Stronger protections for tenants are taking effect, with the phasing in from March 1 of the biggest update of rental laws since their introduction nearly 30 years ago.

As of March 1, rent increases are limited to once a year and penalties for breaches of rental laws significantly increased.

The reforms are in response to the first major review of rental laws in a generation.

Under the reforms, landlords could face penalties of up to $50,000 for breaches of the Act.

Key changes to the law from March 1 include:   

• Landlords can only increase rent once a year – previously there was a provision that allowed for rent to be increased more than once a year with consent of the tenant – which has now been removed.
• Increased penalties for breaches including a landlord falsely stating they require possession of a rental premises in order to terminate a tenancy (from a maximum of $2,500 to $50,000).
• Tougher penalties for breaches including discriminating against a potential tenant because a child will live in the property or seeking an upfront payment of more than two weeks’ rent before the end of the first two weeks of the tenancy (increasing from a maximum of $2,500 to $25,000).
• Increased fines for tenants who intentionally cause serious damage to a rental property (from $2,500 to $25,000).
• Increased penalties for breaches including failing to offer at least one free method of rent payment or seeking more than one bond payment from the same tenancy agreement (from $5,000 to $35,000).

Further changes will come into effect later this year including:

• not allowing the termination of a lease without prescribed reasons
• extending the notice period to end a tenancy from 28 days to 60 days
• allowing tenants to have pets in rental homes with reasonable conditions
• reforms to protect prospective tenants’ information
• ensuring rental properties comply with minimum housing standards
• additional support for victims of domestic violence.

This suite of reforms follows the Government’s earlier moves to address rental affordability including banning rent bidding and raising the bond threshold, which has already saved tenants millions of dollars since being introduced in April 2023.