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NSW is looking to legislate how data related to prospective and current tenants is collected, stored and destroyed.
A discussion paper released by the NSW government has revealed that Premier Chris Minns intends to make good on a number of his election promises in the rental sector.
And while the items that have gained the most notice include ending no-grounds evictions, closing a loophole that allows landlords to raise the rent more than once in a 12-month period, and making it easier for tenants to keep pets, its proposals around digital security are also significant.
The exact nature of the data protection requirements are still to be determined, pending the results of the consultation, but broadly the government has said it’s aiming to create a legal framework for real estate agents to follow when handling renters’ personal information.
In announcing the government’s intentions, Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, explained that the data privacy measures were being considered as a way to ensure certain cohorts of renters were not being unfairly disadvantaged in the tenant selection process, and that all prospective renter information was being correctly handled after the application process had ended.
Amendments that the government is considering include limiting what information can be collected from applicants, restricting how renter information is used and disclosed, outlining how renter information should be kept and destroyed, and giving renters the right to see and correct information held about them.
The discussion paper noted that in proving identity as well as financial security, prospective tenants are often asked to provide copies of their driver’s licence, Medicare card, passports, work details and banking information. This information, were it to fall into the hands of the wrong person due to a cyber attack, is more than enough to make someone the subject of a catastrophic level of fraud.
“Applicants may be asked to provide far more personal information than is needed,” the paper flagged. “This risks exposing their personal information to cyber attacks or data breaches. It can also lead to unfair or discriminatory outcomes. These risks are greater in the current rental market as applicants may need to apply for multiple properties,” it continued.
Currently, NSW does not have specific laws regulating what information can be collected from rental applicants or how it must be handled and destroyed. NSW Digital Identity is also being trialed in NSW, which may make it easier for renters to prove their identity, but as the paper noted, a full roll out of the digital identity is a long way off.
The Australian Privacy Act 1988 (Privacy Act), meanwhile, regulates organisations with an annual turnover of over $3 million. This is estimated to cover around 45 per cent of real estate agencies, and legislates that those entities “not to use or disclose confidential information unless the client or customer authorises this use, or it is otherwise required by law”.
While the federal government is considering removing the annual turnover threshold in the Privacy Act, the NSW government noted that renters would still not be fully protected, as the law does not apply to landlords, and such a change could take some time to come into effect.
Those wanting to ensure they’re on the front foot now can reference a March 2023 guide issued by the Fair Trading Commissioner, which provides best practice advice on dealing with personal information collected during the rental application process.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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