Due Diligence

Rental Reforms Every State 2026: Rent Caps, No Grounds Evictions, Pets, and Standards

Every Australian state and territory has changed its residential tenancy laws significantly in 2024-2026. Rent increase frequency caps, no-grounds eviction bans, mandatory minimum standards, and pet acceptance rules now vary state by state. Property investors operating across multiple jurisdictions face a fragmented compliance landscape.

This guide is the complete 2026 rental reform reference: what has changed, by state, with the practical implications for landlords and investors.

At a Glance: Every State Compared

| State | Rent Increase Frequency | No Grounds Evictions | Pets | Min Standards | |---|---|---|---|---| | NSW | Once per 12 months | Banned (from 19 May 2025) | Must approve unless reasonable grounds | From 2024 | | VIC | Once per 12 months | Banned (2021) | Must approve unless VCAT order | Comprehensive | | QLD | Once per 12 months | Banned (2024) | Must approve | Limited | | WA | Once per 12 months | Under review | Must approve unless tribunal order | Limited | | SA | Once per 12 months | Banned (2024) | Must approve | Limited | | TAS | Once per 12 months | Partially restricted | Must approve | Limited | | ACT | Once per 12 months, capped at CPI+10% | Restricted | Must approve | Comprehensive | | NT | Once per 6 months | Permitted | Landlord discretion | Limited |

The trend is clear: significant tightening of landlord flexibility, biasing the system toward tenant stability and safety.

NSW: Major 2024 and 2025 Reforms

NSW passed the Residential Tenancies Amendment Act 2024, with its most significant change (the ending of no-grounds evictions) commencing on 19 May 2025. Key changes:

No grounds evictions abolished. From 19 May 2025, landlords can no longer terminate periodic or fixed-term tenancies without a prescribed reason. Valid reasons include sale of the property, significant renovation or demolition, landlord or family member moving in, change in use of the property, and breach of lease by the tenant. Evidence requirements apply.

Rent increase frequency. From October 2024, capped at once every 12 months for all tenancies (previously 12 months on fixed term but every 6 months on periodic). Background check fees for applicants are also banned.

Pet approvals. Landlords must approve pet requests unless they have reasonable grounds for refusal. "I don't want pets" is not a reasonable ground.

Minimum standards. Heating, ventilation, lighting, hot water, stove, and structural standards apply to all new tenancies and existing tenancies as of specified dates.

Portable bond scheme. Piloted in 2025. Tenants can transfer bonds between properties without paying a new bond before recovering the old one.

For NSW property investors, the compliance cost of the new framework is material. Lease renewals and inspections must be documented and handled more carefully.

Victoria: Strictest in Australia

Victoria has the most comprehensive tenant protections in Australia, following reforms that began in 2018 and have been progressively tightened.

No grounds evictions banned since 2021. Specific valid notice-to-vacate reasons only.

Rent increase frequency. Once every 12 months.

Rent bidding banned. Advertised rent cannot be exceeded through bidding.

Comprehensive minimum standards. 13 separate minimum standards including heating, lighting, water efficiency, energy ratings, and structural safety.

Pet approvals. Must be approved unless VCAT grants specific order.

Bond refund reforms. 14-day default refund unless dispute lodged.

Safe property standards. Annual gas, electrical, and smoke alarm inspections mandated for investment properties.

Combined with Victoria's vacancy tax, 7.5% short-stay levy, and increased land tax rates, the state has the highest regulatory burden for property investors in Australia.

Queensland: Stage 2 Reforms in 2024

Queensland completed the Stage 2 Rental Law Reform package in mid-2024.

No grounds evictions abolished for periodic tenancies. Valid reasons required.

Rent increase frequency. Capped at once every 12 months.

Minimum housing standards. Phased in from 2023, covering weatherproofing, plumbing, security, lighting, ventilation.

Pet approvals. Landlords must approve unless specific reasons.

Bond amounts. Capped at 4 weeks' rent.

Rent bidding. Prohibited as of 2024.

WA: Reform Under Review

WA introduced phased rental reforms from 2024 onwards.

