Residential Tenancy Reforms to Commence in 2025

Eales & Mackenzie Lawyers Melbourne

By Pinar Acay

The Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 is set to bring increased protections for renters and additional obligations for property professionals in Victoria. Most of the provisions of the Act will come into operation by no later than 25 November 2025.

Annual Smoke Alarm Safety Checks 

Central to the Act is the extension of mandatory annual smoke alarm safety checks to all rental properties, regardless of when the lease began. Previously, only leases signed after 29 March 2021 were covered. This change was driven by advocacy from the Scarff family, following the tragic death of Simon Scarff in a house fire in a property without a smoke alarm. The reform will now cover around 240,000 additional rental properties, ensuring a consistent safety standard across the state.

Rent Increases and No-Cause Evictions

The Act introduces stricter controls over rent increases. The notice period for rent increases and notices to vacate will increase from 60 to 90 days across private rentals, rooming houses, caravan parks and residential parks. In addition, Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal (VCAT) will be empowered to consider “prescribed matters” in reviews of excessive rent.

To further secure tenancy rights, no-cause evictions will be banned entirely. Landlords will still be able to evict tenants for valid reasons, such as personal occupancy or property damage but must provide clear justification.

Personal Information and Rental Applications

In response to concerns about invasive rental application practices, the Act will standardise rental application forms to prevent the collection of excessive or unnecessary personal data. It will also impose obligations on rental providers and agents to securely manage and destroy personal information once the information is no longer needed. Penalties will apply for non-compliance.

Rental bidding practices, both solicited and unsolicited, will be banned, alongside the acceptance of more than one month’s rent in advance.

The Act also prohibits residential rental providers and their agents from advertising or offering premises to let unless the rental providers and agents reasonably believe the premises comply with the rental minimum standards.

Licensing and Education for Property Professionals

The Act mandates licensing and registration for key roles in the property industry, including agents’ representatives and owners corporation managers. These professionals will now need to meet formal eligibility criteria and complete initial and continuing professional development (CPD) to ensure competence and accountability.

Changes to the Estate Agents Act 1980 and Sale of Land Act 1962 will also introduce stricter penalties for underquoting and misleading conduct by real estate agents. The maximum penalty for misrepresentation will increase to 240 penalty units, and courts will gain greater powers to confiscate commissions in underquoting cases.

Establishment of Rental Dispute Resolution Victoria

A new body, Rental Dispute Resolution Victoria (RDRV), will be established as a one-stop shop for resolving simple tenancy disputes through alternative dispute resolution (ADR). Delivered by VCAT, RDRV will triage cases early and aim to resolve issues via mediation or facilitated discussions before reaching formal hearings. If the parties agree to settle an RDRV proceeding, VCAT will be empowered to make any orders necessary to give effect to the settlement.

This information is general in nature and not a substitute for legal advice based on your individual circumstances. For tailored advice about your situation, speak with our senior property lawyer Pinar Acay on (03) 8621 1000 or (03) 9331 1144.

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