Changes to the Residential Tenancies Legislation

For some years Primary Employers Tasmania, together with TasFarmers and Fruit Growers Tasmania, has been lobbying the State Government to exclude farmhouses from the Residential Tenancies Act so that the restrictions on having employees vacate the premises after the end of their employment doesn’t cause delays. This is the case in Victoria and New South Wales where the legislation has no application to farmhouses at all. 

The Government is amending the Residential Tenancy Regulations this week to exempt farmhouses from those parts of the legislation that require substantial notice periods to be given to employees to vacate the premises after their employment ends.

What this means is that when an employee is provided with accommodation on the farm the employer can agree with the employee as to a reasonable time to vacate the farm after the end of the employment.

When drafting accommodation agreements for our members we usually ask the employer to consider how long it will actually take an employee to leave, taking into account whether there is furniture, children, etc.

It should be noted, however, that the Residential Tenancies Act only applies to accommodation where there is a payment for the accommodation. More and more we are preparing accommodation agreements without a charge (rent free) as it is often required to attract employees.

However, members need to be aware that in some areas where commercial rent is not charged for accommodation the employer may be subject to paying Fringe Benefits Tax on the difference between what is charged and the rental value of the property. Members should get advice from their accountants in this regard.