Fixed-term tenancy (New Zealand)

A New Zealand residential tenancy granted for a specific period with a defined start and end date, governed by the Residential Tenancies Act 1986.

ProppiAI Editorial Team, "Fixed-term tenancy (New Zealand)", ProppiAI, 2026-04-15.

A fixed-term tenancy in New Zealand runs for the period stated in the tenancy agreement — commonly six or twelve months — and automatically converts to a periodic tenancy at the end unless the parties have agreed otherwise in writing before expiry.

During the fixed term, neither party can end the tenancy early without the other's agreement or an order from the Tenancy Tribunal, except on the limited statutory grounds set out in the Residential Tenancies Act 1986. Rent cannot be increased during a fixed term unless the agreement specifically provides for it.

Fixed-term tenancies are the preferred structure when landlords want revenue certainty, but they also restrict flexibility on both sides during the term.


An Australian federal approval required before a foreign person acquires certain interests in Australian residential real estate, administered under the Foreign Acquisitions and Takeovers Act 1975.

ProppiAI Editorial Team, "Foreign Investment Review Board (FIRB) approval", ProppiAI, 2026-04-15.

Foreign persons — including non-resident individuals, foreign corporations, and certain trusts — generally need approval under the Foreign Acquisitions and Takeovers Act 1975 before acquiring residential real estate in Australia. The application is made to the Australian Taxation Office, which administers the residential real estate rules on behalf of the Treasurer.

The policy restricts foreign buyers to new dwellings, off-the-plan purchases, and vacant residential land intended for development, with narrow exceptions for temporary residents buying an established dwelling as a principal place of residence. A fee applies to each application.

Since December 2023, fees have been significantly increased on established dwelling applications by foreign investors to support the government's housing policy. Approval conditions, fees, and eligibility rules are set by the Treasurer and change periodically — always verify against the foreigninvestment.gov.au guidance before acting.


Healthy Homes Standards

New Zealand minimum standards for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping in residential rental properties, enforced under the Residential Tenancies Act 1986.

ProppiAI Editorial Team, "Healthy Homes Standards", ProppiAI, 2026-04-15.

The Healthy Homes Standards set specific, measurable requirements for five areas of a rental property: a fixed heater in the main living room sized to the room, ceiling and underfloor insulation meeting minimum R-values, an extraction fan in kitchens and bathrooms, protection from moisture and adequate drainage, and stopping unreasonable draughts.

Compliance is mandatory for all private residential rentals, and a compliance statement must be included with new, renewed, or varied tenancy agreements. A separate Healthy Homes Standards Report documents the assessment against each standard.

Tenancy Services, administered by MBIE, publishes the full technical detail of each standard and is the primary source landlords should reference when assessing compliance.


New Zealand tax rules governing whether interest on loans for residential rental property is deductible against rental income. Restrictions introduced in 2021 have since been progressively reversed.

ProppiAI Editorial Team, "Interest deductibility (New Zealand residential rentals)", ProppiAI, 2026-04-15.

Interest deductibility determines whether New Zealand residential rental owners can claim the interest component of their mortgage as an expense. The rules introduced from 1 October 2021 phased out deductions for interest on existing residential rental loans, with limited exceptions for new builds.

Legislation passed in 2024 reinstates interest deductibility in stages: 80% of interest is deductible for the 2024–25 income year and 100% from 1 April 2025 onwards. The rules apply differently to properties acquired before and after the relevant commencement dates.

Because the historical treatment affects unused deductions carried forward, owners should read IRD's guidance directly rather than relying on older commentary.


Land tax (New South Wales)

An annual tax imposed by Revenue NSW on the unimproved value of land owned in New South Wales above a threshold, with the principal place of residence generally exempt.

ProppiAI Editorial Team, "Land tax (New South Wales)", ProppiAI, 2026-04-15.

Land tax in New South Wales is assessed each year on 31 December by Revenue NSW, using the land values provided by the Valuer General. It applies to the aggregate taxable value of all land owned by a taxpayer in the state, with a tax-free threshold and a premium threshold that attract different rates.

The principal place of residence is generally exempt, as is land used primarily for primary production. Investment properties, holiday homes, and vacant land are typically liable, as is land held through discretionary trusts, which can be subject to a surcharge.

Foreign persons who own residential property in New South Wales may also be liable for a separate surcharge land tax in addition to the standard land tax. Thresholds and rates change annually — always verify the current numbers directly on Revenue NSW before relying on them.


Land tax (Victoria)

An annual tax imposed by the State Revenue Office Victoria on the site value of land owned in Victoria above a threshold, plus a temporary COVID debt levy surcharge in effect from 2024.

ProppiAI Editorial Team, "Land tax (Victoria)", ProppiAI, 2026-04-15.

Victorian land tax is assessed annually on the total taxable value of land a person owns in Victoria at midnight on 31 December. The principal place of residence is generally exempt, and several other exemptions exist including primary production land and certain charitable uses.

From the 2024 land tax year, Victoria introduced a temporary COVID debt levy, lowering the general threshold and adding fixed and variable charges on top of the standard land tax. Absentee owners and trusts attract surcharge rates.

A separate vacant residential land tax applies to residential properties in specified council areas that are unoccupied for more than six months in a calendar year, with expansion to all of Victoria from 2025. Thresholds and rates change each year — use the State Revenue Office as the primary source.


Landlord insurance

A specialised insurance policy that covers risks specific to renting out residential property, including loss of rent, tenant-caused damage, and liability, in addition to standard building and contents cover.

ProppiAI Editorial Team, "Landlord insurance", ProppiAI, 2026-04-15.

Landlord insurance is written specifically for owners of residential rental property and typically bundles building cover, contents cover for landlord-owned chattels, and rental-specific sections such as loss of rent following an insured event and cover for malicious or accidental damage by tenants.

Policy wordings vary significantly between insurers and between New Zealand and Australia. Common coverage gaps to check include the definition of "sum insured" for the building, how loss of rent is triggered, exclusions for wear and tear, any deliberate-act exclusions, and whether meth contamination (New Zealand) or specific water-damage events are covered.

Landlord insurance is not mandated by statute in either country, but most mortgage lenders require building insurance as a loan condition, and the Residential Tenancies Act 1986 (New Zealand) requires landlords to disclose insurance information to tenants at the start of a tenancy.


Main home exclusion

A New Zealand exemption that prevents profits on the sale of a person's main home from being taxed under the bright-line test, subject to use and timing conditions.

ProppiAI Editorial Team, "Main home exclusion", ProppiAI, 2026-04-15.

The main home exclusion removes the bright-line test from applying to the sale of a property that has been used as the owner's main home, provided the statutory conditions are met. Broadly, the property must have been used predominantly as the main home for the required proportion of the ownership period.

The rules differ by acquisition date: for properties bought between 27 March 2021 and 30 June 2024, a "change of use" rule can make part of the gain taxable if the property was not the main home for more than 12 months at a time. For properties acquired on or after 1 July 2024, the simpler pre-2021 main home test applies.

Anyone relying on this exclusion on a sale near the end of the bright-line period should read the IRD guidance for their specific acquisition date.


Main residence exemption

An Australian capital gains tax exemption that disregards any capital gain or loss on the sale of a dwelling that has been the taxpayer's main residence for the whole ownership period.

ProppiAI Editorial Team, "Main residence exemption", ProppiAI, 2026-04-15.

The main residence exemption removes capital gains tax from the sale of a dwelling where the taxpayer lived in it as their home for the entire period of ownership, and the dwelling was not used to produce assessable income. Where those conditions are only met for part of the period, a partial exemption applies.

Key conditions include the requirement that the dwelling be on land of two hectares or less, that the taxpayer be a resident for tax purposes (the exemption was removed for foreign residents for most CGT events on or after 30 June 2020), and that only one dwelling be treated as the main residence at a time.

The exemption interacts with the six-year rule, which allows a main residence to be rented out for up to six years without losing the exemption if no other property is treated as the main residence in that period.


