative Tribunal and Rental Dispute Resolution Victoria.
He said the figures showed Labor’s rental framework was generating more conflict after more than 150 changes to Victoria’s rental laws.
“These figures should be a wake-up call for the Allan Labor Government,” McCurdy said.
“Labor promised a rental system that was fairer and easier to navigate. Instead, Victorians are facing growing complexity, more disputes and a housing market under increasing pressure.”
McCurdy said more than 38,500 disputes in a single year was “not a sign of a healthy rental system”, but evidence of a framework becoming increasingly adversarial.
The Opposition argues Labor’s regulatory changes have increased uncertainty and compliance costs for rental providers, contributing to weaker investor confidence and reduced rental supply.
“Every time a rental provider leaves the market, that’s one less home available for a Victorian looking for somewhere to live,” McCurdy said.
“At a time when housing affordability is already under enormous pressure, the Allan Labor Government continues to make it harder for people to provide rental housing.”
McCurdy said many rental providers were not large-scale investors, but ordinary Victorians who owned a single investment property.
“Many rental providers are nurses, teachers, tradies and small business owners who have worked hard to invest in one property and rely on that income to help meet mortgage repayments and support their families,” he said.
“When problems arise, they are increasingly being forced into lengthy and complex dispute resolution processes that leave them out of pocket and frustrated.”
The Opposition said the government’s claim that it had balanced the interests of renters and rental providers was becoming increasingly difficult to accept.
“When tens of thousands of Victorians are being forced into formal dispute resolution processes every year, it is clear the system is not working,” McCurdy said.
“Victoria needs a rental system that protects renters, supports rental providers and encourages investment in new housing supply.”
The reforms form part of the government’s broader housing affordability agenda and will now be considered by the Victorian Parliament.
If passed, the changes would represent one of the most significant updates to Victoria’s consumer and rental laws in recent years. But the political fight over the legislation is likely to centre on whether stronger protections will make the housing system fairer, or whether more regulation will further discourage investment in an already tight rental market.
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