A public housing policy in the Northern Territory that dramatically increased rent for remote Indigenous communities has been declared unlawful by the High Court of Australia. The decision comes after a three-year legal challenge by residents from two remote communities.
The Remote Rental Framework: A Controversial Policy
The Remote Rental Framework was introduced by the NT government between December 2021 and February 2023. This policy replaced previous rental agreements with a flat rate based on the number of bedrooms in a home, leading to rent increases of up to 200% for two-thirds of Aboriginal tenants in remote NT communities. More than 5,300 homes were affected by these changes.
High Court's Unanimous Ruling
On Wednesday, the High Court ruled unanimously that the former NT Labor government failed to provide procedural fairness to tenants as required under the Housing Act. The court found that the rental changes were implemented without giving notice to tenants or allowing them to make submissions regarding the proposed rent increases.
A summary of the judgment stated: "The rental changes took effect despite anything to the contrary contained in existing tenancy agreements and were made without giving notice to any tenant or inviting any tenant to make submissions regarding the proposed change of rent."
The court concluded that "the making of each determination was infected with jurisdictional error," making it unnecessary to address whether the determinations were legally unreasonable.
The Plaintiffs and Their Legal Battle
The case was brought by plaintiffs Asher Badari, Ricane Galaminda, and Lofty Nadjamerrek from Gunbalanya in West Arnhem Land, along with Carmelena Tilmouth from Laramba, 230km north of Alice Springs. They first challenged the territory government in September 2022.
Outside court, solicitor Dan Kelly from Australian Lawyers for Remote Aboriginal Rights, who represented the plaintiffs, emphasized the importance of consultation: "The Northern Territory government has to go back and it has to speak to tenants – and they have to speak to communities – and work out what a fair and appropriate rent system looks like."
Kelly highlighted that the increased rents totaled $9.7 million annually, representing a significant financial burden on already vulnerable communities.
Government Response and Historical Context
NT Housing, Local Government and Community Development Minister Steve Edgington acknowledged the High Court decision, stating that "all public housing tenants, remote and urban" are still required to pay rent. The government is now "considering options" to ensure a valid rental framework is in place for remote tenants.
This isn't the first time the NT government has faced legal challenges over remote housing policies. In 2022, the government cancelled $68 million in rental debt for remote Indigenous communities after another community-led legal challenge argued that housing conditions were "inhumane."
The High Court's decision reinforces the principle that governments cannot exercise power over citizens' rights without proper consultation, upholding what Kelly described as "an ancient protection for all citizens."
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