Meth contamination (New Zealand)

Residue from the use or manufacture of methamphetamine in a New Zealand residential rental property. Standards for testing and remediation are set out in NZS 8510 and landlords have disclosure obligations under the Residential Tenancies Act 1986.

ProppiAI Editorial Team, "Meth contamination (New Zealand)", ProppiAI, 2026-04-16.

Meth contamination is methamphetamine residue left in a residential property as a result of the drug being used or manufactured on the premises. The New Zealand Standard NZS 8510:2017 sets the technical thresholds for testing and remediation that Tenancy Services references when assessing landlord and tenant obligations.

Under the Residential Tenancies Act 1986, landlords must disclose known contamination to prospective tenants, keep the property in a condition that meets the standard, and cannot require the tenant to bear remediation costs for contamination that existed before their tenancy began. Tenants must not contaminate the property themselves, and a landlord who can prove meth contamination caused by a tenant can seek remediation costs through the Tenancy Tribunal.

Whether specific test results require remediation depends on the concentration measured against NZS 8510 levels and whether the property is currently tenanted — Tenancy Services publishes the operational guidance, and insurance policies vary materially on what they do and don't cover.


Negative gearing

An Australian tax treatment that allows a net loss from a rental property — where deductible expenses exceed rental income — to be offset against the investor's other assessable income in the same year.

ProppiAI Editorial Team, "Negative gearing", ProppiAI, 2026-04-15.

A rental property is "negatively geared" when its deductible expenses — interest, depreciation, repairs, rates, management fees, and insurance — exceed the rental income it produces. Under current Australian tax law, the net loss can be applied against other taxable income such as salary, reducing the investor's overall tax bill for the year.

Negative gearing does not create a permanent tax saving; it shifts timing. Any capital gain on sale is assessed separately, typically with the capital gains tax discount for assets held more than 12 months. The strategy works only where the expected after-tax total return — rental income plus capital growth net of tax — is positive.

Unlike New Zealand's rental loss ring-fencing regime, Australia does not quarantine residential rental losses at the individual level, which is a frequent source of confusion for investors who operate across both countries.


Periodic tenancy (New Zealand)

A New Zealand residential tenancy that continues indefinitely until either party ends it with the notice period required by the Residential Tenancies Act 1986.

ProppiAI Editorial Team, "Periodic tenancy (New Zealand)", ProppiAI, 2026-04-15.

A periodic tenancy has no fixed end date and rolls on week to week or month to month. It ends only when the tenant gives the required notice, the landlord gives notice on a ground permitted by the Residential Tenancies Act 1986, or both parties agree in writing.

Since the 2020 amendments to the Act, landlords can no longer end a periodic tenancy "without cause"; termination requires a specified ground such as sale with vacant possession, the landlord or a family member moving in, or extensive renovations. The statutory notice period depends on the ground.

Periodic tenancies contrast with fixed-term tenancies, which end on a specified date unless the parties agree in writing to continue or vary them.


Rent increase (New Zealand)

An increase in the rent charged under a New Zealand residential tenancy. Under the Residential Tenancies Act 1986, rent can only be increased once every 12 months and requires at least 60 days' written notice to the tenant.

ProppiAI Editorial Team, "Rent increase (New Zealand)", ProppiAI, 2026-04-16.

The Residential Tenancies Act 1986 limits how often a New Zealand landlord can raise rent on a residential tenancy. Rent can be increased no more than once in any 12-month period, and the landlord must give the tenant at least 60 days' written notice before the new rent takes effect. The notice must state the amount of the new rent and the date it applies from.

During a fixed-term tenancy, rent can only be increased if the tenancy agreement expressly allows it and the above 12-month / 60-day rules are still met. In periodic tenancies, the 12-month clock runs from the last rent increase (or the start of the tenancy, if there hasn't been one).

A tenant who believes a rent increase is "substantially above market rent" can apply to the Tenancy Tribunal to have it reviewed. The Tribunal can order the rent reduced to market rent and make the reduction binding for up to 12 months.


Rental loss ring-fencing

New Zealand rule that prevents residential rental losses from being offset against other income such as salary or wages. Losses are quarantined and carried forward to offset future rental profits.

ProppiAI Editorial Team, "Rental loss ring-fencing", ProppiAI, 2026-04-15.

Since the 2019–20 income year, residential rental losses in New Zealand cannot be used to reduce tax on other income. Any loss is "ring-fenced" and carried forward to offset rental profit or taxable land sale income in later years.

The rule applies on a portfolio basis by default — losses from one property can offset profits from another in the same portfolio — but taxpayers can elect property-by-property treatment. Certain categories, including mixed-use holiday homes and land that is taxable on sale under other rules, are excluded.

Ring-fencing is administered alongside the interest deductibility rules and the bright-line test, and all three need to be considered together when modelling after-tax returns on a New Zealand rental.


Rental yield

The annual rental return of an investment property expressed as a percentage of its value. Gross yield uses rent before expenses; net yield uses rent after operating costs but before tax and financing.

ProppiAI Editorial Team, "Rental yield", ProppiAI, 2026-04-15.

Rental yield is the simplest way to compare the income performance of two investment properties. Gross yield divides annual rent by the property value (or purchase price); net yield subtracts operating expenses such as rates, insurance, management fees, and maintenance before dividing. Neither figure accounts for mortgage interest or tax, which are treated separately in a full after-tax return calculation.

Yield conventions differ by market. New Zealand investors typically quote gross yield on purchase price, while Australian investors often see yield quoted on current market value — the two are not comparable without adjusting.

Yield is only one lens on an investment. A low-yield, high-capital-growth market behaves very differently from a high-yield, low-growth one, and the tax treatment in each country — ring-fencing in New Zealand, negative gearing in Australia — changes how net cash flow flows through to the investor's wallet.


Residential Tenancies Act 1986

The principal New Zealand statute governing residential tenancies. It sets out the rights and obligations of landlords and tenants, bond rules, notice periods, and the jurisdiction of the Tenancy Tribunal.

ProppiAI Editorial Team, "Residential Tenancies Act 1986", ProppiAI, 2026-04-15.

The Residential Tenancies Act 1986 (RTA) is the foundational legislation for residential renting in New Zealand. It covers the form of tenancy agreements, permitted fees and charges, bond handling, rent increase rules, minimum notice periods for termination, and the dispute resolution process through the Tenancy Tribunal.

The Act has been amended several times, most significantly by the Residential Tenancies Amendment Act 2020, which changed termination rules, introduced limits on rent increases, and embedded the Healthy Homes Standards as enforceable obligations.

For any question about landlord and tenant rights in New Zealand, the RTA (read alongside Tenancy Services guidance) is the primary source — not general tenancy templates or non-governmental commentary.


Retaliatory notice (New Zealand)

A termination notice given by a New Zealand landlord principally to retaliate against a tenant for exercising a right under the Residential Tenancies Act 1986. Retaliatory notices are prohibited and can be set aside by the Tenancy Tribunal.

ProppiAI Editorial Team, "Retaliatory notice (New Zealand)", ProppiAI, 2026-04-16.

The Residential Tenancies Act 1986 prohibits a New Zealand landlord from ending a tenancy principally because the tenant exercised, or proposed to exercise, a right under the Act — for example, complaining about Healthy Homes compliance, applying to the Tribunal, or requesting a repair. A termination notice given for that principal reason is a retaliatory notice.

A tenant who believes a notice is retaliatory can apply to the Tenancy Tribunal to have it declared invalid. If the Tribunal agrees, the notice has no effect and the tenancy continues. The Tribunal can also order exemplary damages against a landlord for unlawful conduct under the Act.

The prohibition exists to protect the tenant's right to enforce the Act without fear of losing their home, and it is one of the main reasons termination of a periodic tenancy now requires the landlord to cite a specific statutory ground rather than end it "without cause".


Six-year rule

An Australian CGT concession that allows a dwelling which was a taxpayer's main residence to continue to be treated as their main residence for up to six years while it is used to produce income.

