Thailand - Earthquake Provides A Wake Up Call on Safety

March 31, 2025 Edward Dever

The earthquake in Myanmar on 28 March which also rattled Bangkok was a wild ride.

With some exceptions, including the construction site near Chatuchak, Bangkok emerged relatively unscathed. The devastation in Myanmar is a different story.

In the days and weeks ahead, we are likely to see further examples of building damage as inspections are completed.

Bangkok is quite well known for feeling the effects of earthquakes in places such as Myanmar or Indonesia. Normally, the impact is minimal. Friday's quake was the strongest by far for many years. Past earthquakes of similar intensity caused by the Sagaing Fault in Myanmar were recorded in 1839 and 1930.

Post-earthquake, building safety standards and evacuation procedures may come into focus.

On one restructuring a number of years ago, we implemented a rigorous approach to workplace safety, particularly in relation to building evacuations.

For the Head Office on the 35th floor in Bangkok, we looked at examples of companies involved in the collapse of the Twin Towers on 9/11. Some of the companies that had been affected by the 1993 basement bombing of the WTC North Tower subsequently had very strict evacuation procedures in place which assisted evacuations on 9/11. In one case, the company fitted backpacks to the back of employees' chairs containing a face mask, light and bottle of water. Another company made evacuation mandatory if there was an incident involving the other tower.

We implemented a multi-pronged approach to improving employee safety which included:

- a company-specific evacuation drill independent of the annual building drill.

- walking all fire stairs periodically to ensure there were no blockages.

- ensuring office emergency exit signs had working light bulbs so they would illuminate in the event of a power outage.

- educating employees on how many emergency exits there were and splitting the office into zones to ensure the use of all exits on an evacuation.

- placing employee lists at emergency exits so fire wardens could complete headcounts at ground level.

- storing glow sticks at emergency exits to use in case of stairwell lighting failure.

- instructing employees not to listen to anyone on the fire stairs advising them to return to their office. It was compulsory to go to the ground level and wait for an update from the company's fire wardens.

We also conducted reviews of all other offices and implemented procedures to improve safety standards. One could never rule out a fire or other incident occurring but, by improving safety standards, we could improve the chances of all employees being safely evacuated.

In the case of the Head Office, I thought it was more likely that it would be hit by an errant Government helicopter passing through the nearby air traffic corridor than a fire. We planned for a number of possible scenarios.

BBC News - Water spills from rooftop pool as Bangkok building sways

March 2025

The content of this publication is intended to provide a general overview on matters which may be of interest. It is not intended to be comprehensive. It does not constitute advice in relation to particular circumstances nor does it constitute the provision of legal services, legal advice or financial product advice.

NSW Leads The Charge on Lithium-ion Battery Safety

January 13, 2025 Edward Dever

The Coroners Court of NSW recently announced it will hold an inquest to examine deaths and serious fires caused by lithium-ion batteries, amid concerns that the batteries are causing approximately five fires in NSW per week.

This inquest into lithium battery fires will examine if any changes can be made to stop similar deaths, fires or explosions in the future.

NSW Inquest - Lithium-ion battery fires

New South Wales is also cracking down on the sale of certain ebikes and e-scooters in a nationwide first aimed at reducing battery-related fires, while pushing for a nationally coordinated approach to the issue.

Under the rules announced in August 2024, ebikes, e-scooters, hoverboards and e-skateboards will become “declared electric devices”. The battery-powered devices will need to meet a set of internationally accepted product standards, including appropriate tests and certification. Vendors of non-compliant devices will face heavy fines commencing February 2025.

NSW closes loophole to stamp out fires

Many lithium-ion battery fires seem to be the result of the use of incorrect or poor quality chargers or other incorrect charging practices.

This issue is of particular concern to landlords who may not be aware that tenants are charging ebikes and e-scooters in their rental properties. Recommendations from some experts that charging only be done outside is not practical in many circumstances. In addition, fire blankets suitable for lithium-ion battery fires do not seem available so far at an economical price. Some strata buildings have taken the extreme step of banning ebikes and e-scooters altogether.

A nationwide approach to product safety standards may assist in dealing with this issue.

January 2025

Queensland Election Results - Another Nail In The Rent Cap Coffin

November 6, 2024 Edward Dever

The ousting of the Miles ALP government in Qld at the recent State election makes the prospect of residential property rent freezes and caps in Qld more remote.

