Australia’s rental vacancy rate has dropped to 1.3% as of March 2026, according to SQM Research. That means for every 100 rental properties, fewer than two are sitting empty. For tenants, it means finding a place that fits both your budget and your preferred lease length has become a real challenge. For landlords, it means high demand — but the rules around how long you can keep a tenant and how much you can raise the rent are shifting faster than most people realise.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Those four numbers explain why lease duration has become a hot topic. When supply is this tight and rents are climbing this fast, the length of your lease — and whether you can renew it on fair terms — matters more than ever. State governments across the country have been rewriting tenancy laws in response, and the result is a patchwork of rules that vary depending on where you live. Here’s what you actually need to know.
One term you’ll see a lot in this conversation is no-grounds eviction. That’s when a landlord ends a tenancy without giving a specific reason — they just don’t renew the lease. In the past, this was legal in most of Australia. That’s changing.
What I tend to notice is that most tenants still assume a 12-month lease is the only option, and most landlords assume they can still end a tenancy whenever they want. Both assumptions are wrong in more places than you’d think. The rules around eviction and lease termination now depend heavily on which state you’re in.
The Real Cost of Renting in a Tight Market
The headline rent figure is only part of the story. With the national vacancy rate at 1.3%, tenants are facing higher upfront costs just to secure a lease. Bonds, moving expenses, and application fees add up fast. The Commonwealth Rent Assistance increase that took effect on 20 March 2026 helps — maximum fortnightly rates for a single person went from $184.60 to $212.40 — but that only applies to the roughly 1.3 million Australians already receiving qualifying Centrelink payments.
For everyone else, the full cost picture includes:
- Rental bond — typically 4 to 6 weeks’ rent, often $2,000–$4,000 upfront
- Moving costs — removalists, truck hire, packing materials
- Connection fees — utilities, internet, contents insurance
- Lease break costs — if you need to leave early, you may owe rent until a new tenant is found
Portable bonds address one of the biggest cash flow problems. In NSW, about 330,000 households move each year, and most tenancies last less than 2 years. Under the new Smart Rental Bonds system launching mid-2026, tenants pay a $25 fee to transfer their bond rather than handing over thousands of dollars each time they move. That’s a real shift in how the upfront cost of renting works.
What this means in practice: a tenant in the ACT has much more predictable housing costs than someone in Western Australia, where rent increases are still allowed every 6 months with no cap on the amount. The difference in lease duration flexibility between states isn’t just about how long you can stay — it’s about whether you can afford to stay.
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| State | No-grounds eviction ban? | Rent increase limit | Portable bond scheme? |
|---|---|---|---|
| NSW | Yes (from May 2025) | Once per 12 months | Yes (mid-2026, $25 fee) |
| Victoria | Yes | Once per 12 months | Not yet |
| Queensland | Yes | Once per 12 months | Pilot in SE QLD |
| ACT | Yes (since 2023) | CPI + 10%, once per 12 months | Not yet |
| WA | No (under review) | Once per 6 months | No |
| SA | Under review | Once per 12 months | No |
Where Tenants and Landlords Get Lease Duration Wrong
Assuming a 12-month lease is the only option
Most tenants default to a 12-month lease because that’s what agents offer first. But furnished medium-term rentals — typically 3 to 6 months — are becoming more common, especially in cities where job relocations, contract work, and family transitions are frequent. These sit between hotels and traditional leases, giving tenants a real home without locking them in for a full year. For someone waiting on a property settlement or between jobs, a shorter lease can be a smarter move. The trade-off is that furnished rentals often cost more per week, so you pay for flexibility.
Thinking rent increases are unlimited everywhere
This is the mistake I see most often from both sides. Tenants accept a rent increase without checking whether it’s legal in their state. Landlords assume they can raise the rent by whatever amount they like. In the ACT, increases are capped at CPI plus 10%. In NSW, Victoria, Queensland, and Tasmania, increases are limited to once every 12 months. In WA, it’s still every 6 months. The difference matters — a tenant in Perth could face two rent hikes in the time a tenant in Sydney faces one. If you’re unsure about your situation, getting advice from a qualified professional who understands landlord-tenant law can save you from overpaying.
Landlords assuming they can evict without reason in all states
This is the most financially consequential mistake. In NSW, no-grounds evictions have been banned since 19 May 2025. Victoria, Queensland, and the ACT have similar bans. A landlord who tries to end a tenancy without a valid reason — sale, major renovation, family moving in — can face delays, legal costs, and penalties. In WA, no-grounds evictions are still permitted, but a draft bill is under review. The gap between states means a landlord who owns properties in both NSW and WA needs two completely different strategies for ending a tenancy.
Not documenting the condition of the property
Bond disputes are one of the most common sources of friction at the end of a lease. With portable bonds becoming more common, the stakes are higher — if a bond is transferred rather than refunded, any claim needs to be resolved before the transfer goes through. Tenants who don’t take dated photos at move-in and keep records of repairs often lose money they shouldn’t. Landlords who don’t conduct proper ingoing inspections struggle to prove damage. The process is straightforward: take photos, note every existing mark or fault, and submit the condition report within the required timeframe. In Queensland, the reforms now require pre-tenancy inspection documentation as part of minimum housing standards.
