Victorian Bills Victorian Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
Residential Tenancies Amendment (Long-term
Tenancy Agreements) Act 2018
No. of 2018
TABLE OF PROVISIONS
Clause Page
Part 1--Preliminary 1
1 Purpose 1
2 Commencement 2
3 Principal Act 2
Part 2--Amendments relating to tenancy agreements 3
4 Definitions 3
5 Section 6 repealed 3
6 Tenancy agreements to be in standard form 3
7 New section 26A inserted 5
8 Section 27 substituted and new section 27A inserted 5
9 Not more than 1 bond is payable in respect of continuous
occupation 7
10 New sections 34A and 34B inserted 7
11 Power to enter tenancy agreements or other agreements 10
12 Regulations 10
Part 3--Amendments relating to compensation and compliance 11
13 New section 209AA inserted 11
14 Orders of Tribunal 11
Part 4--Amendments relating to termination 12
15 Creation of periodic tenancy 12
16 New section 237A inserted 13
17 End of fixed term tenancy 13
18 Notice to vacate for no specified reason 14
Part 5--Repeal of amending Act 15
19 Repeal of amending Act 15
═════════════
Endnotes 16
1 General information 16
i
Residential Tenancies Amendment
(Long-term Tenancy Agreements)
Act 2018
No. of 2018
[Assented to ]
The Parliament of Victoria enacts:
Part 1--Preliminary
1 Purpose
The purpose of this Act is to amend the
Residential Tenancies Act 1997 to provide for
tenancy agreements for a fixed term of more than
5 years and to make consequential amendments.
1
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 1--Preliminary
2 Commencement
(1) Subject to subsection (2), this Act comes into
operation on a day or days to be proclaimed.
(2) If a provision of this Act does not come into
operation before 1 February 2019, it comes into
operation on that day.
3 Principal Act
In this Act, the Residential Tenancies Act 1997
is called the Principal Act.
2
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
Part 2--Amendments relating to
tenancy agreements
4 Definitions
(1) In section 3(1) of the Principal Act insert the
following definition--
"standard form tenancy agreement means--
(a) in relation to a tenancy agreement
for a fixed term not exceeding 5 years,
the standard form prescribed for the
purposes of section 26(1);
(b) in relation to a tenancy agreement
for a fixed term of more than 5 years,
the standard form prescribed for the
purposes of section 26(1A)(b)(ii);".
(2) In section 3(1) of the Principal Act, in the
definition of fixed term tenancy agreement,
after "fixed term" insert "including, in the case
of a fixed term tenancy agreement for more
than 5 years, any extension of that tenancy
agreement exercised in accordance with a term
permitting the extension of that tenancy at the
end of the fixed term".
5 Section 6 repealed
Section 6 of the Principal Act is repealed.
6 Tenancy agreements to be in standard form
(1) For section 26(1) of the Principal Act
substitute--
"(1) If a tenancy agreement for a fixed term not
exceeding 5 years is in writing, it must be
in the standard form tenancy agreement for
a fixed term not exceeding 5 years.".
3
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
(2) After section 26(1) of the Principal Act insert--
"(1A) A tenancy agreement for a fixed term of
more than 5 years--
(a) must be in writing; and
(b) must be--
(i) in the standard form tenancy
agreement for a tenancy
agreement for a fixed term not
exceeding 5 years; or
(ii) in the standard form tenancy
agreement for a tenancy
agreement for a fixed term of
more than 5 years.".
(3) In section 26(2) of the Principal Act, after
"tenancy agreement" insert "for a fixed term
not exceeding 5 years".
(4) After section 26(2) of the Principal Act insert--
"(2A) A landlord or tenant must not prepare
or authorise the preparation of a tenancy
agreement for a fixed term of more than
5 years if the agreement is not either--
(a) in the standard form tenancy agreement
for a tenancy agreement for a fixed
term not exceeding 5 years; or
(b) in the standard form tenancy agreement
for a tenancy agreement for a fixed
term of more than 5 years.
