In July 2024, New South Wales Premier Chris Minns announced that a ban on “no-grounds” evictions would be introduced to Parliament in the following month. Under the proposed changes, landlords would have to meet “common-sense and reasonable” grounds for eviction, including the sale of the property and instances of misconduct by tenants.
What are no-grounds evictions?
“No-grounds evictions”, also known as “no-fault evictions”, allow landlords to terminate tenancies in private rental properties without granting a specified reason for doing so, providing that notice periods are followed.
Some jurisdictions restrict termination without grounds to the end of fixed-term agreements (tenancy agreements with a defined ‘end’ date), while Victoria has narrowed this allowance to the end of tenants’ first fixed term in a property. New South Wales, Western Australia and the Northern Territory currently allow landlords to evict tenants without specified grounds during periodic agreements (tenancies which do not have a defined end date, also known as ‘month-to-month’ agreements). These three jurisdictions also allow no-grounds evictions at the end of fixed-term agreements.
The proposed New South Wales changes would bring the state in line with South Australia and the Australian Capital Territory, the two jurisdictions which have removed all allowances for no-grounds evictions. The NSW reforms could also include the imposition of fines on landlords who provide “non-genuine” reasons for terminating, a welcome development towards addressing what has been described as a “profound” power imbalance between landlords and tenants in Australia.
No-grounds Evictions in Australia: States and Territories
Allowing for no-grounds evictions drastically reduces housing security for private renters. Tenants living in jurisdictions which allow no-grounds evictions face little certainty that they will be able to remain in their homes, neighbourhoods, or towns for as long as they want and need. Being forced to move home as a result of an unexpected notice to vacate is also very costly, with expenses associated with moving reaching several thousands of dollars. Forced moves can also disrupt social networks and access to education, impact emotional wellbeing and feelings of safety and security, and can heighten the risk of homelessness.
The ability to evict a tenant without providing a justification exacerbates an imbalance of power between renters and landlords. The Tenant’s Union of New South Wales has described the existence of no-grounds evictions as a “constant worry” for private renters, with renters expressing fears of retaliatory eviction in response to asking for repairs or maintenance of their homes.
All of Australia’s states and territories should follow the lead of South Australia and the ACT, and now likely New South Wales, in removing allowances for no-grounds evictions.
In the Centre for Equitable Housing’s 2023 report “Regulating Rentals in Australia; what works?” we also called for the removal of some states’ allowances for no-grounds evictions within fixed-term leases. Restricting no-grounds evictions to the end of fixed terms (as has been done in Queensland and Tasmania), or to the end of a tenant’s first fixed term (as is seen in Victoria) narrows opportunities for eviction. However, it should be noted that the vast majority of Australian fixed-term agreements are a year or less in duration. This leaves many of Australia’s private renters at risk of eviction each year, providing little assurance of long-term security.
All people have a right to shelter, regardless of whether they rent or own their homes. All states and territories should reform their tenancy legislation to ensure private renters do not live in fear of eviction and its financial, social and emotional costs.
Written by Lucy Tonkin, Andrew Herington Fellow
Centre for Equitable Housing
