Western Australia Announces Ban on No-Grounds Evictions in Major Rental Reform

The Western Australian Government announced a significant overhaul of the state's rental laws on May 4, 2026, marking the second phase of reforms to the Residential Tenancies Act. The centrepiece of the announcement is a proposed ban on 'no-grounds' evictions, a move designed to enhance security for tenants amid a historically tight rental market. These changes aim to address escalating cost-of-living pressures and align Western Australia with tenancy standards already established in most other Australian states and territories.

Under the new regulations, landlords will be required to provide a valid, prescribed reason to terminate a periodic lease or to not renew a fixed-term agreement. Valid grounds for termination will include the property owner or a direct relative requiring the premises for their own occupation, the necessity of significant renovations or demolition, or instances where a tenant has committed repeated serious breaches of the rental agreement. This shift represents a fundamental change in the relationship between property owners and occupiers in the state.

To further support households facing financial hardship, the Cook Government has extended the Rent Relief Program for an additional 12 months. The programme, which was originally launched in November 2023, will now remain active until June 30, 2027. Eligible households can access up to $5,000 in assistance to maintain their tenancies. Since its inception, the Rent Relief Program has disbursed over $18.4 million to 4,200 households. Data indicates the programme has been effective in preventing homelessness, with 90 percent of beneficiaries remaining in their tenancy six months after receiving support.

The reforms arrive at a time of extreme pressure on the Western Australian housing sector. Perth's rental vacancy rate dropped to 2.0 per cent in March 2026, continuing a downward trend from 2.2 per cent in February 2026 and 2.6 per cent in December 2025 and January 2026. This scarcity of available stock has contributed to an average rent increase of 75% in Western Australia since the beginning of the pandemic.

Public sentiment appears to favour the legislative changes. A poll commissioned by Shelter WA found that 80 per cent of the public supports a ban on no-grounds evictions. This support extends to property owners, with 72 per cent of landlords surveyed expressing approval for the measure. However, industry representatives have raised concerns regarding the potential long-term impact on rental supply. The Real Estate Institute of Western Australia (REIWA) warned that the reforms could lead to a further contraction of the market. Internal data suggests that 74 per cent of investors are considering selling their properties if no-grounds evictions are outlawed. This is particularly significant given that 86.5 per cent of the private rental supply in Western Australia is provided by individual investors.

In addition to the eviction changes, the government is introducing minimum standards for rental properties to ensure all homes meet basic health and safety requirements. Protections for tenants' personal information will also be strengthened, limiting the data that can be collected and stored by property managers and landlords. These measures follow the first phase of reforms, which commenced on March 28, 2026. That earlier phase introduced a streamlined bond release process through the Bonds Administration and the Department of Local Government, Industry Regulation and Safety (Consumer Protection). It also increased the maximum pet bond from $260 to $350, alongside provisions allowing tenants to keep pets and make minor modifications to their homes.

The Department of Local Government, Industry Regulation and Safety will oversee the implementation of these new standards. The government maintains that the reforms strike a balance between protecting the rights of tenants to a stable home and the rights of owners to manage their investments effectively. As the market continues to recover from a post-COVID investor exodus, the impact of these legislative shifts on vacancy rates and investor confidence remains a primary focus for the state's economic and social policy.