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Real Tenancy that's good for the economy
Released 22 October 2010

The Australian economy recovered relatively well by world standards following the global financial crisis, largely due to a strong property market.  

Property isn’t as vulnerable to global shocks as notoriously volatile sharemarkets – when sharemarkets suffer, so do economies.

Why, then, is the NSW government creating disincentives to property investment that will weaken our economy and drive would-be landlords away from real estate? These include over-regulation of the sector and inadequate resourcing of dispute resolution facilities. 


Over-regulation

The State Government recently introduced the Residential Tenancies Act 2010 (uncommenced as at October 2010), a highly prescriptive piece of legislation with 227 sections. When you consider that equivalent Acts in the ACT and Western Australia have 120 sections, it is clear that real estate professionals in NSW are over-regulated.

Through its Real Tenancy policy, REINSW is lobbying the State Government to implement a regulatory regime that is user-friendly, rather than needlessly complex. This will entice investors to enter the property market and contribute to the overall health of the economy. 


Resources

The need for reform extends to dispute resolution facilities, particularly the Consumer Trader and Tenancy Tribunal (CTTT). Additional compliance obligations under the new residential tenancies legislation will most likely result in an increase in applications to the CTTT. This will, in turn, cause lengthier delays between application and determination.

The NSW Government must give the CTTT the necessary resources and personnel to meet the growth in demand for its services. This commitment of resources must also extend to rural and regional NSW.


Fair outcomes

REINSW is also seeking to address apparent inconsistencies in decisions made by different Tribunal members on some of the more common categories of disputes. Publishing more decisions online and increasing the use of Chairperson’s Directions would help minimise these inconsistencies.

REINSW will also lobby for the allocation of tenancy matters to a specialised panel of members with expertise in the area. This can only be achieved through the reinstatement of a specialist Tenancy Tribunal, as was the case prior to the formation of the CTTT.

For more information on the REINSW Real Tenancy policy, please visit www.reinsw.com.au/realtenancy