Australia Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Australia's landlord and tenant laws are judged by the Global Property Guide to be Neutral between landlord and tenant. Both parties' rights are well-protected by each state's Residential Tenancy Act. Rents can be freely negotiated, but increases out of the normal standard are subject to review by the ACT Civil and Administrative Tribunal (ACAT), provided the tenant makes an application.

Rents: Can landlord and tenant freely agree rents in Australia?

The landlord and the tenant can freely agree on the level of rent payable in all Australian states.

Increases or decreases in rents may be reviewed by the ACT Civil and Administrative Tribunal (ACAT), in the case of both period and fixed contracts, in all states except Tasmania, where increases in rent may be assessed by a magistrate. To get the rent increase reviewed, a tenant must make an application. The tribunal will consider the range of market rents usually charged for comparable premises in similar locations; the proposed rent compared to the current rent; the state of repair of the premises; the term of the tenancy; the period since the last rent increase; and any other factors that the tribunal considers relevant.

Rent increases may require the service of notice to be effective. New South Wales, Tasmania, South Australia, Western Australia, and Victoria require 60 days' notice of any rent increase, regardless of the tenancy type. The Australian Capital Territory requires eight weeks' notice. Queensland requires a minimum of one month's notice for a fixed-term agreement, and at least two months' notice for periodic agreements. The Northern Territory requires 30 days' notice regardless of the type of tenancy agreement.

Deposits

Most landlords will ask you to pay a bond when renting a residential property. A bond acts as a security layer for the lessor to fulfill the tenant’s obligations under a rental agreement.

Lessors are not required by law to take a bond from a tenant; however, if they do receive a bond, they are required to register it with the Rental Bonds Office. Bonds can be any amount up to a maximum of four weeks' rent. Lessors and agents must give the tenant a receipt as proof of payment of the bond.

If you are the lessor, you will need to pay land tax for both a rented or vacant property that is not your principal place of residence. You may be liable for the foreign ownership surcharge if you are not an Australian citizen or resident.

What rights do landlords and tenants have in Australia, especially as to duration of contract, and eviction?

There are two types of tenancy in Australia:

• Fixed-term tenancies, for a specific period of time;
• Periodic tenancies, which go either from week to week or from month to month.

A landlord can terminate a tenancy by giving notice in the approved form or by using the tribunal. At the end of a fixed-term agreement, the landlord must give a written notice to the tenant.

• In New South Wales and Queensland, a minimum of 14 days' notice is required. In Victoria, 90 days' notice for a fixed-term agreement of less than 6 months.
• In South Australia and Western Australia, there is no required minimum notice, but the landlord and tenant must discuss the issue and come to an arrangement.
• In Tasmania, 28 days' notice.
• In the Australian Capital Territory, 3 weeks' notice.
• In the Northern Territory, 14 days' notice.

Where a fixed-term tenancy expires and the tenant does not vacate the premises, the tenancy is transformed into a periodic tenancy in all states, except in New South Wales, where there is automatic renewal on the same terms and conditions as before. In Western Australia, if the tenant does not leave the premises after the expiration of the agreement, the landlord must apply to a Magistrates Court for termination and possession order within 30 days of the conclusion of the contract.

The length of notice in cases where one side has breached the tenancy agreement, e.g. for arrears in rent, or where the owner's family requires possession to live in the premises, or where the owner wants to renovate or reconstruct the premises, or wants possession without any reason being specified, varies with each state and each 'cause,' from 7 days in Queensland, Western Australia, and South Australia to 182 days in Australian Capital Territory (see table).

How effective is the Australian legal system?

The tenancy tribunals and magistrates' court can order evictions. The legal system in Australia is highly efficient. It takes an average of 6 days to enforce court rulings.

Legislation

Landlord and tenant issues are governed by each state's Residential Tenancies Act (RTA).

• Australian Capital Territory: Residential Tenancies ACT 1997
• New South Wales: Residential Tenancies Act 1987
• Northern Territory: Residential Tenancies Act 1999
• Queensland: Residential Tenancies Act 1994
• South Australia: Residential Tenancies Act 1995
• Tasmania: Residential Tenancy Act 1997
• Victoria: Residential Tenancies Act 1997
• Western Australia: Residential Tenancies Act 1987

Bodies handling tenancy disputes are as follows:

• Canberra, Australian Capital Territory: Residential Tenancies Tribunal
• New South Wales: Consumer, Trader & Tenancy Tribunal
• Northern Territory: Consumer and Business Affairs - Northern Territory Department of Justice
• Queensland: The Residential Tenancies Authority administers the RTA, and a Small Claims Tribunal settles tenancy disputes.
• South Australia: Residential Tenancies Tribunal
• Tasmania: The Consumer Affairs and Fair Trading administers the RTA, and the Residential Tenancy Commissioner settles tenancy disputes.
• Victoria: Victorian Civil and Administrative Tribunal (VCAT)
• Western Australia: The Department of Consumer and Employment Protection administers the RTA, and the Magistrates Court settles tenancy disputes.

Recent changes in Australian landlord and tenant law

Each State and Territory has its own law regarding landlord and tenant relations. There are active changes going on in all the Territories every year - we suggest being updated on the Rental Laws in ACT.

In 2002, Victoria amended its Residential Tenancies Act 1997 to require 60 days' notice for a proposed rent increase, the rent not to be increased at intervals of less than 6 months; a right of entry for the landlord after the end of the first three months of tenancy; and payment of bonds before occupancy.

Useful guides:

See here for regular updates: Rental Laws in Australia.