In the lead up to the State election, Ch 9 News reported that the now former Qld Government was considering ACT style inflation-linked rent controls. Former Premier Miles said he would have more to say on the issue as the election campaign continued. Nothing seemed to come of this.

At the first Leaders’ debate, the LNP ruled out introducing rent caps. The ALP took a similar stance, making former Premier Miles’ other comments somewhat confusing.

Previously, in June 2024, the Qld Department of Housing, Local Government, Planning and Public Works stated that it believed forms of rent control are generally ineffective.

During the 57th Qld Parliament, The Greens twice attempted to introduce rent control legislation, in each case the relevant Committee recommended against its introduction and the Bills were scrapped.

The Greens were apparently initially targeting 10 seats during the State election campaign . The results leave them with one, and possibly, two seats. One of the seats in doubt is South Brisbane held by Greens MP Amy MacMahon. Counting is still underway. Ms MacMahon introduced the two previous Rent Cap Bills and the loss of South Brisbane to the ALP would remove The Greens’ most outspoken rent cap spokesperson in Qld Parliament.

Federally, even The Greens housing spokesman Max Chandler-Mather is watering down their demands and is no longer insisting on a national rent freeze:

“We don’t need a freeze on rent increases like we’ve said … we could negotiate on some sort of cap to limit the amount rents go up,” he said.

In the lead up to the 2025 Federal election, it is likely that The Greens will continue to campaign on rent caps. Any rent control legislation would, however, need to be passed by the Qld Parliament and the election of the LNP in Qld indicates that passing any such legislation would be a tough sell.

Report No. 7, 57th Parliament, Housing, Big Build and Manufacturing Committee, May 2024

November 2024

Property Sector in Political Crosshairs Again

September 27, 2024 Edward Dever

Rent controls, National Renters Protection Authority and negative gearing changes.

In the lead up to the 2024 Qld State election, Ch 9 News is reporting that the Qld Government is considering ACT style inflation-linked rent controls.

Sounds like a pre-election thought bubble. Any move towards greater rent controls in Qld runs contrary to the position of the Government's own Department of Housing, Local Government, Planning and Public Works

In May 2024, the Department stated that it believed forms of rent control are generally ineffective.

The ALP risks losing several seats to The Greens at the October election so it is not surprising that they may make election promises that seek to limit voter bleed to The Greens.

Meanwhile, The Greens want to implement a National Renters Protection Authority.

Costing $200m per annum and staffed by 1,000 public servants, the NRPA would investigate rental breaches as well as offering advocacy, advice and education to renters around Australia.

The NRPA would deal with tenancy disputes and enforce the minimum standards the Greens want, including rent freezes, ventilation, heating, cool and insulation standards. The NRPA is part of a wider $2.5b Greens Plan to convince the States to enact rent freezes.

How the NRPA would work in practice is unclear. There seems significant overlap with the role of State Government Departments.

Victoria, as an example, is planning to implement far reaching housing standards to include heating, cooling and insulation.

Qld's latest round of rental changes come into force on 30 September 2024. These include new standards for re-letting costs, methods for paying rent, timelines for utility bill payments, and supporting evidence for bond claims.

NSW is also moving towards tightening the rules for no-default evictions.

And just to top it off, media reports indicate that the Federal Government has asked Treasury to look at the implications of changing negative gearing rules.

Lots of political obfuscation peppered with some denials by Government members.

Similar to the Government's superannuation changes which targeted the higher end of superannuation balances, it wouldn't be surprising to see the Government target negative gearing changes, for example, at the 5% of landlords who own 6 plus properties.

Any uncertainty over rent controls and negative gearing just reinforces nervousness amongst investors at a time when Australia needs greater investment in rental housing.

Ch 9 News - Rent Controls

Report No. 7, 57th Parliament Housing, Big Build and Manufacturing Committee, May 2024

National Renters Protection Authority Plan

Negative Gearing Changes

September 2024

Thai Constitutional Court Plays Whack-A-Mole On Popular Party

August 20, 2024 Edward Dever

This previous post posed the question - can Thailand move forward following the electoral victory of the Move Forward Party?

It seems not.

The recent Constitutional Court decision to dissolve the MFP over its election platform advocating reform of the lese-majeste provision under Thailand’s Criminal Code sends a clear message.

Reforming this provision to prevent its misuse as a political tool was only part of MFP’s bold plan to shake up the institutions of power in Thailand. Their plans received broad electoral support, including winning all except one seat in Bangkok in the May 2023 election.

