What NSW rental law changes started in 2024–2026?
NSW tenancy law went through its biggest overhaul in more than a decade between late 2024 and 2026 — and if you rent in NSW, most of these changes already apply to you.
The changes came in waves. The NSW Parliament passed the Residential Tenancies Amendment Act 2024, but the new rules did not all start at once. Some kicked in at the end of 2024, others in mid-2025, and one in early 2026. This article explains every major change for renters, when it started, and what it means for you.
A quick timeline
Here is the order the reforms started:
- 31 October 2024 — Once-per-year rent cap
- 19 May 2025 — No-grounds eviction ban
- 19 May 2025 — New pet rules
- 31 October 2024 — Background check fee ban
- 19 May 2025 — Fee-free rent payment options (bank transfer)
- 1 July 2025 — Landlords must report eviction grounds when claiming bond
- 2 March 2026 — Centrepay-specific obligation commenced (via Gazette notice)
Once-per-year rent cap (31 October 2024)
Before this change, landlords on periodic (month-to-month) leases could raise rent as often as they liked. The law changed that.
From 31 October 2024, landlords can only increase rent once every 12 months (s41(1A) of the Residential Tenancies Act 2010). They also cannot increase rent during the first 12 months of a tenancy. And they must give you at least 60 days’ written notice before any increase takes effect.
There is a narrow transitional exception under Schedule 2 clause 34: fixed-term agreements of less than 2 years signed before 13 December 2024 remain under the old rules until those agreements expire. Once they expire, the 12-month cap applies to any new or replacement agreement.
For a full breakdown of notice rules and when you can challenge an increase, see How much notice must my landlord give for a rent increase in NSW?
No-grounds eviction ban (19 May 2025)
This is the biggest change for renters’ security.
Before 19 May 2025, a landlord could end your tenancy without giving any reason — a so-called “no grounds” termination. That is now unlawful. From 19 May 2025, a landlord must have a specific lawful reason to end a tenancy (from the closed list in s87C–s87M of the RTA), and for many grounds they must also provide supporting documents or information specified in the Regulation.
The permitted reasons include things like: the landlord or a family member is moving in, the property is being sold or is going up for sale, significant renovations are needed, the property is being demolished, the premises will change to a non-residential use, or a tenant has breached the agreement.
The landlord must give you a written notice stating the specific reason. From 1 July 2025, landlords must also register the reason with NSW Fair Trading when claiming the bond — creating a paper trail to deter false claims (under s222A of the Act and clause 23L of the Regulation).
To discourage misuse of these grounds, s87 of the Act creates an offence of re-letting within a “tenancy exclusion period” specific to the ground used. For a termination on the ground of proposed sale (s87E) or that the landlord or a family member will reside at the premises (s87M), the landlord cannot enter into a new residential tenancy agreement for 6 months after the termination date without the Secretary’s approval. Longer periods apply to demolition (6 months, s87G) and change of use (12 months, s87L); the significant-renovations ground (s87F) carries a shorter 4-week exclusion. Penalties reach 100 penalty units for an individual landlord and 650 penalty units for a corporation.
Compared with the demolition ground (which requires a copy of the demolition contract and any required development consent) and the change-of-use ground (which requires an ABN, development consent, licence number, or STRA listing), the significant-renovations ground is documented very lightly — the landlord need only provide their own signed statement. Tenant advocates have argued this asymmetry creates a “renoviction” risk, because a signed statement is easy to produce and the offence for a non-genuine ground under s86 only bites after the fact.
For the full list of permitted grounds and what to do if you think an eviction is unlawful, see Can my landlord evict me without a reason in NSW?
New pet rules (19 May 2025)
Pets were previously a grey area in NSW rental law. Landlords could refuse consent without giving any reason. That changed from 19 May 2025.
Now, if you ask for permission to keep a pet, your landlord must respond in writing within 21 days (s73D(1)(b)). If they do not respond within that time, your request is automatically taken to be approved without conditions (s73D(4)). Both the application and the response must use the approved form available from NSW Fair Trading.
