Remote renters set for windfall as High Court slams “infected” cost hikes

The High Court has overturned Northern Territory remote rent increases because they weren’t fair. Read what happened.

Territory Housing have listed this home for its renovation and maintenance program. Picture: (A) manda Parkinson

Residents of up to 5000 remote Northern Territory homes could be in line for reimbursements after the High Court of Australia on Thursday threw out government-imposed rent hikes dating back to 2021.

The High Court ordered the Territory Government to pay costs to respondents who challenged changes to remote community housing rental arrangements.

With an application for judicial review, an appeal to the NT Supreme Court and a High Court intervention, it’s estimated the Government’s costs could be in excess of half-a-million dollars.

The High Court overturned two previous NT Supreme Court determinations that backed changes to the 1982 NT Housing Act, that increased rents for remote residents, citing procedural fairness.

Describing a previous NT Supreme Court court of appeal finding against the residents as “infected with jurisdictional error” the High Court found tenants were “denied procedural fairness”.

The High Court allowed the appeal by three remote community members in Gunbalanya and another in Central Desert because of the failure by previous Housing Minister Selena Uibo “to afford procedural fairness” to the tenants.

The court found the Government did not give notice to tenants before issuing determinations that would change rental arrangements and result in residents paying more rent.

The rent changes reflected the Government’s pivot towards adopting a pricing model based upon flat rates per bedroom.

The High Court found the rental changes implemented in 2021 and again in 2023 were made without efforts to “invite tenants to furnish submissions” on the proposed changes to calculating remote rents.

Principal appellant Asher Badari and his partner Ricane Galaminda had a tenancy agreement to occupy a four-bedroom house in Gunbalanya that was impacted by the changes.

Third appellant Lofty Nadjamerrek has a two-bedroom home in Gunbalanya and fourth appellant Carmelena Tilmouth occupied a three-bedroom house in Laramba in the Central Desert.

While the government and tenants disputed rents paid and levels of rental assistance provided, it was submitted Mr Badari and Ms Galaminda paid $81 a week rent before the changes, Mr Nadjamerrek was paying $99 per week and Ms Tilmouth $140 a week.

The tenants contended the Government had introduced a ‘full rent’ rental model that increased rents “but the exact figures remained unclear”.

The Court concluded: “All tenants were affected in their own particular ways. It was, however, estimated that under the new model, revenue from rent would increase by $9.7m.”

Former Housing Minister now Opposition Leader, Ms Uibo said she respected the High Court’s decision.

The NT Government said it was reviewing legislation to “clean up Labor’s mess”.

Originally published as Remote renters set for windfall as High Court slams “infected” cost hikes