ProppiAI Editorial Team, "Six-year rule", ProppiAI, 2026-04-15.

The six-year rule is an election under section 118-145 of the Income Tax Assessment Act 1997. If a taxpayer moves out of their main residence and rents it out, they can continue to treat it as their main residence for up to six years for CGT purposes, meaning no capital gain arises on sale within that window.

Only one dwelling at a time can be the main residence, so a taxpayer who buys a new home while claiming the six-year rule on their former home must generally choose which property will carry the exemption for any overlapping period.

If the taxpayer moves back in before the six years are up, the six-year clock resets — they can move out and rent the property again and start a new six-year period.


SMSF property investment

The purchase of real property by a self-managed superannuation fund in Australia, subject to the sole purpose test, the in-house asset rules, and the limited recourse borrowing arrangement (LRBA) rules where borrowing is involved.

ProppiAI Editorial Team, "SMSF property investment", ProppiAI, 2026-04-15.

A self-managed super fund can acquire residential or commercial real property, but only in a way that satisfies the sole purpose test — providing retirement benefits to members — and the fund's own investment strategy. Residential property acquired by an SMSF generally cannot be rented to a related party, and related-party acquisitions are prohibited except for business real property at market value.

Where an SMSF borrows to buy property, it must do so under a limited recourse borrowing arrangement (LRBA) that isolates the asset in a separate holding trust and limits the lender's recourse to that asset. The ATO publishes detailed rulings on what does and does not constitute a compliant LRBA.

Breaches of the SIS Act can make the fund non-complying and trigger significant tax consequences, so SMSF property investment is an area where professional advice before acquisition is genuinely important.


Tenancy Tribunal

The New Zealand dispute-resolution body with jurisdiction over residential tenancy matters under the Residential Tenancies Act 1986. It hears claims about bond, rent, repairs, notices, and breaches by either party.

ProppiAI Editorial Team, "Tenancy Tribunal", ProppiAI, 2026-04-15.

The Tenancy Tribunal is a specialist tribunal that hears disputes between landlords and tenants under the Residential Tenancies Act 1986. It can order bond refunds, rent arrears payments, work orders for repairs, termination of tenancies, and exemplary damages for specified breaches of the Act.

Before a hearing, Tenancy Services typically offers free mediation; matters that do not settle at mediation proceed to a tribunal hearing. Decisions are legally binding and are enforceable through the District Court.

There is a statutory limit on the Tribunal's monetary jurisdiction. Claims above that limit, or that involve complex legal issues, may be transferred to the District Court.


Transfer duty (New South Wales)

The New South Wales state tax payable on the transfer of dutiable property, most commonly the purchase of real estate, calculated on the dutiable value at rates published by Revenue NSW.

ProppiAI Editorial Team, "Transfer duty (New South Wales)", ProppiAI, 2026-04-15.

Transfer duty — still commonly called "stamp duty" — is the New South Wales state tax a buyer pays when dutiable property changes hands. For real estate, it is calculated on the greater of the purchase price and the unencumbered market value, using the progressive scale published by Revenue NSW.

First home buyers in New South Wales may be eligible for the First Home Buyers Assistance Scheme, which provides an exemption or concession for eligible purchases under specified price thresholds. Foreign purchasers of residential property are liable for an additional surcharge purchaser duty.

Transfer duty is generally payable within three months of the liability arising (typically contract date), with interest and penalties for late payment. Always read the current Revenue NSW pages directly before quoting thresholds or rates — they are adjusted periodically.


Australia Rental Tax Statistics 2022-23

Analysis of Australian Taxation Office rental property statistics for 2022-23, covering negative gearing, interest costs, investor concentration by state, taxable income bands, and multi-property investor patterns.

Australia
New South Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania
Australian Capital Territory
Northern Territory

2,261,080 Australians had rental property interests in 2022-23; 49.41% reported an overall net rent loss (ATO Individuals Table 27A, retrieved 30 April 2026).

Interest on loans made up 44.26% of total rental expenses reported on rental property schedules, making borrowing costs the dominant deduction category (ATO Individuals Table 26, retrieved 30 April 2026).

New South Wales was the largest rental-investor jurisdiction with 789,131 individuals, or 34.9% of the national rental-investor count in Table 27C (ATO Individuals Table 27C, retrieved 30 April 2026).

38.94% of rental investors had taxable income above $100,000, showing that the rental-investor base is concentrated above the median taxpayer income band (ATO Individuals Table 27B, retrieved 30 April 2026).

9.49% of rental investors held three or more rental property interests, while most investors held one or two interests (ATO Individuals Table 27A, retrieved 30 April 2026).

Rental property schedules recorded $1.59 billion in net rental income after expenses in 2022-23, even though almost half of investors were negatively geared overall (ATO Individuals Tables 26 and 27A, retrieved 30 April 2026).

ProppiAI Editorial Team, "Australia Rental Tax Statistics 2022-23", ProppiAI, 2026-04-30.

## Methodology

This report analyses the Australian Taxation Office's published Taxation statistics 2022-23 individuals rental-property tables. We downloaded the public XLSX workbooks for Individuals Table 26 and Individuals Table 27 from the data.gov.au mirror linked from the ATO statistics page, then parsed the 2022-23 rows into a deterministic JSON and CSV output.

The article figures are derived from [analysis-output.json](/data/research/au-rental-tax-statistics-2022-23/analysis-output.json), generated from the staged source workbooks and [provenance.json](/data/research/au-rental-tax-statistics-2022-23/provenance.json). The ATO source page is [Taxation statistics 2022-23: individuals statistics](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026.

Verbatim source attributions from the generated provenance file:

> Australian Taxation Office, Taxation statistics 2022-23, Individuals Table 26: rental property schedule items.

> Australian Taxation Office, Taxation statistics 2022-23, Individuals Table 27A: rental property interests by net rent position.

> Australian Taxation Office, Taxation statistics 2022-23, Individuals Table 27B: rental property interests by taxable income range.

> Australian Taxation Office, Taxation statistics 2022-23, Individuals Table 27C: rental property interests by state or territory.

The source data is licensed as **CC BY 4.0**. The analysis normalises the ATO tables into headline metrics only; it does not estimate unreported informal rental arrangements or infer investor wealth beyond the published taxable-income bands.

## What the ATO data shows

### Almost half of rental investors were negatively geared

In 2022-23, **2,261,080 individuals** had an interest in at least one rental property. Of those, **49.41%** reported an overall net rent loss, meaning their deductible rental expenses exceeded rental income at the individual level. This figure is computed from ATO Individuals Table 27A, which separates investors by property-interest count and overall net rent outcome ([ATO Individuals Table 27A](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026).

The negative-gearing share is not evenly distributed across the property-count ladder. Investors with one property interest dominate the count, but the analysis also found that **9.49%** of rental investors held three or more property interests. That tail matters because multi-property investors are a small share of people but a larger share of property interests ([ATO Individuals Table 27A](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026).

### Interest costs dominated rental deductions

ATO Table 26 records rental-property schedule income and expense categories. In 2022-23, interest on loans accounted for **44.26%** of total rental expenses in the parsed rental schedule rows. This makes borrowing costs the largest single pressure point in the rental tax data and helps explain why net rent losses remained common during the 2022-23 income year ([ATO Individuals Table 26](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026).

Across all parsed rental property schedules, net rental income after expenses was **$1.59 billion**. That aggregate profit can coexist with a 49.41% negative-gearing share because the two measures answer different questions: Table 26 totals schedule-level dollars, while Table 27A counts individuals by their overall net rent outcome ([ATO Individuals Tables 26 and 27A](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026).

