The Minns Labor Government is strengthening protections for more than 2.3 million renters across NSW, with tough new laws to protect their personal information and stop misleading rental ads created using AI.
The reforms in the Residential Tenancies (Protection of Personal Information) Amendment Bill 2025, passed by the NSW Parliament last night, will stop the unnecessary collection of personal information by landlords and agents to reduce the risk of identity theft and data breaches and create a fairer, more consistent application process for renters.
The Government will require landlords and agents to disclose when property images in rental advertisements have been digitally altered or AI-generated to hide faults which can mislead prospective tenants, such as fake furniture that hides structural damage or misrepresents room proportions.
Under the new rules, all agents and landlords will be required to use a standardised rental application form which will make clear what information is required and what is off-limits, with renters no longer allowed to be asked for unnecessary details such as personal photos, social media accounts, details about their children or even their tattoos. There will also be clear rules around how personal data must be stored and destroyed.
ID documents like driver licences and passports will now only be collected from the preferred applicant before signing the lease, significantly reducing the estimated 187,000 pieces of ID collected from all rental applicants every year.
With cost-of-living front of mind for many renters, the changes also make it mandatory for agents to disclose if a property is connected to an embedded utility network, such as a private electricity or gas system, allowing tenants to know upfront if they're locked into a single energy provider so there are no surprises on their bills.
Penalties for breaches are significant - up to $11,000 for individuals and $49,500 for corporations for privacy violations - while businesses who fail to disclose altered photographs face penalties of up to $22,000.
The Government has started consultation with stakeholders to finalise the standard application form and the types of documents that can be collected to assess rental applications, including defining when those documents need to be destroyed.
The new laws are expected to come into effect in early 2027.
Reforms protecting renters' privacy are one of the key changes the Government has made to make renting fairer. The Government has:
- Banned no-grounds evictions.
- Limited rent increases to once a year.
- Ensured renters have fee-free ways to pay rent.
- Banned fees for background checks.
- Made it easier to have pets in rentals.
- Launched Smart Rental Bonds statewide, saving every renter in NSW thousands of dollars by allowing them to digitally transfer their bond between properties.
More information for tenants, landlords and agents on renting is available here: https://www.fairtrading.nsw.gov.au/housing-and-property/renting
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"Making renting fairer is a clear Government priority - and these new laws mean NSW has some of the strongest renter privacy protections in the country.
"This is a strong step forward to protect renters from false information in the rental market and is an important part of the Minns Labor Government's commitment to supporting the ethical use of AI across the state.
"These laws put an end to the practise of excessive and intrusive data collection in the rental process and make it fairer for renters and less stressful for landlords and agents. Whether you have a tattoo, or what school your kids go to, is not relevant to whether you'll be a good tenant.
"They build on the Government's landmark suite of rental protections that have banned no-grounds evictions, limited rent increases to once a year and mandated fee-free ways to pay rent.
"The Liberals failed to act at every turn to protect renters' rights and privacy for over a decade. They're continuing to send a clear message to renters: they don't care about you."