The Constitutional Court has now ruled that the reforms pose a threat to both the monarchy and the democratic form of government with the monarch as head of state.

The Court also imposed a 10 year ban on 11 members of the Party’s executive team. Each remaining MFP MP must join another political party within 60 days or lose their status. (MFP was outmaneuvered following the 2023 election by Thaksin’s Pheu Thai Party and military aligned and other minor parties who formed the requisite majority. Around this time, Thaksin returned to Thailand, ending 15 years in exile.)

A new successor party has quickly been established, the People's Party, which plans a similar reform platform ahead of the 2027 election.

The lese-majeste provision has been interpreted very broadly by Thai courts. There have been examples where even a like on Facebook or a simple comment - ‘yeah’ (in Thai) in response to a social media post have fallen foul of the provision. Lengthy jail terms have ensued. Often, prosecutions have also involved a provision under the Computer Crime Act - entering false data in a computer system - effectively doubling the jail term.

Fourteen million Thais voted for MFP in the 2023 election, with broad support in Bangkok. Voter reaction to the Constitutional Court’s decision remains unclear. However, any stumbles or overreaching by the Government may bring protesters back to the streets. The Constitutional Court engaging in a game of whack-a-mole for every MFP successor party may have a similar effect.

Disbanded Thai Opposition Party Rebrands as ‘People’s Party’

August 2024

Gold Coast City Council Taxes Views

August 4, 2024 Edward Dever

In a move reminiscent of the window tax applied in England between 1696 and 1851 (as well as similar taxes in France and Scotland), Gold Coast City Council has introduced higher rates charges for owner occupied apartments on higher floors.

Dubbed the 'view tax', owner occupied apartments will be levied higher rates depending on the floor level.

Apartments above the 5th floor will be subject to a rates surcharge starting at 10-20% between floors 5-10 up to 40-50% for those above the 40th floor.

Council justifies the increased charges on the basis of charging owners fairly based on the effect that unit size and floor level has on a property’s value.

In simple terms, Council is implementing a wealth tax - taxing those residents it deems able to afford higher rates. This is similar to the window tax. It was designed to reflect a property owner's wealth as glass was apparently considered a luxury. It led to owners bricking up their windows to minimise the tax. Of course, as it is based on the floor level and not the view, Gold Coast residents will find it harder to avoid the rate increase.

Gold Coast high-rise apartment owners hit with 'view tax' as council raises rates

August 2024

United States Plans Nationwide Rent Controls - With A Catch

July 17, 2024 Edward Dever

US President Joe Biden has announced a plan ahead of the 2024 US Election to cap rent increases across the nation at five per cent per annum.

On 16 July 2024, the Biden-Harris Administration called on Congress to pass legislation giving corporate landlords a choice to either cap rent increases on existing units at five per cent or risk losing current valuable federal tax breaks.

The proposal would apply during 2024 and the following two years but would only apply to corporate landlords who own at least 50 units of housing stock. Over 20 million units of rental housing would be affected by the proposal. An exception would apply to new construction and substantial renovation or rehabilitation.

Failure to comply would see these landlords unable to take advantage of faster depreciation write-offs available to owners of rental housing.

It seems unlikely Congress will get on board with the rent control proposal, particularly in the run up to the 2024 Election in November. (As an aside, former President Trump's son-in-law Jared Kushner's somewhat controversial family group controls 20,000 multi-family apartments and would be caught by President Biden's proposal.)

The Australian Greens will no doubt pick up on this proposal. Their plans to date have not included a minimum rental housing ownership threshold before their controls kick in. Their plan also has no sunset date - two years of rent freezes followed by a maximum two per cent increase every two years thereafter. The Federal government has repeatedly distanced itself from the Greens proposal. The Queensland government has also shut the door on rent controls - for now.

President Biden Announces Major New Actions to Lower Housing Costs by Limiting Rent Increases and Building More Homes

July 2024

Queensland Government Shuts The Door On Rent Controls - For Now

May 20, 2024 Edward Dever

On 10 May 2024, the Housing, Big Build and Manufacturing Committee released its report on the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024.

One of the more interesting matters in the Report is a statement that the Department of Housing, Local Government, Planning and Public Works believes forms of rent control are generally ineffective.