Penalty: 10 penalty units.".
4
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
7 New section 26A inserted
After section 26 of the Principal Act insert--
"26A Offence to include prescribed prohibited
term in tenancy agreement for fixed term
of more than 5 years
(1) A landlord or tenant must not prepare
or authorise the preparation of a tenancy
agreement for a fixed term of more
than 5 years that contains a prescribed
prohibited term.
Penalty: 10 penalty units.
(2) If a tenancy agreement for a fixed term
of more than 5 years contains a prescribed
prohibited term, that term is void and
unenforceable.".
8 Section 27 substituted and new section 27A inserted
For section 27 of the Principal Act substitute--
"27 Invalid terms
(1) Subject to subsection (3), a term of a
tenancy agreement is invalid if it purports
to exclude, restrict or modify or purports
to have the effect of excluding, restricting
or modifying--
(a) the application to that tenancy
agreement of all or any of the
provisions of this Act; or
(b) the exercise of a right conferred
by this Act.
(2) A term referred to in subsection (1) includes
a term that is not set out in the tenancy
agreement but is incorporated in it by
another term of the tenancy agreement.
5
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
(3) Subsection (1) does not apply to a term of a
standard form tenancy agreement for a fixed
term of more than 5 years that is inconsistent
with, or varies the requirements of, this Part.
(4) A provision in a written tenancy agreement
or any other agreement that requires a party
to a written tenancy agreement to bear any
fees, costs or charges incurred by the other
party in connection with the preparation of
the tenancy agreement is invalid.
27A Additional term in fixed term tenancy
agreement for more than 5 years
(1) Subject to subsection (2), a tenancy
agreement for a fixed term of more than
5 years may include a term agreed to
by the parties to the agreement that is
additional to the terms contained in the
standard form tenancy agreement for that
agreement.
(2) A person must not include an additional term
in a tenancy agreement for a fixed term of
more than 5 years if the additional term--
(a) excludes, restricts or modifies a
provision of the standard form tenancy
agreement for that agreement; or
(b) purports to exclude, restrict or modify a
provision of the standard form tenancy
agreement for that agreement.
Penalty: 10 penalty units.".
6
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
9 Not more than 1 bond is payable in respect of
continuous occupation
At the foot of section 34 of the Principal Act
insert--
"(2) Subsection (1) does not apply to a tenancy
agreement for a fixed term of more than
5 years in the standard form tenancy
agreement referred to in
section 26(1A)(b)(ii).".
10 New sections 34A and 34B inserted
After section 34 of the Principal Act insert--
"34A Additional amount of bond proportionate
with rent increase
(1) This section applies to a tenancy agreement
for a fixed term of more than 5 years in the
standard form tenancy agreement referred to
in section 26(1A)(b)(ii).
(2) The landlord may require the tenant to pay
an additional amount of bond, if--
(a) the landlord has given 120 days written
notice in a form approved by the
Director to the tenant requiring an
additional payment of bond; and
(b) the additional payment of bond is
required by the landlord after the expiry
of a period of 5 years of continuous
occupation by the tenant; and
(c) the fixed term of the tenancy
agreement--
(i) is extended by a period of at least
5 years from the expiry of the first
fixed term; or
(ii) has an unexpired period of 5 years
or more; or
7
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
(iii) commences after a periodic
tenancy; or
(iv) commences after the expiry of a
fixed term tenancy agreement,
whether in the form prescribed
for the purposes of section 26(1)
or 26(1A)(b)(ii).
(3) An additional amount of bond under
subsection (2) is an amount determined by--
(a) calculating a total amount of bond for
the next 5 year period of the tenancy
agreement by using the rent payable at
the commencement of the next 5 year
period of the tenancy agreement as a
basis for that bond's calculation; and
(b) subtracting the total amount of bond
currently lodged with the Authority
from the total amount of bond
calculated under paragraph (a).
