Longer rental agreements and stronger protections for tenants are being proposed by the Australian Council of Trade Unions, which is calling for a national minimum rental lease term of at least two years as part of broader efforts to improve housing security for workers.
The ACTU wants the Federal Government to establish a new national standard for rental agreements while also introducing stronger safeguards against unfair evictions and what it describes as rent gouging. Under the proposal, tenants would retain the option of choosing a shorter lease if that better suited their circumstances.
The push reflects growing concern about the impact of housing affordability and rental insecurity on workers, particularly those who need to live within reasonable travelling distance of their workplace.
ACTU President Michele O’Neil says the organisation has entered the housing debate because many workers are finding the process of securing and maintaining suitable accommodation both stressful and increasingly unaffordable.
One of the union movement’s concerns is what happens when rental agreements reach the end of their term. O’Neil says lease expirations can become a point at which rents increase, while having to move repeatedly can make it difficult for workers to secure accommodation close to their employment.
Longer leases could potentially provide tenants with greater certainty about how long they can remain in a property. For households with children, workers tied to a particular employment location and people who want greater residential stability, a two-year agreement could reduce the disruption associated with frequent moves.
The ACTU’s proposal would not require every tenant to commit to a longer rental period. Renters who prefer flexibility would still be able to choose shorter lease agreements, meaning the proposed standard is intended to increase options and security rather than remove the availability of shorter arrangements.
Housing location is another major element of the ACTU’s argument. O’Neil says workers need to be able to live close to their jobs, otherwise a substantial proportion of their earnings can be absorbed by rent, mortgage repayments or the cost of commuting.
That concern extends beyond major metropolitan areas. Housing availability in regional communities can directly affect the ability of employers and essential services to attract and retain staff.
O’Neil specifically points to nurses, teachers and aged care workers as examples of employees who need access to housing in the communities where their services are required. If suitable housing is unavailable or unaffordable, filling essential positions can become increasingly difficult.
The issue demonstrates how rental affordability can have consequences beyond individual households. A shortage of affordable rental accommodation in a particular area can influence workforce mobility, recruitment and the ability of businesses and public services to operate effectively.
The proposed changes would add another dimension to the ongoing debate over the balance between tenant protections and the rights of rental property owners.
For renters, longer agreements can provide increased certainty and reduce the risk of needing to relocate frequently. For landlords, however, tenancy regulation can influence how properties are managed, how quickly circumstances can be responded to and the overall attractiveness of residential property as an investment.
Any national reform would also need to account for the existing role of states and territories in regulating residential tenancies. Lease conditions, eviction rules, rent increases and other tenancy matters are currently governed through jurisdiction-specific legislation, meaning the implementation of a national standard could require significant coordination.
Rental conditions have become a prominent housing issue as households deal with higher accommodation costs and tight availability in many markets. When vacancy rates are low, renters often have fewer properties to choose from, which can make moving at the end of a lease particularly difficult.
Longer tenancy periods could offer greater stability, but the broader affordability challenge also depends on the supply of available homes. Increasing rental supply, encouraging new housing construction and ensuring infrastructure keeps pace with population growth remain important parts of addressing pressure in rental markets.
The ACTU’s intervention highlights the increasingly close relationship between housing policy and workforce policy. Where people live can determine which jobs are practical for them to accept, how much they spend travelling to work and whether essential workers can remain in high-cost communities.
For employers, housing shortages can become a recruitment problem. For workers, they can create difficult choices between paying higher rents, travelling longer distances or relocating to areas where housing is more affordable.
Whether the ACTU’s proposed national standard receives Federal Government support remains part of the broader policy debate, but the call for minimum two-year leases adds another proposal to the growing discussion about rental security.
With housing affordability affecting both household finances and labour mobility, the debate over tenancy reform is increasingly about more than the relationship between landlords and renters. It also raises wider questions about whether workers can access stable housing in the communities where their skills and services are most needed.