The Report (on page 20) states:

"the department noted that economic research has identified that rent price controls, such as restricting or limiting the amount rent can be increased by, are generally ineffective at improving rental affordability and can have other negative effects, such as reducing the quality of rental stock and reducing renter mobility. They noted that the best way to address rental affordability is by increasing housing supply."

The Greens continue to press the Federal Government to introduce a form of rent freeze followed by rent caps.

As recent as 16 May, Greens MP Max Chandler-Mather, commenting on Twitter/X about PM Albanese's move to evict his tenant ahead of a likely property sale, stated that "[i]f the Prime Minister wanted to treat renters fairly, he would coordinate a freeze and cap on rent increases". The Greens are unlikely to drop rent controls as part of their platform ahead of the next Federal election.

The Committee concluded that the Government's Bill should be passed although it noted a number of areas where the Department needed to do more homework.

These include:

- the time frame for the retention of tenant records

- wider consultation on a portable bond scheme

- the documentation needed for utility bills payable by tenants

- the prohibition of accepting more than four weeks rent in advance, and

- disclosure in leases of the last rent increase as it applies to newly purchased properties.

The Bill, when enacted, will restrict residential property rent increases to once every 12 months and apply the restriction to the property rather than the lease.

It will also legislate that a landlord cannot act unreasonably in refusing a tenant’s request to attach a fixture or make structural changes to the premises either relating to safety, security and accessibility, or for personalisation purposes. Tenants may seek recourse through QCAT if denied approval. This also applies to modifications related to strata common property with strict timeframes for strata approval.

Over time, we will see if some of these provisions act as a further disincentive to residential rental property investment in Queensland.

UPDATE - The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024 was passed by Parliament on 23 May 2024.

Report No. 7, 57th Parliament Housing, Big Build and Manufacturing Committee May 2024

May 2024

Queensland Government Shelves Plans To Amend Property Valuation Laws

May 9, 2024 Edward Dever

Last week, the Queensland Government shelved proposed land valuation amendments under the Land Valuation Amendment Bill 2023.

Resources Minister Scott Stewart pulled the proposed amendments for further consultation and revision, a process which should push out any progress beyond the October 2024 State election. It is not clear whether a future LNP Government (if elected) will proceed with the amendments.

Much of the stakeholder feedback on the Bill centred on the introduction of binding Valuer-General guidelines for valuations with concern raised that there would be no prior consultation and future guidelines could enhance property values resulting in higher land taxes and Council rates.

Also of concern was the proposal to remove the $750,000 threshold which requires a person objecting to a valuation to advise the Valuer-General of the valuation sought. This would require all landowners to state the valuation sought in their objection and would increase the costs of lodging an objection.

Changes to the definition of “unencumbered” were also considered controversial, resulting in uncertainty over how land is to be valued.

Qld land valuation laws shelved by government following input from property industry

May 2024

Further Proposed Changes to Queensland Residential Tenancy Legislation

April 2, 2024 Edward Dever

On 21 March 2024, the Queensland Government introduced the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024.

The Bill’s purpose is to further strengthen tenants’ rights and stabilise rents in the private rental market.

The proposed amendments include:

- adopting a standard rental application form (as yet only partially specified) which limits the information a tenant need provide.

- applying the 12 month rent increase restriction to the property rather than the lease, regardless of a change in property ownership. Lease breaks may lead to rent increases during future lease terms rather than at the commencement of the lease term.

- requiring leases to state the date of last rent increase, with tenants permitted to request evidence of such increase. Existing leases are exempt.

- prohibiting rent bidding, including accepting an unsolicited offer higher than advertised.

- capping reletting costs in the event of a lease break.

- legislating that a landlord cannot act unreasonably in refusing a tenant’s request to attach a fixture or make structural changes to the premises relating to safety, security and accessibility. Tenants may seek recourse through QCAT if denied approval.

- capping rent in advance payments to a maximum of 4 weeks rent - the amendment changes the prohibition on requiring an advance payment to accepting an advance payment. This may necessitate refunds in certain circumstances to prevent breaches although perhaps less problematic with periodic payment arrangements.

- adding new time limits for the provision of water service charges payable by a tenant.

One of the Bill’s stated aims is to improve the rental experience for Queensland renters and property owners. Some landlords may contend that the seemingly endless legislative amendments are having the opposite effect. Agents are also facing more compliance tasks and complicated leasing arrangements.

The deadline for submissions on the Bill is 10 April 2024.

RTA - Have your say on new rental law reforms

April 2024