Example
For the first 5 year period of a tenancy agreement,
the rent payable is $400 per week. The bond is
4 weeks rent, or $1600. For the next 5 year period of
the tenancy agreement, occurring immediately after
the first period, the rent payable is increased to
$520 per week. The bond amount calculated by
4 weeks rent at the new amount of rent payable
($520 per week) is $2080. If a term referred to in this
section is included in the tenancy agreement, the
landlord would be permitted to require the tenant to
pay an additional amount of bond for $480. This
amount is proportionate to the increase in rent payable
under the tenancy agreement.
(4) The additional amount of bond referred to in
subsection (3) must be paid by the tenant on
or before the end of the period of notice
referred to in subsection (2)(a).
8
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
(5) The landlord must not require an additional
amount of bond more than once in any 5 year
period of a tenancy agreement to which this
section applies.
34B Tenant may apply to VCAT to vary
additional amount of bond
(1) If a landlord requires an additional amount of
bond under section 34A, the tenant may
apply to VCAT--
(a) to vary any term in the tenancy
agreement that permits the landlord to
require an additional amount of bond;
or
(b) to vary the amount of additional
amount of bond to be paid.
(2) VCAT may make any order that VCAT
considers appropriate if satisfied that not
making an order would result in severe
hardship for the tenant.
(3) In making an order under subsection (2),
VCAT is to have regard to--
(a) whether the landlord or tenant are
otherwise in breach of any term of the
tenancy agreement or this Act; and
(b) the financial circumstances of the
tenant and the landlord; and
(c) the condition of the rented premises;
and
(d) any other matter VCAT considers to be
relevant to the making of the order.".
9
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 2--Amendments relating to tenancy agreements
11 Power to enter tenancy agreements or other
agreements
(1) In section 94(1) of the Principal Act, after
"tenancy agreement" insert "for a fixed term
not exceeding 5 years".
(2) After section 94(3A) of the Principal Act insert--
"(3B) A rooming house owner and a resident
cannot enter into a tenancy agreement
for a fixed term of more than 5 years.".
12 Regulations
(1) In section 511(1)(f) of the Principal Act, after
"tenancy agreement" insert "for a fixed term not
exceeding 5 years".
(2) After section 511(1)(f) of the Principal Act
insert--
"(faa) prescribing standard form tenancy
agreements for tenancy agreements, or
classes of tenancy agreements, for a
fixed term of more than 5 years, including
but not limited to the following--
(i) prescribing terms which may be
inconsistent with, or vary the
requirements of, Part 2 (other than
Division 2 of that Part);
(ii) prescribing, in relation to tenancy
agreements for a fixed term of more
than 5 years, alternative terms which
may be included in the standard form
tenancy agreement or other form of
tenancy agreement, or classes of
tenancy agreement;
(faab) prescribing prohibited terms for tenancy
agreements, or classes of tenancy
agreements, for a fixed term of more
than 5 years;".
10
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 3--Amendments relating to compensation and compliance
Part 3--Amendments relating to
compensation and compliance
13 New section 209AA inserted
After section 209 of the Principal Act insert--
"209AA Application for compensation or
compliance order for breach of
prescribed term in standard form
tenancy agreement
(1) Subject to subsection (2), if a party to a
fixed term tenancy agreement for more
than 5 years has breached a term of the
tenancy agreement, the other party may
apply to the Tribunal for a compensation
order or a compliance order.
(2) Subsection (1) does not apply to an
additional term in a fixed term tenancy
agreement for more than 5 years that is
included in the tenancy agreement under
section 27A(1).".
14 Orders of Tribunal
After section 212(1) of the Principal Act insert--
"(1A) In the case of an application under
section 209AA, if the Tribunal is satisfied
that the term of the tenancy agreement was
breached the Tribunal may make any or all
of the following orders--
(a) the party in breach must remedy the
breach as specified in the order;
(b) the party in breach must pay
compensation as specified in the
order;
(c) the party in breach must refrain from
committing a similar breach.".
