New Rental Laws (NSW)

In 2024, the NSW government passed the Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024 to strengthen protections for residential tenants in the state. This page outlines the changes to rental laws in New South Wales, which come into effect in full on 19 May 2025.

Termination of fixed-term leases

Under the new laws, a landlord may terminate a fixed-term lease only for one or more of the following reasons:

• The landlord intends to live in the property for at least 12 months
• The landlord intends to carry out renovations or repairs that will render the property uninhabitable for at least for at least four weeks and has obtained all the necessary permits and consents to do so
• The premises will be used or kept in a state mean they cannot be used as a residence for a period of at least six months
• Another ground prescribed by the regulations.

A tenant who is evicted for any of the above reasons must be given a termination notice at least 90 days before the final date of the fixed term lease.

Termination of periodic leases

Under the new laws, a periodic tenancy can now only be terminated for one or more of the following reasons:

• The landlord intends to live in the property for at least 12 months
• The landlord intends to carry out renovations or repairs that will render the property uninhabitable for at least for at least four weeks and has obtained all the necessary permits and consents to do so
• The premises will be used or kept in a state mean they cannot be used as a residence for a period of at least six months
• another ground prescribed by the regulations.

What if the landlord does not use the premises as they have claimed they will?

Under the new laws, there are offences that a landlord can be charged with if they nominate a reason for termination but then do not use the property in the way they have claimed they will.

Offence

A landlord who terminates a lease will be guilty of an offence if they do not proceed to use the premises in accordance with the ground that was given for the termination.

This offence will be punishable by a maximum penalty of 100 penalty units.

Tenant remedies

If a landlord does not use premises in accordance with the ground on which a tenancy was terminated, the tribunal may make an order directing a landlord to use the premises in accordance with that ground.

Alternatively, the Tribunal can make an order deeming the premises to be subject to the residential tenancy for a period and on conditions specified by the tribunal so that the tenant can continue to use the premises.

Reasons for the changes to rental laws

The changes are intended to improve the residential tenancy system and make renting in New South Wales fairer. The Labor government has touted the changes are one of the biggest rental reforms in a decade and a necessary response to the housing crisis which has led to historically low vacancy rates. The government says that residential tenants currently live with an unacceptable level of uncertainty and financial pressure. The changes aim to ensure that tenants who comply with their obligations under a residential lease do not have to live with the constant possibility of eviction.

“The commitment to ending no grounds evictions is a major step in a broader effort to create a fair, quality, and affordable rental market where both tenants and landlords are treated with respect and fairness.

“It’s about striking a balance that upholds the rights and responsibilities of all involved,” said Rental Commissioner Trina Jones.

The changes come into effect on 19 May 2025.

If you require legal advice or representation in any legal matter, please contact Go To Court Lawyers.