The RTA Amendment Bill 2024 has made its way to parliament and successfully cleared its First Reading.
This bill aims to roll back several significant changes implemented by the previous government to the Residential Tenancies Act (RTA) and introduce the long-discussed Pet Bond.
The National-led government asserts that this bill, currently open for feedback at Select Committee, will eliminate obstacles to rental supply and provide incentives for property owners to engage in the private rental market.
Housing Minister Chris Bishop remarked, “The Government’s sensible pro-tenant changes to the Residential Tenancies Act, alongside the introduction of interest deductibility, will help increase the supply of rental properties by giving landlords the confidence to enter or re-enter the private rental market, and it will give people a better chance to secure a rental.”
The bill plans to reintroduce 90-day ‘no cause’ terminations for periodic tenancies without necessitating a specific ground for ending the tenancy and amend Section 60A to allow a fixed term to end without reason provided by the landlord.
42 Day Notices will be reinstated for the owner or their family member reclaiming the rental property as their primary residence and also when a property is marketed or unconditionally sold.
The Pet Bond, a highly anticipated feature of the bill, introduces new sections to the RTA. Landlords may require a ‘pet bond’ up to a maximum value of two weeks’ rent (in addition to the regular rental bond).
To keep a pet in a rental property, tenants must obtain written consent from their landlord, who may refuse only on reasonable grounds.
The bill outlines a non-exhaustive list of reasonable grounds for refusing a tenant’s request to keep a pet in a rental property, including unsuitability of premises for the pet, breach of bylaws, unsuitability of the pet for the property, and failure to agree to reasonable conditions proposed by the landlord.
Tenants will be held fully liable for careless and accidental pet-related damage beyond fair wear and tear.
The bill also introduces pet consent and bond-related infringement offenses, unlawful acts, and associated penalties to ensure compliance with the new regulations.
Most of these changes are expected to become law by early next year, with the Pet Bond amendment anticipated to take effect in late 2025.