11
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 4--Amendments relating to termination
Part 4--Amendments relating to termination
15 Creation of periodic tenancy
(1) For section 230(1)(b) of the Principal Act
substitute--
"(b) the tenant under that agreement continues in
occupation of the rented premises--
(i) otherwise than as a tenant under a fixed
term tenancy agreement; or
(ii) in the case of a fixed term tenancy
agreement for more than 5 years,
otherwise than in accordance with a
term in the agreement permitting the
extension of the term of that tenancy
at the end of the fixed term.".
(2) In section 230(3) of the Principal Act, after
"subsection (2)," insert "in the case of a tenancy
agreement for a fixed term not exceeding
5 years,".
(3) After section 230(3) of the Principal Act insert--
"(3A) Except as provided in subsection (2), in
the case of a tenancy agreement for a fixed
term of more than 5 years, the periodic
tenancy agreement is on the same terms,
so far as applicable, as the terms of a
standard form tenancy agreement for a
fixed term not exceeding 5 years.".
12
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 4--Amendments relating to termination
16 New section 237A inserted
After section 237 of the Principal Act insert--
"237A Tenancy agreement for a fixed term of
more than 5 years does not comply with
standard form
(1) This section applies if a tenancy agreement
for a fixed term of more than 5 years does
not comply with section 26(1A).
(2) Despite any term of the tenancy agreement
to the contrary, the tenant may give the
landlord a notice of intention to vacate the
rented premises.
(3) The notice under subsection (2) must
specify a termination date that is not less
than 28 days after the date on which the
notice is given.".
17 End of fixed term tenancy
For section 261(3) of the Principal Act
substitute--
"(3) The notice must be given--
(a) in the case of a fixed term tenancy
agreement for more than 5 years, not
less than--
(i) the prescribed period before the
end of the fixed term; or
(ii) if no period has been prescribed
under paragraph (i), 90 days
before the end of the fixed term;
or
(b) in the case of a fixed term tenancy
agreement for 6 months or more
(but not exceeding 5 years), not less
than 90 days before the end of the
fixed term; or
13
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 4--Amendments relating to termination
(c) in the case of a fixed term tenancy
agreement for less than 6 months,
not less than 60 days before the end
of the fixed term.".
18 Notice to vacate for no specified reason
For section 263(2) of the Principal Act
substitute--
"(2) The notice must specify a termination date
that is--
(a) in the case of a tenancy agreement for
a fixed term of more than 5 years, not
less than--
(i) the prescribed period; or
(ii) if no period is prescribed under
subparagraph (i), 120 days after
the date on which the notice is
given; or
(b) in the case of a periodic tenancy
agreement referred to in
section 230(3A), not less than--
(i) the prescribed period; or
(ii) if no period is prescribed under
subparagraph (i), 120 days after
the date on which the notice is
given; or
(c) for any other tenancy agreement,
not less than 120 days after the date
on which the notice is given.".
14
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Part 5--Repeal of amending Act
Part 5--Repeal of amending Act
19 Repeal of amending Act
This Act is repealed on 1 February 2020.
Note
The repeal of this Act does not affect the continuing operation
of the amendments made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
═════════════
15
Residential Tenancies Amendment (Long-term Tenancy Agreements)
Act 2018
No. of 2018
Endnotes
Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current
authorised versions of legislation and up-to-date legislative information.
Minister's second reading speech--
Legislative Assembly:
Legislative Council:
The long title for the Bill for this Act was "A Bill for an Act to amend the
Residential Tenancies Act 1997 to provide for tenancy agreements for a
fixed term of more than 5 years, to make consequential amendments and
for other purposes."
By Authority. Government Printer for the State of Victoria.
16
[Index] [Search] [Download] [Related Items] [Help]