## Investor concentration by state

New South Wales had the largest rental-investor count in 2022-23, with **789,131 individuals**, or **34.9%** of the national Table 27C investor count. Victoria followed with 573,988 individuals, then Queensland with 376,211. The distribution broadly follows population and property-market scale, but the New South Wales concentration is still notable: roughly one in three rental investors in the ATO table is attached to New South Wales ([ATO Individuals Table 27C](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026).

| State or territory           | Individuals |  Share |
| ---------------------------- | ----------: | -----: |
| New South Wales              |     789,131 |  34.9% |
| Victoria                     |     573,988 | 25.39% |
| Queensland                   |     376,211 | 16.64% |
| Western Australia            |     217,836 |  9.63% |
| South Australia              |     132,660 |  5.87% |
| Overseas                     |      64,654 |  2.86% |
| Australian Capital Territory |      49,511 |  2.19% |
| Tasmania                     |      35,734 |  1.58% |
| Northern Territory           |      19,846 |  0.88% |
| Unknown                      |       1,509 |  0.07% |

## Taxable-income distribution

Rental investors were concentrated in middle and higher taxable-income bands. The analysis found that **38.94%** of investors with rental property interests had taxable income above $100,000, using the two upper Table 27B bands: `$100,001 - $500,000` and `More than $500,000` ([ATO Individuals Table 27B](https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23/statistics/individuals-statistics), retrieved 30 April 2026).

| Taxable income band | Individuals |  Share |
| ------------------- | ----------: | -----: |
| $100,001 - $500,000 |     846,686 | 37.45% |
| $50,001 - $100,000  |     657,347 | 29.07% |
| $18,200 - $50,000   |     437,096 | 19.33% |
| Less than $18,200   |     286,154 | 12.66% |
| More than $500,000  |      33,797 |  1.49% |

This does not mean every high-income taxpayer owns rental property, and it does not measure wealth. It does show that the rental-investor population in the ATO table is weighted toward taxable-income bands above $100,000 compared with the lower bands.

## What this means for landlords

The 2022-23 ATO rental tables show a market where debt costs are central. Interest on loans was the largest expense component in the parsed Table 26 data, and almost half of rental investors reported an overall net rent loss. For landlords, this makes record quality and expense categorisation unusually important: small errors in interest, repairs, agent fees, or other schedule items can materially change the tax position that appears in the annual return.

For a broader view of how tax paperwork fits with refinancing, tenancy deadlines, compliance documents, and portfolio decisions, see our Australian pillar guide: [What Amateur Property Investors Actually Need in Australia](/blog/what-amateur-property-investors-need-australia).

The data also shows that rental ownership is usually not a large-portfolio activity. Most individuals in Table 27A held one or two property interests, while 9.49% held three or more. That matters for software and advisory workflows: the typical landlord needs simple, high-confidence document capture for one or two properties, while the portfolio tail needs cross-property controls, attribution, and audit trails.

For policy readers, the key caution is that no single metric tells the whole rental-tax story. Negative gearing is a people-count measure in Table 27A; interest dominance is an expense-share measure in Table 26; state concentration comes from Table 27C; and taxable-income concentration comes from Table 27B. The combined picture is stronger than any single headline.


State-by-state analysis of residential rental compliance requirements across New South Wales, Victoria, and Queensland — smoke alarms, electrical safety, gas checks, condition reports, and minimum standards — with the gaps landlords most frequently miss.

New Zealand
Australia
New South Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania
Australian Capital Territory
Northern Territory

Victoria is the only Australian state that prohibits advertising a rental property that does not meet minimum standards — creating a compliance-before-listing obligation that does not exist in New South Wales or Queensland.

All three states require smoke alarms on every level, but Victoria mandates hardwired or 10-year lithium battery alarms in rentals, while New South Wales and Queensland still permit replaceable-battery alarms that meet AS 3786.

Victoria requires electrical safety checks every 2 years and gas safety checks every 2 years for tenancies starting on or after 29 March 2021 — neither New South Wales nor Queensland has an equivalent periodic safety check mandate for residential rentals.

Condition report requirements are universal but enforcement differs: in New South Wales, 70.2% of bond refunds are resolved by agreement; in Victoria, 95% are — suggesting Victoria's RTBA-mediated process produces fewer disputes over the same underlying document.

Mould and damp caused by building structure is classified as an urgent repair in Victoria, requiring landlord action within 24 hours — this classification does not exist in the same form in New South Wales or Queensland tenancy legislation.

ProppiAI Editorial Team, "Australian Landlord Compliance Gap Report 2026", ProppiAI, 2026-04-16.

## Methodology

This report compares residential rental compliance requirements across New South Wales, Victoria, and Queensland — the three largest Australian rental markets by bond volume — using each state's current tenancy legislation and published regulatory guidance as of early 2026.

**Sources:** [NSW Fair Trading](https://www.nsw.gov.au/housing-and-construction/rules/rental-property-condition-reports), [Consumer Affairs Victoria](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/minimum-standards/minimum-standards-for-rental-properties), [Queensland RTA](https://www.rta.qld.gov.au/during-a-tenancy/maintenance/smoke-alarms), [Tenants Victoria](https://tenantsvic.org.au/explore-topics/starting-your-tenancy/minimum-standards/), [Fire and Rescue NSW](https://www.fire.nsw.gov.au/page.php?id=290), [Rental Safety Inspections](https://rentalsafetyinspections.com.au/landlord-safety-obligations-australia/), and the relevant state Residential Tenancies Acts.

**Sample size** (968,350) refers to the number of active residential bonds held by NSW Fair Trading as at 30 June 2024 — used as the headline figure because NSW publishes the most granular bond data. Victoria and Queensland bond counts are not separately published in the same format but are estimated at approximately 600,000 and 500,000 respectively based on population-proportional rental market share.

**Limitations:** This report covers three of eight Australian jurisdictions. South Australia, Western Australia, Tasmania, the Australian Capital Territory, and the Northern Territory have their own compliance frameworks that may differ materially. The analysis is based on legislative requirements and published guidance, not on measured compliance rates — unlike New Zealand's Healthy Homes monitoring, no Australian state publishes a systematic landlord compliance rate for these safety categories.

---

## The compliance landscape: what each state requires

### Smoke alarms

Smoke alarm requirements are the most consistently mandated safety obligation across all three states, but the technical specifications differ.

| Requirement                           | New South Wales                                | Victoria                                                            | Queensland                                     |
| ------------------------------------- | ---------------------------------------------- | ------------------------------------------------------------------- | ---------------------------------------------- |
| Smoke alarms on every level           | Yes                                            | Yes                                                                 | Yes                                            |
| Applicable standard                   | AS 3786                                        | AS 3786                                                             | AS 3786                                        |
| Hardwired or 10-year lithium required | No — replaceable-battery alarms permitted      | Yes — hardwired or 10-year lithium only                             | No — replaceable-battery alarms permitted      |
| Annual check required                 | Yes — landlord must check annually             | Yes — tested at least every 12 months per manufacturer instructions | Yes — landlord responsibility                  |
| Battery replacement at new tenancy    | Yes — new battery required at start of tenancy | N/A (non-removable batteries)                                       | Yes — within 30 days of new tenancy or renewal |
| Replacement before expiry             | Within 10 years of manufacture                 | Within 10 years of manufacture                                      | Within 10 years of manufacture                 |
| Repair timeframe if faulty            | Within 2 business days                         | Treated as urgent repair                                            | Not separately specified                       |

Sources: [Fire and Rescue NSW](https://www.fire.nsw.gov.au/page.php?id=290), [Consumer Affairs Victoria](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/gas-electrical-and-water-safety-standards/rental-providers-gas-and-electrical-safety), [Queensland RTA](https://www.rta.qld.gov.au/during-a-tenancy/maintenance/smoke-alarms).

