30-12-1899

May 2006 Report

1. News
2. 1999
3. December

MAY 2006 REPORT

The following is a round up of some political and or regulatory issues monitored by the Federation.

TENANT DAMAGES BILL

First reading complete The Residential Tenancies (Damage Insurance) Amendment Bill completed its first reading in Parliament on 3 May and has been referred to the Social Services Select Committee for consideration. The Bill aims to protect tenants against personal liability for damage they were not responsible for. The Committee has invited written submissions that close on 14 July 2006. The Federation will be OPPOSING the Bill for a number of reasons including that: there does not appear to be widespread tenant pressure for change, landlord groups were not consulted, that the Bill abrogates tenant responsibilities, penalises landlords and the Bill ought to be withdrawn and its provisions considered as part of the full review of the Residential Tenancies Act.

UNIT TITLES ACT

Review commenced Written submissions commenting on the review of the Unit Titles Act closed Friday 2 June. The discussion document, “Unit Titles Act: Options for Change”, canvassed proposals including:

• Redefining the responsibilities of bodies corporate and unit owners
• Suggested improvements to decision-making and dispute resolution processes
• Changed definitions for common property and unit entitlement, and
• Enhanced consumer protection measures

HOUSING RESTRUCTURING & TENANCY MATTERS (INFORMATION MATCHING) AMENDMENT BILL

2nd reading due The Social Services Select Committee completed its consideration of the information-matching bill during the month. By way of background, the Bill seeks to authorise HNZC to disclose information about tenants and tenancies to MSD. The Federation lodged a written submission urging that the bill be extended to enable the Ministry of Social Development (MSD) to supply the Department of Courts and its officials, specific address for service data, so that improved tracking and better enforcement of court-ordered money orders maybe enforced. Parliament is expected shortly to receive the committee’s report, debate and pass the Bill.

BUDGET 2006

Housing-related The Budget (May 18) announced the following significant housing-related initiatives:

• $16.4m more in funding for new and renovated houses provided by local councils and community organisations.
• Changes to the Weathertight Homes Resolution Service and $30.5 million over the next four year, and $7.1 million for lending assistance over the two-year pilot

DEPRECIATION

Fitout The media (30 May) has reported that the IRD are shortly to issue new rules on the depreciation of building fit out items. For example, these items include those that are permanently affixed to the structure such as partitions, electrical wiring, plumbing and vinyl flooring will be depreciated at the building depreciation rate of 3%. The new ruling and lower rate of depreciation basically means it takes longer to get the full depreciation claim and cashflow is likely to be reduced in the early years of an investment property.