Changes to Residential Tenancy Laws (ACT)

During 2024 and 2025, a number of significant changes to the ACT's residential tenancy laws came into effect. The changes aimed to make the rental system fairer for renters and provide greater protection for vulnerable tenants. They included limiting the frequency of rent increases, allowing tenants to terminate leases in situations of domestic violence, and introducing new disclosure requirements for landlords. This comprehensive page outlines how ACT residential tenancy law has changed and what these reforms mean for both tenants and landlords in the Australian Capital Territory.

Legislation

The changes have been made to the Residential Tenancies Act 1997. These amendments represent the most substantial reform to ACT tenancy laws in recent years, reflecting the government's commitment to addressing housing affordability and tenant rights issues. The legislative changes were developed following extensive consultation with tenant advocacy groups, property industry representatives, and community stakeholders to ensure a balanced approach to rental market regulation.

Rent increases

Frequency limitations

One of the most significant changes is that there are now strict laws on how often and under what circumstances the rate of rent to be paid for a property may be increased. Under section 64AAA of the Residential Tenancies Act, rent may now only be increased after a lease has been on foot for 12 months. Rent may only be increased again once at least 12 months have passed since the last increase.

Notice requirements and procedures

The new provisions also establish clear procedures for rent increase notifications. Landlords must provide proper written notice using prescribed forms and follow specific timeframes when implementing rent increases. These changes prevent excessive or frequent rent rises that were previously causing financial hardship for many ACT tenants. The legislation ensures that tenants have adequate time to budget for increased rental costs and make informed decisions about their housing arrangements.

Domestic violence

Lease termination rights

Tenants who are victims of domestic violence can end their lease at any time without paying a lease break fee. This can be done by providing the landlord with a family violence termination notice and one document as evidence that the person is experiencing family violence – for example, a court order or a statutory declaration.

Privacy and safety protections

The domestic violence provisions also include important privacy protections for victims. Landlords are prohibited from disclosing information about family violence terminations to third parties, and the legislation provides additional safeguards to ensure victims can safely exit rental arrangements without fear of discrimination in future housing applications. These reforms recognize that secure housing is fundamental to escaping domestic violence situations.

Break lease fee clauses

Mandatory fee disclosure

All fixed-term tenancy agreements must now include a clause setting out the break-lease fee. Under section 89A, if a tenant ends a lease before the end of a fixed term, the lessor may require them to pay a lease break fee.

Fee structure and limitations

If the lease is for three years or less, the fee may be:

• six weeks rent if less than half of the fixed term has passed; or
• four weeks in any other case.

If the lease is for more than three years, the fee will be the amount agreed between the parties. If the lessor finds a new tenant, the amount of the lease break fee payable by the old tenant will be reduced by the amount of rent that has been recovered. This ensures tenants are not financially penalized when landlords successfully re-let properties quickly.

Unit title rental certificates

Certificate contents

When a person rents a unit or townhouse, they must be given a unit title rental certificate containing the following information:

• the owners' corporation rules
• safety information if there is a pool in the common area
• whether there is an embedded electricity network
• whether occupants are able to choose their service providers for utilities
• whether the property has ceiling insulation.

Timeframes and compliance

An owners' corporation must provide a unit title rental certificate within 14 days of an owner making a request. This requirement ensures tenants receive essential information about their rental property and common area facilities before signing lease agreements.

Embedded networks and property disclosures

Embedded network requirements

When a person advertises a property for rent, or leases a property, and the property is part of an embedded network, the lessor must now disclose that the property is part of an embedded network and what services this includes. An embedded network is an electricity network that is separate from the main grid and operated by a private entity.

General property disclosures

When a person leases out a property, they must disclose:

• safety information about any pools on the property; and
• a unit title rental certificate if the property is a unit or townhouse.

These disclosure requirements promote transparency in the rental market and help tenants make informed decisions about utility costs and property features.

Standard terms

The standard terms that must be included in all residential rental agreements have changed to reflect these changes to the Act. These updated standard terms ensure consistency across all ACT rental agreements and provide clear guidance to both landlords and tenants about their rights and obligations under the reformed legislation.

Enforcement and compliance

Penalties for non-compliance

The reformed legislation includes strengthened enforcement mechanisms and penalties for landlords who fail to comply with the new requirements. The ACT Civil and Administrative Tribunal (ACAT) has expanded powers to address breaches of tenancy law and can impose significant financial penalties for non-compliance with disclosure requirements and rent increase restrictions.

Tenant remedies

Tenants now have enhanced remedies available when landlords breach their obligations under the updated Residential Tenancies Act. These include compensation orders, rent reduction orders, and in serious cases, lease termination rights. The reforms strengthen tenant protections while maintaining appropriate rights for property owners.

Transition arrangements

Existing leases

The new laws apply to both new and existing residential tenancy agreements, with specific transition provisions ensuring fair implementation. Existing tenants benefit from the rent increase limitations and domestic violence protections immediately, while some disclosure requirements apply when leases are renewed or extended.

Implementation timeline

Different provisions of the reformed legislation came into effect at various times throughout 2024 and 2025, allowing the rental market to adapt gradually to the new requirements. Property managers and landlords were