### Electrical safety

Victoria is the only state of the three that mandates periodic electrical safety checks for residential rentals.

| Requirement                      | New South Wales                                                                     | Victoria                                     | Queensland                       |
| -------------------------------- | ----------------------------------------------------------------------------------- | -------------------------------------------- | -------------------------------- |
| Periodic electrical safety check | No state mandate for residential                                                    | Every 2 years (tenancies from 29 March 2021) | No state mandate for residential |
| Safety switches required         | Yes — on power and lighting circuits in new builds; not retrofitted for all rentals | Yes — on every power circuit from March 2025 | Yes — on power circuits          |
| Licensed electrician required    | Yes, for any electrical work                                                        | Yes, for checks and work                     | Yes, for any electrical work     |
| Compliance certificate issued    | Not mandated for periodic checks                                                    | Yes — issued after each 2-yearly check       | Not mandated for periodic checks |

Source: [Consumer Affairs Victoria — gas and electrical safety](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/gas-electrical-and-water-safety-standards/rental-providers-gas-and-electrical-safety), [Rental Safety Inspections](https://rentalsafetyinspections.com.au/landlord-safety-obligations-australia/).

### Gas safety

The same Victorian leadership pattern applies to gas safety.

| Requirement                    | New South Wales                  | Victoria                                     | Queensland                       |
| ------------------------------ | -------------------------------- | -------------------------------------------- | -------------------------------- |
| Periodic gas safety check      | No state mandate for residential | Every 2 years (tenancies from 29 March 2021) | No state mandate for residential |
| Servicing of Type A appliances | Not mandated                     | Yes — in accordance with AS 4575             | Not mandated                     |
| Licensed gasfitter required    | Yes, for gas work                | Yes, for checks and work                     | Yes, for gas work                |
| Record of work provided        | Not mandated                     | Yes — per appliance serviced                 | Not mandated                     |

Source: [Consumer Affairs Victoria](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/gas-electrical-and-water-safety-standards/rental-providers-gas-and-electrical-safety).

### Condition reports

All three states require condition reports at the start and end of a tenancy, but the procedural requirements differ.

| Requirement                          | New South Wales            | Victoria                  | Queensland                   |
| ------------------------------------ | -------------------------- | ------------------------- | ---------------------------- |
| Condition report at start of tenancy | Yes                        | Yes                       | Yes (Entry Condition Report) |
| Copies to tenant before signing      | 2 copies (or 1 electronic) | 2 paper or 1 electronic   | 1 copy with Form 1a          |
| Tenant return period                 | 7 days                     | 3 business days           | 3 days                       |
| Photography required                 | Recommended, not mandated  | Recommended, not mandated | Recommended, not mandated    |
| Bond refund agreement rate           | 70.2% (2023–24)            | 95% (2023–24)             | Not separately published     |
| Full refund to tenant rate           | Not separately published   | 64% (2023–24)             | 57.2% (2023–24)              |

Sources: [NSW Fair Trading](https://www.nsw.gov.au/housing-and-construction/rules/rental-property-condition-reports), [VCAT](https://www.vcat.vic.gov.au/news/vcats-rental-dispute-backlog-has-today-reached-completion), [RentBetter](https://rentbetter.com.au/article/bond-claims-and-disputes-in-australia-10-facts-landlords-should-know).

### Minimum standards and advertising

| Requirement                                 | New South Wales              | Victoria                                                                                | Queensland                   |
| ------------------------------------------- | ---------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------- |
| Defined minimum standards checklist         | No state-published checklist | Yes — [Consumer Affairs Victoria checklist](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/minimum-standards/checklist-rental-properties-minimum-standards) | No state-published checklist |
| Illegal to advertise non-compliant property | No                           | Yes — significant fines                                                                                | No                           |
| Mould/damp as urgent repair                 | Not specifically classified  | Yes — if caused by building structure                                                                                | Not specifically classified  |
| Blind/curtain cord safety                   | No current mandate           | Yes — from 1 December 2025                                                                                | No current mandate           |

Source: [Consumer Affairs Victoria — minimum standards](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/minimum-standards/minimum-standards-for-rental-properties).

---

## The compliance gap: where landlords most often fall short

Based on the regulatory framework comparison above, the highest-risk compliance gaps for landlords operating across states are:

### 1. Victorian safety check obligations missed by interstate landlords

A landlord who owns properties in both New South Wales and Victoria may assume that the absence of a periodic electrical/gas check mandate in NSW means no such obligation exists anywhere. Victoria's 2-yearly electrical and gas safety check requirement — with compliance certificates — catches this assumption. The risk is highest for self-managing landlords without a property manager in each state.

### 2. Smoke alarm specification drift

New South Wales and Queensland still permit replaceable-battery smoke alarms, while Victoria requires hardwired or 10-year lithium. A landlord using the same alarm model across a multi-state portfolio may be compliant in NSW but non-compliant in Victoria. The technical requirement is specific: the alarm must be hardwired into the electrical system OR use a non-removable 10-year lithium battery.

### 3. Condition report thoroughness

The 95% agreement rate in Victoria versus 70.2% in NSW suggests that the condition report process — not just the document itself — shapes dispute outcomes. Victoria's RTBA system is designed to facilitate agreement before tribunal involvement. Landlords in NSW face a higher probability of disputed bond refunds, making the thoroughness of the initial condition report more consequential for dispute prevention.

### 4. Mould and damp classification

Victoria classifies mould and damp caused by building structure as an urgent repair, requiring landlord action within 24 hours. Neither New South Wales nor Queensland has the same classification. A landlord who treats a mould report as a routine maintenance item may be in breach of urgent repair obligations in Victoria without realising it.

---

## What this means for landlords

**If you own in Victoria:** You have the most prescriptive compliance framework of the three states. The minimum standards checklist, 2-yearly electrical and gas checks, hardwired smoke alarm requirement, and advertising prohibition mean that compliance is not optional at any stage of the tenancy lifecycle — from listing through to bond refund.

**If you own in New South Wales:** The absence of mandated periodic safety checks does not mean your properties are exempt from safety obligations. The Residential Tenancies Act 2010 still requires properties to be fit for habitation and in a reasonable state of repair. The 70.2% bond agreement rate means your condition report quality directly affects your dispute exposure.

**If you own across states:** Do not assume that the lowest-obligation state sets the standard. Each property must be managed against the compliance framework of the state it sits in. The gap between Victorian and NSW/Queensland obligations is the widest it has ever been, and it is widening — Victoria is consulting on additional minimum energy efficiency standards that will add further compliance obligations.

**In all states:** The condition report remains the single most important compliance document. It is both the legal record of the property's state at tenancy start and the primary evidence in bond disputes. A thorough, photographically documented condition report is the highest-return compliance action available to any Australian landlord.


A cross-market analysis of residential tenancy document requirements, compliance rates, and bond dispute patterns in New Zealand and Australia, sourced from government statistics and tribunal data.

New Zealand held 424,383 active rental bonds at the end of 2024, a 13% increase since 2020 — indicating a growing and increasingly formalised rental market.

New South Wales alone held 968,350 residential bonds as at 30 June 2024, with 323,026 new bonds lodged and 316,200 refunded during the year.

87% of New Zealand landlords report full Healthy Homes Standards compliance as of 2025, but proactive government assessments still find breaches in nearly half of inspected properties.

In Victoria, 64% of repaid bonds were returned in full to renters in 2023–24, while in Queensland 57.2% received a full refund — the gap reflects different state dispute cultures.

One quarter of all New Zealand tenant applications to the Tenancy Tribunal relate to Healthy Homes concerns, making it the single largest category of tenant-initiated complaints.

95% of Victorian bond claims are resolved by agreement without tribunal or court involvement, compared with the 70.2% agreement rate in New South Wales — suggesting different resolution infrastructure shapes outcomes.

ProppiAI Editorial Team, "New Zealand and Australia Rental Document Landscape 2026", ProppiAI, 2026-04-16.

## Methodology

This report synthesises publicly available government statistics from New Zealand and Australian tenancy authorities to build a cross-market picture of the residential rental document landscape. It is not based on proprietary ProppiAI ingestion data.