Rent increase frequency. Once every 12 months (was 6 months).

Pet approvals. Default "yes" with landlord able to apply to tribunal for exception.

Minimum standards. Under review, limited framework currently in force.

No grounds eviction. Currently still permitted on periodic tenancies with proper notice, but under active review.

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SA: 2024 Reforms

South Australia completed rental law reforms in 2024.

No grounds evictions. Banned. Lawful reasons only.

Rent increase frequency. Once every 12 months.

Pet approvals. Default "yes" with limited grounds for refusal.

Rent bidding. Prohibited.

Minimum standards. Limited framework with gradual expansion planned.

TAS: Balanced Approach

Tasmania has moved more cautiously on rental reform.

No grounds eviction. Partially restricted. Valid reasons required in many circumstances.

Rent increase frequency. Once every 12 months.

Pet approvals. Must approve unless reasonable grounds.

Minimum standards. Limited but growing framework.

ACT: Rent Caps Added

The ACT implemented rent caps alongside other reforms.

Rent increase cap. Limited to CPI + 10% increase in any 12-month period, the most restrictive in Australia.

No grounds evictions. Restricted to specific lawful reasons.

Pet approvals. Default "yes" unless tribunal orders otherwise.

Minimum standards. Comprehensive, similar to Victoria.

NT: Landlord-Friendly Outlier

The Northern Territory remains the most landlord-friendly jurisdiction.

Rent increase frequency. Once every 6 months (one of only two jurisdictions still allowing this, ACT is the other but capped).

No grounds evictions. Permitted on periodic tenancies.

Pet approvals. Largely at landlord discretion.

Minimum standards. Limited framework.

For landlords prioritising operational flexibility, NT is the most permissive state. See our Darwin suburbs guide.

Practical Impact on Rental Returns

Tenant-friendly reforms have second-order effects on yields and returns:

Lower turnover. No-grounds bans and stability measures mean tenants stay longer, reducing letting fees and vacancy periods. Net positive for yield.

Higher compliance cost. Minimum standards impose upgrade costs. A NSW property requiring heating, ventilation, and energy upgrades may require $5,000 to $20,000 of capital works.

Pet-related maintenance. Mandatory pet approvals increase wear-and-tear claims and carpet replacement frequency. Appropriate pet bond provisions partially offset.

Eviction delays. No-grounds bans mean landlords cannot quickly remove problem tenants or take back property for use. Tribunal processes for lawful termination can take 3 to 6 months.

Rent growth constraints. Rent caps (ACT) and the broad "reasonable rent" jurisprudence can limit increases during tight markets.

What Landlords and Investors Should Do

1. Build Compliance Buffers Into Cashflow

Factor 1% to 1.5% of property value per year in compliance, minor upgrades, and tenant retention spend. This is higher than the historical 0.5% to 1% maintenance benchmark.

2. Invest in Quality Property Management

DIY landlording is increasingly risky as state-by-state rules diverge. Quality property managers specialise in each state's specific requirements.

3. Document Everything

Condition reports, rent increase notices, maintenance correspondence, and eviction processes now require careful documentation. Tribunal defaults for incomplete records generally favour tenants.

4. Target Landlord-Friendly States for New Acquisitions

If operational flexibility matters more than capital growth, NT, WA, and TAS offer more room. If growth and liquidity matter more, NSW, VIC, QLD still dominate.

5. Review Leases Annually

State law changes are continuous. Older leases may contain unenforceable clauses. Review lease templates annually with a qualified lawyer.

Bottom Line

The trend across Australian rental reform is unmistakable: tenant stability, safety, and rent regulation are tightening, while landlord flexibility is shrinking. NSW, Victoria, QLD, and SA are now broadly aligned on no-grounds eviction bans, rent increase frequency caps, and minimum standards. The NT is the outlier remaining landlord-friendly.

For investors, the right response is not to abandon the market but to adapt: better property management, realistic compliance budgeting, and state-aware acquisition strategy. Use PropBuyAI to analyse state-specific investment opportunities. Explore pricing.

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