The ACT government is seeking comments on what minimum standards for rental properties in upcoming tenancy law reforms. The ACT Assembly inserted powers for the territory government to make minimum standards into the Residential Tenancies Act by amendments made in 2020 and 2023, however the power is yet to be exercised substantially.

Minimum rental standards were one of nine reforms prioritised in the A Better Deal for Renters statement given by national leaders after the August 2023 National Cabinet meeting on the housing crisis.

If a landlord were to breach a minimum standard, a tenant or occupant would be able to apply to the ACT Civil and Administrative Tribunal (ACAT) for a rent reduction or an order for remediation requiring the landlord to bring the property up to standard. The breach of minimum standard does not equate to a breach of the rental contract. 

The government acknowledged that the current rental contract terms requiring that properties be “fit for habitation”, are difficult to enforce as they are “so general”. They explained that landlords and tenants often “do not agree on the standard to which a rental property should be provided or maintained”.

So far, the government has only made minimum standards regulations that require properties to have sufficient insulation to meet energy efficiency standards.

Other jurisdictions, such as the states of Victoria and Queensland, have extensive lists of minimum standards including requiring adequate prevention of damp and mould, a kitchen with functioning appliances and sinks, at least one functioning toilet, and that the property meets electrical safety standards.

Occupancy agreements also under review

The minimum standards would apply to traditional private rentals, called residential tenancy agreements, but the government is also seeking comment on whether they should also apply to occupancy agreements, which are used in ANU residential halls.

Another reform the government is considering for occupancy agreements are laws allowing occupants to end fixed-term occupancies early in cases of “significant hardship”. These rules already apply to residential tenancies.

Such a provision could have changed the outcome of a decision by the ACAT delivered earlier this year that an ANU student’s residential hall occupancy agreement was not frustrated, thereby the contract was not terminated, when they were locked out of Canberra by COVID border restrictions and unable to reside on campus.

Submissions to the consultation can be made on the government’s YourSay website until 2 September. The government is also running surveys and allowing “quick comments” for people who want to participate but do not want to submit a formal submission.

Rental caps also reformed

The government also announced in June new legislation to extend the territory’s rent increase caps to the renewal of fixed term tenancies. That legislation passed the Assembly and commenced in July.

The reform would also prevent landlords from increasing rents over the cap when there is a change in the agreement – such as one co-tenant moving out.