**New Zealand sources:** Tenancy Services (MBIE) [rental bond data](https://www.tenancy.govt.nz/about-tenancy-services/data-and-statistics/rental-bond-data/), [Healthy Homes Guarantee Act Monitoring Report Wave 4 (March 2024)](https://www.hud.govt.nz/assets/Uploads/Documents/Healthy-Homes-Guarantee-Act-Monitoring-Topline-Report-Wave-4-March-2024.pdf), Tenancy Tribunal application statistics via [RNZ reporting](https://www.rnz.co.nz/news/business/569098/quarter-of-all-tenant-applications-to-tenancy-tribunal-relate-to-concerns-about-healthy-homes), and the [Residential Tenancies Act 1986](https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html) (as at 20 March 2025).

**Australia sources:** [NSW Fair Trading rental bond data](https://www.nsw.gov.au/housing-and-construction/rental-forms-surveys-and-data/rental-bond-data) (2023–24), [Victoria RTBA bond claim statistics](https://www.vcat.vic.gov.au/news/vcats-rental-dispute-backlog-has-today-reached-completion) (2023–24), [Queensland RTA bond refund data](https://www.rta.qld.gov.au/starting-a-tenancy/entry-condition-report) (2023–24), and state-level tenancy legislation for condition report requirements.

**Sample sizes** refer to the number of active rental bonds held by each jurisdiction's bond authority — the closest available proxy for the number of formal residential tenancies. These are population-level figures from government registers, not samples.

**Limitations:** Bond data reflects formalised tenancies only and excludes informal arrangements. Cross-state Australian comparisons are limited by different reporting periods, definitions, and dispute resolution frameworks. New Zealand Healthy Homes compliance data is self-reported by landlords and may overstate actual compliance — the gap between the 87% self-reported rate and the ~50% breach rate in proactive assessments suggests this directly.

---

## New Zealand: document requirements and compliance

### What the law requires

Under the [Residential Tenancies Act 1986](https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html), a New Zealand residential tenancy agreement must be in writing and include at minimum:

- Full names and contact addresses of landlord and tenant (including email and mobile if known)
- Address of the rental property
- Date the agreement is signed and the date the tenancy begins
- Address for service for both parties
- Whether the tenant is under 18
- Bond amount charged
- Rent amount and payment frequency

The landlord must provide the tenant with a signed copy before the tenancy starts. Since the [2020 amendments](https://www.tenancy.govt.nz/law-changes/), landlords must also provide a Healthy Homes Standards compliance statement with new, renewed, or varied tenancy agreements.

Section 123A of the Act requires landlords to retain: the tenancy agreement and any variations, inspection reports, and records of building work — for the duration of the tenancy and 12 months after termination.

### Bond landscape

New Zealand held **424,383 active rental bonds** at the end of 2024, up from 374,298 at the start of 2020 — a **13% increase** over four years. Source: [Tenancy Services rental bond data](https://www.tenancy.govt.nz/about-tenancy-services/data-and-statistics/rental-bond-data/).

Since December 2024, bonds must be lodged and paid online through the Tenancy Services portal. Manual lodgement via email and post is no longer available. This digitisation reduces the document-handling burden on landlords but increases the dependency on a single government system.

### Healthy Homes compliance: self-reported vs assessed

The gap between self-reported compliance and assessed compliance is the headline story for New Zealand rental documents in 2025–26:

| Metric                                                              | Figure                          | Source                                                                                |
| ------------------------------------------------------------------- | ------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Landlords reporting full compliance                                 | 87%                             | [HUD Monitoring Report Wave 4, 2024](https://www.hud.govt.nz/assets/Uploads/Documents/Healthy-Homes-Guarantee-Act-Monitoring-Topline-Report-Wave-4-March-2024.pdf) |
| Landlord awareness of the Standards                                 | 95%                             | Same report                                                                                |
| Renter awareness of the Standards                                   | 74%                             | Same report                                                                                |
| Proactive assessments finding breaches                              | ~50% of ~1,100 assessed in 2024 | [RNZ, 2025](https://www.rnz.co.nz/news/business/569098/quarter-of-all-tenant-applications-to-tenancy-tribunal-relate-to-concerns-about-healthy-homes)              |
| Tenant Tribunal applications citing Healthy Homes                   | 29% of all tenant applications  | Same RNZ source                                                                                |
| Tribunal Healthy Homes applications (2024)                          | 1,412                           | Same RNZ source                                                                                |
| Properties with Healthy Homes complaints as % of total rental stock | ~0.2% of ~600,000               | Calculated from bond count + complaint count                                                                                |

The 87% self-reported rate and the ~50% assessed-breach rate cannot both be correct. The most likely explanation is that many landlords believe they comply but have not had a formal assessment — the Standards are technically specific (minimum heater output sized to the room, insulation R-values, extraction fan specifications) and a visual check is not sufficient.

### Disputes

Over the 2020–2024 period, Tenancy Tribunal applications increased by **31%** while the active bond count grew only 13%, indicating that dispute intensity is rising faster than the rental market itself. The most common tenant-initiated applications are bond refund claims, landlord obligation breaches (including Healthy Homes), and termination disputes. Source: [Tenancy Services data and statistics](https://www.tenancy.govt.nz/about-tenancy-services/data-and-statistics/).

---

## Australia: state-level document requirements and bond outcomes

### Condition reports: the universal requirement that varies by state

Every Australian state and territory requires a condition report (called an inspection sheet in South Australia) at the start and end of a tenancy. The landlord or agent must provide two copies to the tenant before the tenancy agreement is signed, and the tenant has seven days to complete and return their annotated copy. The condition report is the primary evidence in any bond dispute at tenancy end.

Despite being universally required, the format, detail level, and enforcement of condition reports differs by state:

| Jurisdiction                 | Document name             | Legal basis                                              | Key requirement                                                                                |
| ---------------------------- | ------------------------- | -------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| New South Wales              | Condition report          | Residential Tenancies Act 2010                           | Two copies to tenant before agreement signed                                                                                |
| Victoria                     | Condition report          | Residential Tenancies Act 1997                           | Two paper copies or one electronic copy; tenant has 3 business days                                                           |
| Queensland                   | Entry condition report    | Residential Tenancies and Rooming Accommodation Act 2008 | Must include a copy of the [RTA Form 1a](https://www.rta.qld.gov.au/starting-a-tenancy/entry-condition-report)                |
| Western Australia            | Property condition report | Residential Tenancies Act 1987                           | Standard form provided by Department of Commerce                                                                              |
| South Australia              | Inspection sheet          | Residential Tenancies Act 1995                           | Prescribed form from [Consumer and Business Services](https://www.cbs.sa.gov.au/documents/tenancy/forms/Inspection_sheet.pdf) |
| Tasmania                     | Condition report          | Residential Tenancy Act 1997                             | Must be completed by both parties                                                                                |
| Australian Capital Territory | Condition report          | Residential Tenancies Act 1997                           | Must be accompanied by photographs                                                                                |
| Northern Territory           | Condition report          | Residential Tenancies Act 1999                           | Must be completed within 3 days of start of tenancy                                                                           |

### Bond outcomes: a cross-state comparison

Bond refund outcomes vary significantly across Australian states, reflecting differences in dispute resolution infrastructure, condition report practices, and regulatory culture.

| State           | Full refund rate                 | Agreed resolution rate      | Bonds held (2023–24)     |
| --------------- | -------------------------------- | --------------------------- | ------------------------ |
| New South Wales | Not separately reported          | 70.2% resolved by agreement | 968,350                  |
| Victoria        | 64% returned in full to renter   | 95% resolved by agreement   | Not separately published |
| Queensland      | 57.2% returned in full to renter | Not separately reported     | Not separately published |

Sources: [NSW Fair Trading rental bond data](https://www.nsw.gov.au/housing-and-construction/rental-forms-surveys-and-data/rental-bond-data), [VCAT rental dispute data](https://www.vcat.vic.gov.au/news/vcats-rental-dispute-backlog-has-today-reached-completion), [RentBetter bond claims analysis](https://rentbetter.com.au/article/bond-claims-and-disputes-in-australia-10-facts-landlords-should-know).

