A Bill for an Act to amend the law relating to federal financial relations and the Reserve Bank of Australia, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act is the Freeze on Rent and Rate Increases Act 2023.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information |
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this Act | The day after this Act receives the Royal Assent. | |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedules
Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Part 1—Rent increase freeze
Federal Financial Relations Act 2009
1 Section 4 (subparagraph (b)(iii) of the definition of designated housing agreement)
Omit “matters; and”, substitute “matters;”.
2 Section 4 (at the end of paragraph (b) of the definition of designated housing agreement)
Add:
(iv) model tenancy standards; and
3 Part 3B (heading)
Omit “and housing affordability matters”, substitute “, housing affordability matters and model tenancy standards”.
4 At the end of section 15B
Add:
· Payments relating to model tenancy standards may be made to a State if the State is a party to a designated housing agreement.
5 At the end of Part 3B
Add:
15DA Payments relating to model tenancy standards—designated housing agreement
(1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with a designated housing agreement to which the State is a party.
(2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.
(3) Financial assistance is payable to a State under this section on condition that:
(a) the State implements model tenancy standards in accordance with the designated housing agreement; and
(b) the financial assistance is spent in accordance with the designated housing agreement.
(4) For the purposes of paragraph (3)(a), model tenancy standards include the following:
(a) rent control measures which provide that:
(i) rental prices of existing rental properties must not exceed the price the property was rented at on 1 January 2023 for a period of 2 years beginning on the agreement commencement date; and
(ii) if the tenant of a rented property changes after the agreement commencement date, the rental price must not exceed the price the property was rented at on 1 January 2023 for the duration of the period mentioned in subparagraph (i); and
(iii) if a property is substantially renovated after the agreement commencement date and rented, the price the renovated property is rented at must not exceed the median rent price for a property of the same type in the same postcode as the renovated property for the duration of the period mentioned in subparagraph (i); and
(iv) if a property was not rented on the agreement commencement date and is rented after the agreement commencement date, the price the property is rented at must not exceed the median rent price for a property of the same type in the same postcode as the property for the duration of the period mentioned in subparagraph (i); and
(v) after the period mentioned in subparagraph (i), increases to rental prices are limited to a maximum of 2% every 2 years;
(b) a ban on no‑grounds evictions, including at the end of a fixed‑term tenancy agreement;
(c) a ban on sale of premises evictions;
(d) any other matters set out in the designated housing agreement.
(5) For the purposes of subsection (4), the agreement commencement date means the date the designated housing agreement commences.
(6) The Minister must take all reasonable steps to ensure that the Commonwealth enters into designated housing agreements with States by 30 June 2024.
(7) Financial assistance payable to a State under this section is subject to such additional terms and conditions (if any) as are set out in the designated housing agreement.
Part 2—Rate increase freeze
Reserve Bank Act 1959
6 Before subsection 11(1)
Insert:
(1A) The object of this section is to ensure that the Government is ultimately responsible for monetary and banking policy.
7 At the end of subsection 11(4)
Add:
Note: A recommendation that the Treasurer submits to the Governor‑General could, for example, be a recommendation for an order to be made determining that the Reserve Bank Board set the cash rate target and the interest rate on exchange settlement balances at an amount specified in the order for a specified period of time.