A loophole in newly passed Queensland laws could incentivise landlords to end leases after six months, bypassing the yearly limit on rent rises by bringing in new tenants, critics say.
The state government passed last-minute amendments on Tuesday to limit the frequency of rent increases to once a year. The government said the legislation – added to the Palaszczuk government’s electoral reform bill – was passed in a hurry to respond to the state’s housing crisis.
Due to be implemented from 1 July, the changes will bring the state in line with other Australian jurisdictions, including Victoria, South Australia, Tasmania and New South Wales.
The premier, Annastacia Palaszczuk, said the laws would give Queenslanders “a fair go” and that the government will also begin public consultation on stage two rental reforms.
The chief executive of the Queensland Council of Social Service (QCOSS), Aimee McVeigh, supported the changes but urged landlords to do the right thing.
“It would be concerning if landlords did end lease agreements every six months to circumvent this new law, which is aimed at making renting fairer,” McVeigh said.
“The Palaszczuk government needs to monitor and review this legislation to ensure it is having the effect they intended.”
QCOSS and the Make Renting Fair campaign are also calling on the Queensland government to limit the amount by which rents can be increased.
“We need rental reform that ensures the basic right to shelter is accessible by all Queenslanders,” McVeigh said.
Jackson Hills, policy and strategic engagement manager at Q Shelter, said there was “more work to do” on housing reform.
“We acknowledge the speed at which the state government has moved to make changes to how frequently rents can increase in Queensland,” Hills said.
“I note that other commentators have cited some challenges with this legislation and of course there is more work to do on wider rental market reforms as well.”
Julie Bartlett, a solicitor for Tenants Queensland, said the organisation welcomed the rent cap laws.
“Tenants are in the more vulnerable position here, whose rights have been diminished by this current housing crisis and the ever-increasing rent cycles of the past,” she said.
But Greens MP for South Brisbane, Amy MacMahon, said the changes would leave renters exposed.
“For anyone on a six-month lease, what this amendment does is create a perverse incentive for a landlord or a real estate agent to kick someone out because the 12-month period only applies if you have the same tenants in a property,” she told parliament.
“If you kick someone out after six months, you could still increase the rent.”
The chief executive of the Real Estate Institute of Queensland, Antonia Mercorella, was also critical of the changes.
“As a property investor, you may have negotiated a rent increase that you have banked on and budgeted for and now this has been stripped away,” Mercorella said in a statement.
“It’s one thing to introduce rent control from a certain date onwards, but it’s a whole other proposition to retrospectively create laws that override previously agreed contractual arrangements.”
Guardian Australia contacted the deputy premier and planning minister, Steven Miles, for comment. His office referred to comments Miles made in parliament on Tuesday that accused the Greens of “grandstanding” on the issue.
“I would also urge them to consider that this is one element of a wide range of reforms that the minister has today commenced consultation on,” Miles said.
“What we just saw from the Greens political party was their continued opposition to the good, demanding the extreme, opposing incremental progress even though they know there is more to come, but doing so for their own political benefit and grandstanding.”
