Indicators

Topic 6: Rental reform

Proportion of Tasmanian households who privately rent their home, 1994-95
14.6%
Australian Bureau of Statistics, May 2022
Proportion of Tasmanian households who privately rent their home, 2019-20
21.7%
Australian Bureau of Statistics, May 2022
Average time to save for a deposit to buy a home, median income households, 2024
10.6 years
National Housing Supply and Affordability Council, 2025
What’s happening in Tasmania?

In Topic 3: Rental affordability, we highlighted the rental affordability crisis facing Tasmanians, fuelled by rapid and sustained rental increases over the past decade. Below, we make some comparisons with other Australian states and territories and highlight the need for robust rental protections and rights in legislation, to ensure that renting a home is a secure and enjoyable housing option for all Tasmanians.

In Australia, private rental has grown faster than any other housing tenure type over the past 20 years, driven by declining and delayed entry into home ownership and the contraction of social housing.[1] Renting a home is no longer a short-term option for many students, young people and low income earners, such that the number of lifelong renters in this country is growing.[2] While there is an increasing number of middle-class renters in Australia, renting also continues to be a critical housing tenure choice for people on low incomes, most of whom are priced out of buying a house and cannot readily access social housing.[3]

Renting does have some obvious benefits, including flexibility to relocate without significant financial penalties (such as paying stamp duty on the sale and purchase of property) and greater labour mobility.[4] However, home ownership is still seen as desirable in Australia because it offers a sense of security of tenure, housing stability and enduring connection to a particular neighbourhood.

However, renting would not be a ‘second-best’ housing outcome for people if there was tenure equity in Australia — in which similar social and economic benefits would be derived from different tenure choices such as renting or home ownership.[5] While “security, stability and a sense of belonging can be characteristics of rental housing under appropriate regulatory settings,” that’s not what most Tasmanian renters experience. [6]

In response to growing calls for action, governments have implemented a wave of reforms to residential tenancy acts in Australian jurisdictions in the 2020s, formalised by National Cabinet agreeing to ‘A Better Deal for Renters’ which is designed to harmonise and strengthen renters’ rights across Australia.[7]

References:

[1] Pawson, H, Milligan, V & Yates, J (2025), Housing Policy in Australia: A Case for Reform, Palgrave Macmillan, p. 340.

[2] Parliament of Australia (2025), Implications of Declining Home Ownership, Department of Parliamentary Services, May.

[3] Australian Institute of Health and Welfare (2025), Home Ownership and Housing Tenure, October.

[4] Parliament of Australia (2025), Implications of Declining Home Ownership, Department of Parliamentary Services, May.

[5] Pawson, H, Milligan, V & Yates, J (2025), Housing Policy in Australia: A Case for Reform, Palgrave Macmillan, p. 340.

[6] Pawson, H, Milligan, V & Yates, J (2025), Housing Policy in Australia: A Case for Reform, Palgrave Macmillan, p. 340.

[7] Prime Minister of Australia (2023), ‘Meeting of National Cabinet: Working together to deliver better housing outcomes,’ media release, 16 August.

What’s happening in Tasmania? #2

Tasmania’s Residential Tenancy Act 1997 (Tas) is due for periodic review in 2027.[1] In August 2025, the Tenants’ Union of Tasmania sent a letter to all newly elected members of the House of Assembly calling for a comprehensive review of the Act as a matter of urgency and increased funding for tenant advocacy services.[2] This called was echoed by other housing advocates, including Shelter Tasmania and TasCOSS.

In September 2025, the Attorney-General, Hon Guy Barnett MP, told Parliament that “a comprehensive wholesale review of the residential tenancy legislation” will commence in early 2026.

This year, some progress has been made towards providing stronger rental protections and rights for Tasmanian tenants, as follows:

  • Pets in rentals: The Residential Tenancy Amendment (Pets) Bill 2025 has passed the Tasmanian Parliament.[3] Once enacted, this amendment will mean that only the Tribunal can determine that a pet cannot be kept of the premises.[4]
  • Safety amendments: The Residential Tenancy Amendment (Safety Modifications) Bill 2025 is currently before the Parliament. If passed and enacted, this amendment would permit tenants to make safety modifications to their rental home and only seek consent where that modification will cause permanent damage.[5]
  • Caravan park residents: In its latest 100 Day Plan covering 29 November 2025 to 9 March 2026, the Tasmanian Government has committed to introduce legislation to protect the rights of long-term residents in caravan parks.[6]

However, there is still a compelling need for the Residential Tenancy Act 1997 (Tas) to be significantly revised to ensure better protections for Tasmanian renters, especially in relation to:

  • Reasonable grounds for evictions;
  • Retaliatory eviction provisions;
  • Rent controls;
  • Bans on unsolicited rent bidding;
  • Domestic and family violence protections;
  • Limits on break-lease fees;
  • Protections for renters’ personal information;
  • Minimum rental housing standards, especially energy efficiency;
  • Regulation of short-stay accommodation;
  • Marginal or vulnerable renters in boarding or rooming houses; and
  • Protections for social housing tenants.[7]

References:

[1] For more information, please see Residential Tenancy Act 1997 (Tas).