Landlords can only refuse a pet request on specific grounds set out in s73F(1). Permitted reasons include: the landlord lives at the property, the premises are genuinely unsuitable (for example, poor fencing for a dog), the number of animals would be excessive, it is highly likely the pet would cause damage beyond the bond, keeping the pet would breach legislation or strata by-laws, or the tenant has refused to accept reasonable conditions.
Landlords cannot impose conditions like a rent increase or a separate “pet bond” (s73E(3)).
Background check fee ban (31 October 2024)
Before this change, many rental platforms and agencies charged prospective tenants fees to run background or reference checks as part of rental applications. This practice is now banned.
From 31 October 2024, under s23(2)(b) of the Act, no person can require or receive a fee from a tenant for the conduct of a background check when they apply for a rental property. This provision was in the first tranche of the Residential Tenancies Amendment Act 2024, alongside other pre-agreement fee protections. The prohibition uses “a person must not require or receive” — a broad formulation that captures third-party providers, not just landlords or agents directly.
Fee-free rent payment and Centrepay (19 May 2025 and 2 March 2026)
This reform happened in two stages.
From 19 May 2025, section 35 of the Act requires landlords to offer both of the prescribed fee-free payment methods: an approved electronic bank transfer method (which must be free of charge to the tenant under s35(9)), and Centrepay — the Australian Government’s free bill-payment service for Centrelink recipients.
The Centrepay obligation had a delayed start. Under clause 60 of the Regulation, the s35 Centrepay-specific requirement did not apply until a Minister published a Gazette notice specifying the commencement date. That Gazette notice was issued, and the dedicated Centrepay provision commenced on 2 March 2026. From that date, all landlords must offer Centrepay as a rent payment option and cannot charge any fee for using it.
If you receive Centrelink payments, you have the right to pay your rent through Centrepay. If your landlord or agent refuses or charges a fee, they are breaking the law.
Eviction reporting from 1 July 2025
From 1 July 2025, landlords must report the reason a tenancy ended to NSW Fair Trading when they make a bond claim (or within 14 days of a tenant-initiated bond claim). They must also record what type of supporting documents they used.
This creates a data trail under s222A of the Act, operationalised by clause 23L of the Regulation. It allows the government to check whether landlords are using genuine permitted grounds or making up reasons. Failing to report attracts a maximum penalty of 10 penalty units. Separately, giving a termination notice on a ground that is not genuine is an offence under s86 (max 100 penalty units for individuals; 650 for corporations).
How to check which reforms apply to your tenancy
Most of these reforms apply to all NSW residential tenancies, regardless of when your lease was signed. But a few details depend on your specific situation.
For the rent cap: If you signed a fixed-term agreement of less than 2 years before 13 December 2024, the cap may not apply to that agreement until it expires. Once it does, the standard rules kick in for any new or replacement agreement.
For the no-grounds eviction ban: This applies to all NSW tenancies from 19 May 2025. Your landlord cannot use a “no grounds” termination notice regardless of whether you are in a fixed-term or periodic tenancy.
For fee-free payment: Check that your landlord is offering the two prescribed methods (bank transfer and, from 2 March 2026, Centrepay) without charging you a fee. If your only option is a payment platform that charges a transaction fee, that may be a breach.
To check your specific situation, look at: when your current lease was signed, whether it is still in its fixed term or has rolled to periodic, and when any notices you have received were issued.
For bond-related questions, see How do I get my rental bond back in NSW? and What can a landlord deduct from my bond in NSW?
What is next
The 2024–2026 reforms represent the floor, not the ceiling. The NSW Government has signalled that the rental sector remains under review. Key areas being watched include minimum standards for rental properties, energy efficiency requirements, and the effectiveness of the no-grounds eviction ban over time.
The data-trail reporting requirement — landlords registering eviction grounds with Fair Trading from July 2025 — is specifically designed to generate evidence about how the no-grounds ban is working in practice. That data is likely to inform further policy decisions.
The overall direction of NSW tenancy law is clear: it is moving toward stronger protections for renters, with landlords required to justify more of their decisions and provide more payment flexibility. If you are a renter in NSW, these changes give you more rights than you had two years ago — but only if you know about them.
Not sure how these reforms apply to your specific tenancy?
Ask RentWiz — our free AI tool answers your specific NSW tenancy question using the actual Act and Regulation. Try it now →