In response to a grey area uncovered in 2017, the High Court ruling has meant NSW PMs and landlords have no course of action through NCAT if the landlord is in another state.
Also if a tenant moves interstate then challenges a landlord claim over their rental bond, the matter cannot be heard through NCAT.
REINSW President Leanne Pilkington said the NSW Attorney General made the decision to wait for the High Court surrounding this issue.
“Today’s result show’s his failure to act was completely inappropriate and with the verdict delivered will continue to cause numerous problems with parties unable to have their disputes resolved by NCAT in the future.
“REINSW strongly lobbied the government to find a resolution and suggested replicating legislation in other states where the problems created by the NSW legislation does not exist,” she said.
“Amending the NCAT legislation with a similar section to that of Queensland’s would have quickly and effectively solved the problem,
“This should have been done as soon as it was identified back in February 2017 when the Court of Appeal in the Burns v Corbett case declared NCAT which handles disputes between tenants and landlords, had no jurisdiction if one or more of the parties lives in another state.
“This failure by the NSW Government to act exposes both tenants and landlords to additional issues than the original dispute.
“The NSW Government must act swiftly and effectively and make amendment to the legislation through parliament as quickly as possible,” said REINSW CEO Tim McKibben.