New renting laws and transitional regulations

New residential tenancy laws came into effect on 29 March 2021 under the Residential Tenancies Act 1997. The COVID-19 temporary emergency measures, introduced in 2020 in response to the COVID-19 pandemic, have ended.

Transitional Regulations have been introduced that affect some VCAT orders and applications as we transition to the new laws.

See Consumer Affairs Victoria's summary of the new laws and Transitional Regulations

Important aspects of the Transitional Regulations affecting VCAT applications include:

  • Referrals from the Residential Tenancies Dispute Resolution Scheme (RTDRS) on 28 March 2021 – If there was an eligible dispute being dealt with under the RTDRS when the scheme ended, it will be referred to VCAT. Once you have a referral, you can apply to VCAT and VCAT will make a decision as if the Emergency Measures still applied.

  • Current VCAT applications – Any VCAT application, made under the COVID-19 Omnibus (Emergency Measures) Transitional Regulations 2021, that has not had a hearing yet, will also be dealt with as if the emergency measures still applied.

  • Postponed (adjourned) applications for possession for rent arrears, made before 29 March 2020 – If an application for possession based on a notice to vacate for rent arrears was made before 29 March 2020, and was adjourned by VCAT before that date, when the application is renewed, VCAT will make a decision as if the law in effect before 29 March 2020 applies.

  • Liability for lease break fees – In certain circumstances, renters (tenants) and site tenants will not be liable for charges associated with a breach of fixed term agreement on certain applications for compensation made on or after 28 March 2021. This applies if, before 28 March 2021, a notice of intention to vacate was given by the renter to the rental provider (landlord) under Part 6 of the Act, certain other criteria apply (such as severe hardship), and the renter vacated the property after the termination date in the notice.

  • Rental providers (landlords) with termination orders – An application can be made for a possession order under Part 7 of the Act, if VCAT made a termination order before 28 March 2021 (or after 28 March 2021 if the matter is referred to VCAT at the end of the RTDRS). In effect, the application is treated as if the termination order was a notice to vacate. These applications for possession will need to be made within 30 days of the termination date on the VCAT order. These applications are made under s322(1), Regulation 6 (for residential rental agreements).

  • Warrants of possession cannot be issued in some circumstances – If you are a rental provider (landlord) who applied for a possession order on the basis of a notice vacate before 25 April 2020 and VCAT has made a possession order after 29 March 2020, you will not be able to obtain a warrant of possession.

  • Warrants of possession cannot be issued in some circumstances – If you are a rental provider who obtained a possession order on the basis of a notice to vacate before 29 March 2020, but VCAT made an order temporarily preventing the issue of a warrant of possession whilst the emergency measures were in effect, you will not be able to obtain a warrant of possession.

  • Notices to vacate for rent arrears cannot be given in some circumstances – If a rental provider (landlord) has made an application to VCAT about a payment related dispute (such as rent reduction) which has been referred from Consumer Affairs Victoria under the Transitional Regulations, and VCAT hasn't made a decision about it, the rental provider cannot give the renter a Notice to Vacate for rent arrears.

  • New applications relating to Dispute Resolution Orders or written agreements – There are three new applications that can be made to VCAT:

    • An application to amend, cancel or extend time to comply with a dispute resolution order made by the Chief Dispute Resolution Officer under the RTDRS (application under Regulation 9 of the COVID-19 Omnibus (Emergency Measures) Transitional Regulations 2021)
    • An application by a party who alleges that the other party has not complied with a dispute resolution order made by the Chief Dispute Resolution Officer under the RTDRS (application under Regulation 10 of the COVID-19 Omnibus (Emergency Measures) Transitional Regulations 2021)
    • An application to amend, cancel or extend time to comply with a written agreement prepared under regulation 18(2) of the COVID-19 Regulations under the RTDRS (application under Regulation 11 of the COVID-19 Omnibus (Emergency Measures) Transitional Regulations 2021).
       
  • Certain possession orders for rent arrears may be delayed – Possession applications based on a Notice to Vacate for rent arrears cannot be decided by VCAT before applications made under Regulation 9 (to amend, cancel or extend time to comply with a dispute resolution order) are determined.

How to apply or respond to a VCAT application