Changes to Rental Legislation
When you’re renting, it can be difficult to keep up with exactly what’s expected of you. Each state and territory has its own Tenancy Act, so roles and responsibilities vary slightly depending on your location. Rental laws are also notoriously dynamic, with legislation regularly tweaked to suit evolving political, economic, and social priorities.
This is particularly true at the moment, as governments consider how to tackle housing shortages and cost of living challenges. This has led to a raft of proposed changes to tenancy legislation, with each jurisdiction adopting a slightly different approach. It also comes on the back of many states introducing new rules to provide greater protection and certainty to tenants.
Here we take a closer look at the key changes introduced in each state over the last couple of years. We also explore the additional measures currently being discussed and the potential impact these could have on tenants.
ACT
In March, the ACT Government passed the Residential Tenancies Legislation Amendment Act 2023, which was designed to make rental laws clearer, fairer, and more effective. This amendment:
Removed the allowance for landlords to end a tenancy without justification (a.k.a. issuing a “no cause” notice to vacate).
Required supporting evidence justifying the reason for eviction – this could be a statutory declaration, sales contract, quote for renovations, etc.
Outlawed rental bidding – applicants can still offer above the advertised rate, but this must not be actively encouraged by the landlord or property manager.
Broadened the definition of retaliatory evictions to include evicting tenants who have spoken to the media – or posted to social media – about their lease arrangement.
Established requirements for ceiling insulation for rental properties – landlords have until 30 November 2026 to ensure properties meet the new minimum standard.
Classified planting a vegetable, herb, or flower garden, and setting up a removable compost bin, as “minor modifications” – as such, landlords cannot refuse a request to make these changes without a reasonable excuse.
These new measures came into effect on 1 April 2023 and continued significant reform works that began in 2016. Previous amendments limited upfront costs for tenants, increased termination notification periods, and capped access to tenanted properties during sales campaigns. They also enabled the Government to set minimum standards for rental properties and strengthened the formal dispute resolution process.
New South Wales
In December, the NSW Government implemented rules preventing property managers from actively encouraging applicants to offer over the advertised rate. All rental listings must now also include a fixed price, not an indicative price range or an “offers from” price. Property managers can still accept offers above the advertised rate, but these must be voluntarily made by the applicant.
Earlier this year, legislation was proposed that would extend this ban, closing loopholes and further limiting rent bidding practices. However, this was abandoned after both tenant and landlord advocacy groups raised concerns about potential negative impacts on the market.
The NSW Government has since released a discussion paper proposing a range of other changes, including:
Removing the allowance for landlords to give tenants notice to vacate without justification (a.k.a. “no grounds” evictions).
Easing restrictions on tenants having pets.
Increasing data security requirements for property managers.
Establishing a portable bond scheme that allows bond monies to be transferred between properties.
Increasing visibility of rent increases and removing the allowance for multiple increases in a single year.
Public feedback is currently being sought on these proposed amendments, with decisions on their implementation to be made over the coming months.
Northern Territory
Rental legislation has remained largely unchanged in Northern Territory, at least for the last couple of years. Some emergency measures were introduced to help tenants adversely impacted by restrictions implemented to limit the spread of COVID-19. However, these generally ceased to apply on 16 June 2022.
Beyond that, the only other significant amendment made recently was a relaxing of the restriction on keeping pets. Since 1 January 2021, landlords haven’t been allowed to object to a pet that is considered reasonable for the size and style of property. However, tenants still need to notify their landlord of their intention to bring a pet into the property.
Queensland
The Queensland Government is in the process of rolling out a range of changes to the state’s rental legislation. These have been broken into multiple stages, the latest of which came into effect on 1 July. This increased the minimum period between rent increases to 12 months and proposed applying this limit to the property, not the tenancy (public feedback is currently being sought on this proposal).
The next round of reforms will apply from 1 September and will establish a minimum standard for all rental properties. Under this amendment, landlords will need to ensure that, before any new tenancy begins, the property:
is structurally sound, in good repair, and has functioning fixtures and fittings
is free of mould and vermin
has functioning locks on all external doors and windows
provides a reasonable level of privacy (e.g. window coverings in bedrooms, enclosed bathrooms, etc.)
has flushable toilets, adequate drainage, and hot and cold water suitable for drinking, and
has a functioning cooktop and laundry fittings, if these facilities are provided.
This builds on previous changes that prohibited “no cause” evictions, introduced new reasons to end tenancies, and formalised notice periods. Previous amendments also introduced a framework for negotiating tenant requests to keep a pet and an additional pathway for repair requests.