How Lease Duration Flexibility Works Across Australia
New South Wales: Portable bonds and the no-grounds ban
NSW has moved further and faster than most states. The no-grounds eviction ban took effect on 19 May 2025. Rent increases are limited to once per 12 months with 60 days’ notice. Rent bidding has been banned since December 2025. The big addition for 2026 is the Smart Rental Bonds system — a portable digital bond with a $25 fee that lets tenants transfer their bond between properties. With about 330,000 households moving each year in NSW alone, this addresses a real cash flow problem. The NSW Rental Commissioner has also proposed a statewide portable bond scheme and a review of rental blacklists, with public submissions closing on 15 March 2026.
Victoria and the ACT: The strictest protections
Victoria has some of the strongest tenant protections in the country. No-fault evictions are banned, landlords must provide evidence for termination (sale, major renovations, family moving in), and the minimum notice for most terminations is 90 days — up from 60. Rent increases are limited to once per 12 months, and rent bidding is banned. Victoria also enforces 14 minimum housing standards covering heating, hot water, structural soundness, and ventilation, with penalties up to $11,082 for non-compliance. A new fast-track dispute resolution process through VCAT aims for 14-day resolution. The ACT goes further on rent control — increases are capped at CPI plus 10%, and landlords must give at least 8 weeks’ written notice. If CPI doesn’t change, the landlord cannot increase rent at all.
Queensland: A middle ground with growing tenant rights
Queensland’s reforms came through the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024, rolled out in three tranches between June 2024 and May 2025. No-grounds evictions ended, rent increases are limited to once per 12 months, and tenants can challenge excessive increases through QCAT. Tenants can make cosmetic changes with landlord consent that cannot be unreasonably withheld. A portable bond pilot is running in South East Queensland. Minimum housing standards cover safety, weatherproofing, fixtures, and structural soundness. For tenants, Queensland offers a solid middle ground — better protections than WA or SA, but not as strict as Victoria or the ACT.
Western Australia and the less-regulated states
WA remains the most landlord-friendly of the major states. No-grounds evictions are still permitted, though a draft bill has been released for consultation. Rent increases are allowed every 6 months — the most frequent of any state. Minimum standards exist but are less comprehensive than elsewhere. South Australia has rent increases limited to once per 12 months with 60 days’ notice, but no-grounds evictions are still under review. Tasmania has restricted no-reason evictions and limits rent increases to once per 12 months, with minimum standards introduced in 2024. The Northern Territory remains the least regulated, with fewer restrictions on evictions and rent increases. For landlords, these states offer more flexibility. For tenants, the trade-off is less security.
The push for a national two-year default lease
In August 2026, the ACTU proposed making a two-year lease the national default standard. Under the plan, landlords would be required to offer at least two years of housing security, while renters could still choose shorter leases if they preferred. The proposal also includes stronger protections against unfair evictions and rent gouging, and calls for 1 in 10 new homes to be public housing — up from the current 1 in 50. National Cabinet would need to update the 2023 ‘A Better Deal for Renters’ agreement to make this happen. It’s not law yet, but it signals where the conversation is heading. For anyone signing a lease in 2026, it’s worth watching how this develops.
Frequently Asked Questions About Lease Duration in Australia
Can my landlord increase rent multiple times per year? ▾
What is a portable bond and how does it work? ▾
What happens if my landlord tries to evict me without a reason? ▾
Can I keep a pet in a rental property? ▾
How do I apply for Commonwealth Rent Assistance? ▾
Can I break a lease early if I lose my job? ▾
What the Push for Longer Leases Means for Renters and Investors
The direction is clear: Australian rental laws are moving toward longer, more secure tenancies. The ACTU’s proposal for a national two-year default lease, the spread of portable bond schemes, and the near-total ban on no-grounds evictions in the eastern states all point in the same direction. For tenants, that means more stability and fewer forced moves. For landlords, it means less flexibility to reclaim a property quickly — but also lower turnover costs and more predictable income. The gap between states will probably narrow over the next few years, but for now, where you live determines what you can expect from a lease.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Bond Recovery in Australia: Ensuring You Get Your Money Back.
Sources and Further Reading
Negotiating Rent in Australia: Master the Art of Getting a Better Deal — Practical strategies for discussing rent reductions or freezes with your landlord, including timing and documentation tips.
Understanding Rental Arrears Notices in Australia — What happens when rent goes unpaid, the notice periods involved, and how to respond before it escalates.
Arrivau (2026). Australian Rental Reforms 2026-27. 🔗
WealthWorks (2026). New Rental Reforms & Tenant Protections Australia 2026 Guide. 🔗
Australian Council of Trade Unions (2026). Unions Push for National Two-Year Rental Standard. 🔗
EzyFlats (2026). Furnished Rentals in 2026: Why More Renters Are Choosing Flexibility Over a 12-Month Lease. 🔗