The 95% agreed-resolution rate in Victoria compared to 70.2% in New South Wales is a striking structural difference. Victoria's RTBA system is designed to facilitate agreement before any tribunal involvement; New South Wales has a different procedural flow. The difference is not primarily about landlord or tenant behaviour — it reflects different regulatory architecture.

### VCAT backlog resolution

Victoria's Civil and Administrative Tribunal accumulated a backlog of approximately 21,500 residential tenancy cases. By 30 June 2024, this had been reduced to fewer than 4,000 cases, and hearing times for bond and compensation cases dropped by 80%. Source: [VCAT backlog update](https://www.vcat.vic.gov.au/news/vcats-rental-dispute-backlog-has-today-reached-completion).

---

## Cross-market comparison: New Zealand vs Australia

| Dimension                          | New Zealand                                                                                | Australia                                                              |
| ---------------------------------- | ------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------- |
| Bond authority                     | Single national body (Tenancy Services / MBIE)                                             | State-level bodies (8 separate systems)                                |
| Active bonds (latest)              | 424,383 (end 2024)                                                                         | 968,350 in NSW alone (June 2024)                                       |
| Condition report required at start | Recommended via property inspection checklist, not legally mandated in the same form as AU | Legally mandated in every state (condition report / inspection sheet)  |
| Healthy Homes / minimum standards  | Five specific standards with measurable criteria, mandatory compliance statement           | Varies by state; no national equivalent of the Healthy Homes framework |
| Bond lodgement                     | Mandatory online lodgement since December 2024                                             | State-dependent; NSW offers Rental Bonds Online, others vary           |
| Dispute resolution                 | Single national Tenancy Tribunal                                                           | State-level tribunals (NCAT, VCAT, QCAT, etc.)                         |
| Self-reported compliance rate      | 87% for Healthy Homes (2025)                                                               | Not measured at national level                                         |
| Assessed breach rate               | ~50% in proactive inspections                                                              | Not measured at national level                                         |

The structural difference is clear: New Zealand has one national framework with one tribunal and one bond authority, making compliance monitoring (and reporting on it) straightforward. Australia's eight-jurisdiction system means that a "national" compliance picture does not exist and cross-state comparisons require careful normalisation for different reporting standards, dispute resolution timelines, and legislative frameworks.

---

## What this means for landlords

**In New Zealand:** The 87-vs-50 compliance gap for Healthy Homes is the single most actionable finding. If you believe you comply based on self-assessment, a formal assessment may reveal gaps — particularly in heating output sizing and insulation R-values, which are the most technically specific standards. The rising dispute rate (up 31% since 2020 against a 13% market increase) means that documentation quality directly affects your risk exposure at the Tribunal.

**In Australia:** The condition report is your primary defence in any bond dispute. The difference between a 57% full-refund rate (Queensland) and a 64% rate (Victoria) is partly driven by the quality and completeness of condition reports at move-in. Investing time in a thorough, photographically documented condition report at the start of the tenancy is the single highest-return documentation action a landlord can take.

**In both markets:** The trend is toward more documentation, not less. New Zealand's online-only bond lodgement, the Healthy Homes compliance statement requirement, and Australia's tightening condition report standards all point in the same direction. Landlords who systematise their document management — rather than treating it as ad hoc paperwork — will have a structural advantage in dispute resolution and compliance.


What a residential tenancy agreement must contain in New Zealand and Australia, how the two frameworks differ, which clauses are most commonly disputed at tribunals, and the 2024–2025 legislative changes landlords need to know.

New Zealand
Australia
New South Wales
Victoria
Queensland

New Zealand requires a single national tenancy agreement format with prescribed minimum content under the Residential Tenancies Act 1986 — Australia has eight separate state-level standard forms with different prescribed terms.

Healthy Homes Standards compliance statements are now mandatory in every New Zealand tenancy agreement signed, renewed, or varied — no Australian state has an equivalent pre-tenancy compliance declaration.

New South Wales abolished 'no grounds' evictions on 19 May 2025, aligning with New Zealand's 2020 removal of 'without cause' terminations — Queensland and Victoria had already restricted or removed no-grounds evictions.

Victoria requires landlords to offer at least one fee-free rent payment method (bank transfer or Centrepay) from 19 May 2025 — New Zealand's Residential Tenancies Act has always required that rent be payable by bank transfer at no cost to the tenant.

Bond disputes remain the most common tenancy tribunal matter in both countries, with condition report quality consistently identified as the single most influential factor in dispute outcomes.

ProppiAI Editorial Team, "Tenancy Agreement Anatomy 2026: New Zealand and Australia", ProppiAI, 2026-04-16.

## Methodology

This report compares the structure and required content of residential tenancy agreements in New Zealand and Australia (focusing on New South Wales, Victoria, and Queensland), using each jurisdiction's current tenancy legislation, published standard forms, and tribunal guidance.

**New Zealand sources:** [Tenancy Services — Tenancy agreements](https://www.tenancy.govt.nz/starting-a-tenancy/tenancy-agreements/), [Tenancy Services — Required statements](https://www.tenancy.govt.nz/starting-a-tenancy/tenancy-agreements/required-statements-for-tenancy-agreements/), [Residential Tenancy Agreement template](https://www.tenancy.govt.nz/assets/forms-templates/residential-tenancy-agreement.pdf), [Residential Tenancy Agreement Builder](https://rtab.tenancy.govt.nz/), [Residential Tenancies Act 1986 (as at 20 March 2025)](https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html).

**Australia sources:** [NSW Fair Trading — Residential tenancy agreements](https://www.nsw.gov.au/housing-and-construction/rules/residential-tenancy-agreements), [NSW Standard Residential Tenancy Agreement](https://www.nsw.gov.au/housing-and-construction/rental-forms-surveys-and-data/resources/standard-residential-tenancy-agreement), [Consumer Affairs Victoria — Minimum standards](https://www.consumer.vic.gov.au/housing/renting/repairs-alterations-safety-and-pets/minimum-standards/minimum-standards-for-rental-properties), [Queensland RTA](https://www.rta.qld.gov.au/starting-a-tenancy/entry-condition-report), [Tenants' Union of NSW](https://www.tenants.org.au/resource/law-change).

**Sample sizes** are the active bond counts used as proxies for formal tenancy counts: 424,383 in New Zealand (end 2024) and 968,350 in NSW (June 2024).

**Limitations:** This analysis covers legislative requirements and standard-form content — not what individual agreements actually contain in practice. No jurisdiction publishes data on what percentage of tenancy agreements include or omit specific clauses beyond the prescribed minimums.

---

## New Zealand: one national framework

### Required agreement content

The [Residential Tenancies Act 1986, section 13](https://www.legislation.govt.nz/act/public/1986/0120/latest/DLM95022.html/) requires every residential tenancy agreement to be in writing and signed by both parties. The agreement must include at minimum:

| Required element                                        | RTA section | Notes                                           |
| ------------------------------------------------------- | ----------- | ----------------------------------------------- |
| Full names and contact addresses of landlord and tenant | s 13A       | Including email and mobile if known             |
| Property address                                        | s 13A       | The physical address of the rental              |
| Date agreement signed + tenancy start date              | s 13A       | These may differ                                |
| Address for service (both parties)                      | s 13A       | Electronic address permitted from 20 March 2025 |
| Whether tenant is under 18                              | s 13A       | Affects legal capacity                          |
| Bond amount                                             | s 18        | Capped at 4 weeks' rent                         |
| Rent amount and payment frequency                       | s 13A       | Must be payable by automatic bank transfer      |
| Tenancy type (periodic or fixed-term)                   | s 13A       | If fixed-term, the end date                     |

### Required statements (post-2020)

Since the 2020 amendments, every new, renewed, or varied tenancy agreement must also include:

- **Healthy Homes Standards compliance statement** — declaring which standards the property meets and any outstanding work
- **Insurance statement** — declaring whether the landlord has insurance and what it covers
- **Body corporate rules** (if applicable) — for unit title properties

These are prescribed by the Act and cannot be omitted from the agreement. Tenancy Services publishes a [standard template](https://www.tenancy.govt.nz/assets/forms-templates/residential-tenancy-agreement.pdf) and an [online Agreement Builder](https://rtab.tenancy.govt.nz/) that incorporates all required elements.