[2] Tenants’ Union on Tasmania (2025), ‘Call for review of the Residential Tenancy Act 1997 (Tas),’ media release, 8 August.

[3] Premier of Tasmania (2025), ‘Working to allow pets in rentals,’ media release, 12 November

[4] Tasmanian Government (2025), Residential Tenancy Amendment (Pets) Bill 2025 fact sheet.

[5] For more information, please see Residential Tenancy Amendment (Safety Modifications) Bill 2025.

[6] Tasmanian Government (2025), Our 2030 Strong Plan for Tasmania’s Future: The Next 100 Days (29 November 2025-9 March 2026).

[7] Shelter Tasmania (2025), The Rental Report: A 2 Year Performance Report on the Progress of A Better Deal for Renters.

What does the data show?

Headline indicators:

  • The proportion of the Tasmanian population who rent from private landlords (rather than renting social housing, buying a house with a mortgage or owning their home outright) increased by 50% from 14.6% in 1994-95 to 21.7% in 2019-20 [latest available figures].
  • The average length of time for median income earners in Australia to save a 20% deposit to buy a home was 10.6 years in 2024, a near record high.

Figure 6.1: Between 1994-95 and 2019-20, ABS data shows that the proportion of households renting social housing or were homeowners without a mortgage both fell, while the proportion of households who were homeowners with a mortgage or renting from a private landlord both rose.

What does the data show? #2

Figure 6.2: In the past 12 months, Hobart’s rent prices for both houses and units have continued to increase (by 6% and 11% respectively), which is a faster growth rate than all other capital cities other than Perth.

Figure 6.3: The SGS Rental Affordability Index shows that rents are either unaffordable or moderately unaffordable in every jurisdiction (with an index Score below 121), except for the Australian Capital Territory (ACT). Importantly, this data also shows there is a positive relationship between rental rights and rental affordability. While Victoria and the ACT have the strongest rental rights of all jurisdictions, they also have the best rental affordability nationally: the ACT ranks first (with an Index score of 133) and Melbourne second (with an Index Score of 118).

Figure 6.4: Victoria generally has the strongest tenant protections in Australia. In comparison with other jurisdictions, Tasmania has made some recent improvements to key rental protections and rights, but evictions at the end of fixed terms (with no specific reason) are still allowed.

TasCOSS’s view 

Tasmanians are currently facing a dual crisis of housing affordability and tenure insecurity. While other Australian jurisdictions — notably Victoria, Queensland, South Australia and the Australian Capital Territory — have recently moved to modernise their residential tenancy acts, Tasmania is at risk of falling behind. Despite recent legislative attention, significant gaps remain that leave Tasmanian renters vulnerable to arbitrary eviction, substandard housing conditions, and unpredictable housing costs.

Given that more Tasmanians on low incomes are expected to be renting their homes for longer periods of time, and perhaps for their lifetime, the quality of that housing experience is arguably more important than ever. A critical way to improve people’s experience is to ensure that adequate rental protections and rights are in place which increase security of tenure and ensure minimum housing standards. While vacancy rates in Tasmania are at record-lows and amongst the lowest nationally, the power differential between tenants and landlords remains significant.

The upcoming review of the Residential Tenancy Act 1997 (Tas) presents a critical opportunity to reset this relationship. As Dr Jed Donoghue from The Salvation Army Tasmania has noted, “reasonable people realise that it is important to maintain a tenancy system that protects both tenants and landlords and enables people who rent their homes to lead healthy, safe and productive lives.”[1]

 [1] Council to Homeless Persons (2023), Parity: Reforming Residential Tenancy Acts, June, vol. 26, no. 4.

TasCOSS’s recommendations

TasCOSS is calling on the Tasmanian Government to:

  1. Review and reform the Residential Tenancy Act 1997 (Tas) to provide better protections and rights for Tasmanian renters, especially in relation to no-grounds evictions and rental increases.
  2. Ensure the Tenants’ Union of Tasmania has adequate long-term, core funding to deliver essential legal services for renters in the North and North-West, at an estimated cost of $300,000 per annum.

For TasCOSS’s recommendations about rental affordability, see Topic 3: Rental affordability.