Owners Corporations Amendment (Short-stay Accommodation) Bill 2016

Mr J. BULL (Sunbury) — It gives me great pleasure to rise to speak on the Owners Corporations Amendment (Short-stay Accommodation) Bill 2016. As we have heard this evening, this bill aims to reduce and potentially eliminate the problems caused by unruly parties in apartment buildings and to improve the livability of those buildings.

We know that this bill stems from an election commitment which involved the establishment of a panel of stakeholders to advise government on the best way to address the nuisance complaints arising from short-stay accommodation in apartment buildings. I just wanted to discuss a recent statement from the Minister for Planning which I think is certainly important in the context of this bill.

This minister is quoted as saying that 20 years ago apartments represented just 5 per cent of all new dwellings constructed in Victoria and that today they account for more than 33 per cent of buildings, so we have seen a significant increase in apartment-style living both here and certainly across developed cities throughout the world. It is important as a government to be constantly aware of the significant changes and pressures that many of our major cities are seeing. Obviously through the process enacted by the minister — the draft standards that were discussed through consultation with the community, local government and industry — we saw that the minister discussed the need to provide adequate daylight, storage, ventilation, energy and waste efficiency and minimise noise once final controls are adopted. Things like setbacks, room depth, accessibility, wastewater, energy efficiency, storage and open space are all very important when it comes to apartment living. This is really important when we are looking at both the health of individuals and certainly of the families that live in these apartments. It is imperative that they are developed and maintained in a way that is good for health.

The important point I believe when we look at the context of this bill is that the vast majority of people who use short-stay accommodation do the right thing. They respect others and behave in a way that does not upset other occupants. Certainly I would like to think that all members of this house are those types of people. They understand that you can have a good time without upsetting others, but we do know — and it is the reason for this bill this evening — that there are some who do behave inappropriately and do the wrong thing.

I note the comments of the fantastic member for Niddrie, who discussed the importance of Airbnb and his recent experience with Airbnb. I think it is a fascinating space to watch the creation of what we call disruptive technologies, but I do not really like that description because they are technologies that I know the member for Niddrie certainly had a great experience with. I can personally say accommodation through Airbnb for me has been terrific, and I think it is something that is only going to increase in the future. It is something certainly that as a state government and right across the nation we need to be aware of. These emerging markets are propped up with new fast technologies. They have got great benefits, but it is important that the legislation and regulation keep in line and in pace with these changes.

After extensive consultation with stakeholders and industry specialists the independent panel, as we have heard, found that short-stay accommodation generates a significant amount — $792 million per year, which includes $162 million in Victorian wages — and supports a massive 64 000 jobs. We know that Victoria comprises 27 per cent of the nation’s short-stay properties, and that is the equivalent of 170 000 individual properties. The Grattan Institute has reported on and discussed the success and benefits of the peer-to-peer platforms, which I have just mentioned, for businesses but also recommended that we can do more in getting the balance right between a thriving industry and amenity for neighbours who experience disruption caused by short-stay tenants. Really this is the focus of the bill.

As we have heard the bill provides amendments to the current act to benefit the owners corporations and neighbours who are subject to that inappropriate behaviour. As it currently stands there are limited or no provisions for holding anyone responsible for bad behaviour of short-term tenants. These amendments that I will discuss shortly work toward fixing and addressing that. The bill, as we have heard, will define precisely those unacceptable behaviours that we believe should be discouraged. These include excessive noise, obstruction of common property, property damage and interference with other residents who are also there to just go about their business.

The act will empower the Victorian Civil and Administrative Tribunal (VCAT) to award a loss of amenity of up to $2000 to those residents who have been affected by inappropriate behaviours, and both accommodation providers and occupants will be made jointly liable for this compensation. Civil penalties of up to $1100 can be ordered by VCAT against short-stay occupants if they are complicit in these inappropriate behaviours. It is important to understand that we respect and value the providers of short-term accommodation. That is why, if the providers can show that they took all relevant steps to prevent such behaviour, it will be a defence to this liability. So if they can prove that they have taken valid steps to deter or limit the behaviour, then certainly that will be taken into consideration.

The focus of the bill is to support the self-regulation of accommodation providers to ensure that they avoid letting their tenants become problematic. Inevitably the bill will bring an end to perpetual party houses by punishing landlords for not adequately screening short-term tenants, by protecting the rights of landlords who have done everything possible to screen those tenants and by empowering neighbours. This is certainly an important one for those neighbours who become fed up and upset with those who are performing all sorts of acts, making noise, causing distractions within their apartment and disrupting all those who are staying there. It will also allow VCAT to impose penalties on unruly short-stay occupants for a breach of behavioural conduct.

These are all very important measures and will ensure that the amenity of property is maximised while the impact on tourism is minimised. This is yet another example of this government keeping its promises and getting on with it.

Mr Edbrooke — Getting it done.

Mr J. BULL — Certainly, member for Frankston — getting it done.

It is incredibly important to note, as I said at the outset, that the vast majority of people, I believe — and I know from listening to other contributions this evening — do the right thing. It is about those people who want to upset others and want to treat these places and other people very ordinarily and not respect those who are also paying to be there and their privacy. It is about all of the things that come with staying in an apartment — things like a decent sleep, things like not having music playing at 2, 3 or 4 in the morning. They are the important things that those tenants that are there must be able to have. Certainly it is important that we have a range of measures to be able to deal with these things when they come up. I think that this is a fantastic example of how you can get legislation that balances the needs of those that want to have a good time. There are certainly a number of people who enjoy having a good time. I am sure that all members of the house, including the member for Bass and certainly the members for Eltham and Frankston, like to have a good time. There is nothing wrong with having a good time. We just need to make sure that we respect others and that we do the right thing.

Ms Ward interjected.

Mr J. BULL — I know that the member for Eltham is certainly one of those members that is a very engaging, passionate and decent member of her local community and someone who is very fun to go out with and have a chat with. What I really like about the member for Eltham is that she is someone who respects the privacy, the views and the wishes of others, and I think that is a very important thing. I think it is something that the government is very passionate about. With those comments, I very proudly and passionately commend the bill to the house.