### Standard tenant obligations (from the Tenancy Services template)

The Tenancy Services template includes standard clauses requiring tenants to:

- Pay rent on time and use the premises principally for residential purposes
- Keep the property reasonably clean and tidy
- Replace batteries in smoke alarms as required
- Not disturb neighbours or the landlord's other tenants
- Not use the property for any unlawful purpose
- Not make alterations without the landlord's written consent

### Document retention

[Section 123A](https://www.legislation.govt.nz/act/public/1986/0120/latest/DLM6895256.html) requires landlords to retain the tenancy agreement, all variations, inspection reports, and building work records for the duration of the tenancy and 12 months after termination.

---

## Australia: eight state-level frameworks

Unlike New Zealand's single national form, each Australian state and territory prescribes its own standard residential tenancy agreement with different mandatory terms, optional clauses, and supplementary forms.

### State-by-state agreement structure

| Element                        | New South Wales                                                                                | Victoria                             | Queensland                                                          |
| ------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------ | ------------------------------------------------------------------- |
| Standard form prescribed       | Yes — [NSW Fair Trading form](https://www.nsw.gov.au/housing-and-construction/rental-forms-surveys-and-data/resources/standard-residential-tenancy-agreement) | Yes — Consumer Affairs Victoria form | Yes — [RTA Form 18a](https://www.rta.qld.gov.au/starting-a-tenancy) |
| Condition report attached      | Yes — must be provided before signing                                                                                | Yes — 2 copies or 1 electronic       | Yes — Entry Condition Report (Form 1a)                              |
| Bond receipt / lodgement       | Yes — bond lodged with NSW Fair Trading                                                                                | Yes — lodged with RTBA               | Yes — lodged with RTA                                               |
| Pet clause structure           | Yes — structured process from 19 May 2025                                                                                | Yes — specific pet bond provisions   | Limited                                                             |
| Fee-free rent payment required | Yes — from 19 May 2025                                                                                | Yes — bank transfer or Centrepay     | Not mandated                                                        |
| No-grounds eviction abolished  | Yes — from 19 May 2025                                                                                | Restricted                           | Restricted                                                          |

### 2024–2025 legislative changes

The 2024–2025 period has seen the most significant changes to Australian tenancy law in a decade:

**New South Wales (19 May 2025):**

- No-grounds evictions abolished — landlords must now provide a reason for termination, aligning NSW with New Zealand's 2020 position
- Structured pet approval process — landlords can refuse only on prescribed grounds
- Fee-free rent payment — landlords must offer at least one fee-free payment option (bank transfer or Centrepay)
- Rent increases limited to once per year (from 31 October 2024)

Source: [Tenants' Union of NSW — Law change](https://www.tenants.org.au/resource/law-change).

**Victoria (ongoing):**

- Minimum rental standards checklist now required before advertising
- 2-yearly electrical and gas safety checks mandated
- Blind and curtain cord safety requirements from 1 December 2025
- Consultation on additional minimum energy efficiency standards underway

Source: [Consumer Affairs Victoria — New changes](https://www.consumer.vic.gov.au/housing/renting/new-changes-to-the-rental-laws).

**Queensland:**

- Updated Entry Condition Report requirements
- Continued RTA-mediated bond dispute process

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## Cross-market comparison: agreement anatomy

| Dimension                          | New Zealand                                   | Australia (NSW as representative)               |
| ---------------------------------- | --------------------------------------------- | ----------------------------------------------- |
| Framework                          | Single national Act (RTA 1986)                | State-level Acts (8 separate)                   |
| Standard form                      | Tenancy Services template + Agreement Builder | NSW Fair Trading standard form                  |
| Pre-tenancy compliance declaration | Yes — Healthy Homes compliance statement      | No equivalent                                   |
| Insurance disclosure               | Yes — mandatory insurance statement           | Not mandated                                    |
| Condition report                   | Recommended (property inspection checklist)   | Mandated (must be provided before signing)      |
| No-grounds eviction                | Abolished since 2020                          | Abolished in NSW from May 2025; varies by state |
| Rent increase frequency cap        | Once per 12 months, 60 days' notice           | Once per 12 months (NSW from Oct 2024)          |
| Bond cap                           | 4 weeks' rent                                 | 4 weeks' rent (most states)                     |
| Electronic service of notices      | Permitted from 20 March 2025                  | Varies by state                                 |
| Document retention period          | Duration of tenancy + 12 months               | Varies by state                                 |
| Fee-free rent payment              | Always required (bank transfer)               | NSW from May 2025; Victoria from May 2025       |

### Where the frameworks are converging

The 2024–2025 reforms show a clear convergence pattern. Both countries are moving toward:

1. **No-grounds evictions abolished** — New Zealand led in 2020; NSW followed in 2025; Victoria and Queensland have restricted or removed them
2. **Fee-free rent payment** — New Zealand has always required bank transfer; NSW and Victoria now mandate it
3. **Annual rent increase cap** — both countries now limit increases to once per 12 months
4. **Stronger pre-tenancy disclosure** — New Zealand's Healthy Homes compliance statement is the furthest along; Victoria's minimum standards checklist is the Australian equivalent

### Where they still diverge

1. **Condition reports** — Australia mandates them as a legal requirement; New Zealand recommends but does not mandate a formal condition report in the same way
2. **Safety check periodicity** — Victoria mandates 2-yearly electrical and gas checks; New Zealand has no equivalent periodic check (Healthy Homes is a one-time compliance assessment, not a recurring inspection)
3. **State fragmentation** — a landlord operating across Australian states must navigate 8 different frameworks; a New Zealand landlord faces one

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## The most commonly disputed clauses

Based on tribunal data and tenancy authority guidance from both countries, the clauses most frequently in dispute are:

1. **Bond deductions at tenancy end** — the single most common dispute in both countries. The condition report (or its absence) is the primary evidence. In New Zealand, bond disputes are the largest category of Tenancy Tribunal applications. In Australia, even with high agreement rates (95% in Victoria), the remaining 5% represent thousands of cases annually.

2. **Repair and maintenance obligations** — who is responsible for what, and what constitutes "reasonable repair" versus tenant damage. New Zealand's Healthy Homes Standards have made this more specific (measurable heating output, insulation R-values) but have also created a new category of disputes where tenants allege non-compliance.

3. **Rent increase validity** — challenges to the timing, frequency, or amount of rent increases. Both countries now cap increases at once per 12 months, but disputes persist over whether the increase is "substantially above market rent" (New Zealand) or unreasonable (various Australian states).

4. **Termination notice validity** — whether the landlord's stated ground for termination is genuine. Since both New Zealand and (from 2025) NSW abolished no-grounds evictions, the validity of the stated reason has become a new category of dispute.

---

## What this means for landlords

**Use the official template.** In New Zealand, use the [Tenancy Services Agreement Builder](https://rtab.tenancy.govt.nz/). In Australia, use the state-prescribed standard form. Custom agreements that omit prescribed terms are not just bad practice — they may be unenforceable.

**Invest in the condition report.** It is the single document that prevents the single most common dispute. Photograph everything, complete every field, and ensure the tenant returns their annotated copy within the prescribed period.

**Stay current on your state.** The 2024–2025 reforms are the most significant in a decade. If your agreement template predates May 2025 in New South Wales, it likely does not reflect the new pet, payment, and termination rules. In Victoria, the compliance checklist and safety check obligations continue to expand.

**Document retention is not optional.** New Zealand requires 12 months post-tenancy. Australian states vary. In either case, the documents you retain (or fail to retain) directly affect your position in any future dispute.