Residential Tenancies Act 1997

On application by a tenant, the ACAT must order a reduction in the rental rate payable under a residential tenancy agreement if it considers that the tenant’s use or enjoyment of the premises has diminished significantly as a result of any of the following:

the loss or diminished utility of an appliance, furniture, a facility or a service supplied by the lessor with the premises as a result of—

the withdrawal of the appliance, furniture, facility or service by the lessor; or

the failure by the lessor to maintain the premises and any appliance, furniture or facility supplied with the premises in a reasonable state of repair, having regard to their condition at the commencement of the residential tenancy agreement; or

the failure by the lessor to provide and maintain the locks or other security devices necessary to ensure that the premises are reasonably secure;

the loss of the use of all or part of the premises;

interference with the tenant’s quiet enjoyment of the premises or the tenant’s ability to use the premises in reasonable peace, comfort and privacy by the lessor or anyone claiming through the lessor or having an interest in, or title to, the premises.

To remove any doubt and for subsection (1), a tenant’s quiet enjoyment of premises is interfered with if there is substantial interference with, or a significant lessening of freedom in exercising, the tenant’s rights.

A reduction in the rental rate ordered under subsection (1)—

takes effect from the day the tenant’s use or enjoyment of the premises diminished, or the later date that the ACAT specifies; and

remains in force for the period, not longer than 12 months, specified by the ACAT.

The ACAT may order a lessor to pay to the tenant the difference between the rent paid and the rent payable as a result of an order for a rental rate reduction.

Any purported rental rate increase in relation to premises for which a reduction order is in force is void and any amount paid above and beyond the reduced rental rate in accordance with a purported increase is a debt owing by the lessor to the tenant.