South Australia
After conducting a comprehensive public consultation process late last year, the South Australian Government announced a first round of reforms in February. This included:
Increasing the threshold for a maximum bond equivalent to 4 weeks of rent from $250 per week to $800 per week. This change came into effect on 1 April.
Banning rent bidding, whether done by a landlord or a third party acting on their behalf (e.g. a property manager). The effective date for this change is still to be confirmed.
Prohibiting landlords from seeking certain types of information about applicants. The exact details that will be protected and effective date for this change are still to be confirmed.
Setting maximum periods successful (3 years) and unsuccessful (30 days or 6 months with approval) applicant data can be retained. The effective date for this change is still to be confirmed.
Additional reforms were announced in June, which included prohibiting landlords from unreasonably refusing a tenant’s request to keep a pet. Landlords will also need to provide an approved reason for ending a tenancy and a minimum of 60 days’ notice (up from 28) when not renewing a fixed-term tenancy. The legislation to formalise these changes is still being drafted and will be submitted for further consultation before being finalised.
Tasmania
Tasmanian rental legislation has remained largely unchanged for almost a decade, when minor amendments were made to minimum standards. Restrictions were also placed on the publication of photos and videos of tenanted properties that would identify the tenant or other individuals.
Since then, short-stay accommodation has become a significant challenge, with many landlords choosing to list properties on sites like Airbnb. This has severely impacted the supply of longer-term rentals, particularly in the larger population centres (Hobart, Launceston, etc.). Until now, this issue has mostly been managed at the local level, with several Councils introducing restrictions on short-stay leasing.
Victoria
Over the last few years, modernising the state’s rental laws has been a significant focus for the Victorian Government. As part of this, a wide range of changes came into effect on 29 March 2021, including:
Introducing fixed prices on rental listings and banning rent bidding.
Reinforcing bans on deceptive conduct and requiring any sale plans or the presence of asbestos to be disclosed before signing a rental agreement.
Banning inappropriate questions on rental forms and limiting how applicant data can be used.
For properties with a weekly rent of less than $900:
Capping the maximum bond amount at one month’s rent, and
Limiting the requirement for payment of rent in advance to a maximum of one month.
Requiring all tenants to be provided with at least one fee-free rent payment method.
Requiring each renter to be provided with a free set of keys or security devices.
Relaxing restrictions on pets – landlords now cannot unreasonably refuse a tenant’s request to keep a pet.
Introducing a new process for handling tenants who repeatedly pay rent up to 14 days late.
Tightening right of entry rules for landlords and property managers, including restrictions on length and frequency of access.
Removing the allowance for “no specified reason” notices to vacate and limiting “end of fixed term” notices to vacate.
Introducing new reasons for issuing a notice to vacate, including “endangering safety”, and “threats and intimidation”.
Requiring evidence when issuing a “change of use” notice to vacate.
Requiring mortgage providers to honour any existing rental agreements when taking possession of a property.
Requiring rental providers to ensure their properties meet minimum standards in relation to:
Structural soundness, electrical safety, and ventilation.
Management of mould, dampness, and vermin.
Kitchen, bathroom, toilet, and laundry facilities.
Door locks, windows, and window coverings.
Lighting and heating.
Expanding the definition of urgent repairs, increasing the limit for reimbursement, and requiring the renter to be paid back within 7 days.
Strengthening the process for requesting non-urgent repairs, including allowing escalation to VCAT if the response takes more than 14 days.
Giving renters access to a copy of their personal information on a rental database, once a year, for free.
This suite of changes also included many minor amendments to administrative processes, including guidance on VCAT orders. A detailed overview of all of the amendments made can be found on the Consumer Affairs Victoria website.
More recently, there has been significant conversation about additional targeted measures designed to increase rental affordability and availability in Victoria. Varying reports indicate everything from freezing rents and capping annual increases to levies on short-stay accommodation could be considered. However, specific interventions are unlikely to be announced until the Victorian Government’s Housing Statement is released later in the year.
Western Australia
After remaining unchanged for more than a decade, it looks like rental laws in Western Australia will soon be changing. In May, the state government announced a range of proposed changes, including:
Banning rent bidding and requiring fixed prices on rental listings.
Increasing the minimum period between rent increases from 6 months to 12 months.
Relaxing restrictions on keeping a pet – landlords only allowed to refuse requests on certain grounds.
Relaxing restrictions on making some minor modifications – landlords only allowed to refuse requests on certain grounds.
Streamlining bond release process by allowing tenants and landlords to apply separately to have funds dispersed.
Creating a new dispute resolution process, where Commissioner for Consumer Protection determines bond payments, pet and minor modification decisions, etc.
Legislation formalising these amendments is currently being drafted in consultation with key stakeholders. As such, the exact details and effective date of the proposed reforms are still to be confirmed.