The Landlord and Tenant (Amendment) Act 1948 (NSW) (LTA Act) will be repealed on July 1, according to a report by the Real Estate Institute of New South Wales (REINSW).

The move forms part of the NSW government’s Better Business Reforms package, which aims to create opportunities for small business by cutting red tape, costs and complexity without reducing consumer protections, and giving consumers the information they need to make appropriate decisions about their future.

The announcement regarding the LTA Act relates to rent-controlled properties only, and relevant savings provisions from the LTA Act will be inserted into Schedule 2 of the Residential Tenancies Act 2010 (NSW).

The LTA Act was originally introduced to provide post-war housing, allowing rent control and security of tenure for tenants, particularly servicemen and their families.

What will be the changes?

As part of the amendment, existing tenants and their spouses will remain protected. However, succession rights for dependent children will be axed.

The protection afforded by the LTA Act will continue to apply as if it had not been repealed until the relevant tenant passes away, according to The NSW government. In addition, a spouse or de facto partner is covered if they lived with the tenant immediately before the death.

“As a supporter – in principle – of measures to simplify, repeal and reform existing legislation, REINSW did not oppose the repeal of the LTA Act,” said REINSW CEO Tim McKibbin. “We maintain the view that there is no merit in upholding the current LTA Act, but recognise the need for the NSW government to deal fairly and immediately with the protected individuals affected by the repeal.”

McKibbin said that before the LTA Act is repealed, the NSW government should not only take note of the number of properties protected under the LTA Act but also be prepared to offer re-housing for dependent children living in the protected properties following the death of the tenant or their partner.

“The government must be conscious of the fact that some of the affected individuals depend on protected rent in order to survive – being unlikely to be able to afford the rent charged by private landlords,” he said.