Part 5—Compensation and compliance

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208 Breach of duty notice

(1) A person to whom a duty is owed under a duty provision or that person's agent, may give a breach of duty notice to a person in breach of that duty. (2) A notice under subsection (1) must—

(a) specify the breach; and

(b) give details of the loss or damage, if any, caused by the breach; and (c) require the person, within the required time after receiving the notice—

(i) to remedy the breach if possible; and

(ii) to compensate the person to whom the duty is owed, if the breach has resulted in loss or damage to that person; and

(d) state that the person in breach must not commit a similar breach again; and

(e) state that if the notice is not complied with—

(i) an application for compensation or a compliance order may be made to the Tribunal; or

(ii) if section 91ZF or 207U (as the case requires) applies, a notice of intention to vacate may be given; or

(iii) if section 91ZP, 142ZH, 206AX or 207ZB (as the case requires) applies, a notice to vacate may be given; and

(f) be in writing; and

NoteSection 506(1)(da) provides that a document to be served on or given to a person under this Act may be served or given by electronic communication in accordance with the Electronic Transactions (Victoria) Act 2000.

(g) be addressed to the person allegedly in breach of the duty or his or her agent; and

(h) be signed by the person to whom the duty is owed or by that person's agent.

209 Application for compensation or compliance order for breach of duty

(1) If a breach of duty notice is not complied with, the person who gave it may apply to the Tribunal for a compensation order or a compliance order.

(2) Subject to section 115 of the Australian Consumer Law and Fair Trading Act 2012, the Director may make an application under this section on behalf of the person who gave the notice without that person's consent.

209AA Application for compensation or compliance order for breach of prescribed term in standard form tenancy agreement

(1) Subject to subsection (2), if a party to a fixed term tenancy agreement for more than 5 years has breached a term of the tenancy agreement, the other party may apply to the Tribunal for a compensation order or a compliance order. (2) Subsection (1) does not apply to an additional term in a fixed term tenancy agreement for more than 5 years that is included in the tenancy agreement under section 27A(1).

209AAB Application for compensation or compliance order for cost of urgent repairs

(1) A renter may apply to the Tribunal for a compensation order or a compliance order under section 212 if—

(a) the renter has arranged for urgent repairs to be conducted at rented premises in accordance with section 72(1); and (b) the renter has given written notice to the residential rental provider of—

(i) the urgent repairs; and (ii) the cost of the urgent repairs; and

(c) the residential rental provider has not reimbursed the renter for the cost of the urgent repairs within 7 days after receiving written notice referred to in paragraph (b).

(2) A resident of a rooming house may apply to the Tribunal for a compensation order or a compliance order under section 212 if—

(a) the resident has arranged for urgent repairs to be conducted at a room or a rooming house in accordance with section 129(1); and (b) the resident has given written notice to the rooming house operator of—

(i) the urgent repairs; and (ii) the cost of the urgent repairs; and

(c) the rooming house operator has not reimbursed the resident for the cost of the urgent repairs within 7 days after receiving written notice referred to in paragraph (b).

(3) A resident of a caravan park may apply to the Tribunal for a compensation order or a compliance order under section 212 if—

(a) the resident has arranged for urgent repairs to be conducted to a caravan in accordance with section 188(1) or at a site in accordance with section 188A; and (b) the resident has given written notice to the caravan owner, or the caravan park owner, as the case requires, of—

(i) the urgent repairs; and (ii) the cost of the urgent repairs; and

(c) the caravan owner or the caravan park owner, as the case requires, has not reimbursed the resident for the cost of the urgent repairs within 7 days after receiving written notice referred to in paragraph (b).

(4) A site tenant may apply to the Tribunal for a compensation order or a compliance order under section 212 if—

(a) the site tenant has arranged for urgent repairs to be conducted at a Part 4A site in accordance with section 206ZZAA(1); and (b) the site tenant has given written notice to the site owner of—

(i) the urgent repairs; and (ii) the cost of the urgent repairs; and

(c) the site owner has not reimbursed the site tenant for the cost of the urgent repairs within 7 days after receiving written notice referred to in paragraph (b).

209A Tribunal must hear application urgently

The Tribunal must hear an application under section 209 within 5 business days after the application is made if the application relates to—

(a) a breach of section 89 in relation to a right of entry for a purpose set out in section 86(1)(b); or

(ab) a breach of section 120A; or

(b) a breach of section 140 in relation to a right of entry for a purpose set out in section 137(b); or

(c) a breach of section 204 in relation to a right of entry for a purpose set out in section 201(b); or

(d) a breach of section 206ZZM in relation to a right of entry for a purpose set out in section 206ZZJ(b).

210AA Application to Tribunal for compensation order for discrimination

(1) Subject to subsection (2), the following persons may apply to the Tribunal for an order for payment of compensation—

(a) a renter, on the basis that the renter suffered loss or damage because the residential rental provider or that person's agent has contravened section 30A, 64(1B)(c) or 81; (b) a resident, on the basis that the resident suffered loss or damage because—

(i) the rooming house operator, or that person's agent, failed to comply with section 94F or 115(2); or (ii) the caravan park owner, the caravan owner, or that person's agent, has contravened section 145B or 171B;

(c) a site tenant, on the basis that the site tenant suffered loss or damage because the site owner, or that person's agent—

(i) has contravened section 206JC or 206ZMB; or (ii) has unreasonably withheld consent under section 206ZZD(2) or 206ZZE(2) on the basis of an attribute set out in section 6 of the Equal Opportunity Act 2010.

(2) A renter, a resident or a site tenant must not apply to the Tribunal under subsection (1) if the renter, resident or site tenant has already brought a dispute under Part 8 of the Equal Opportunity Act 2010 in respect of a claim or facts which could form the basis of the application under subsection (1).

210 Application to Tribunal for compensation order on other grounds

(1) A party to a residential rental agreement may apply to the Tribunal for an order for payment to the applicant by the other party to the residential rental agreement of compensation for loss or damage suffered by the applicant because—

(a) the other party failed to comply with the residential rental agreement or that party's duties under this Act relating to the residential rental agreement; or

(b) the applicant has paid to the other party more than the applicant is required to pay in accordance with this Act or the residential rental agreement.

(2) This section does not apply—

(a) to a duty under a duty provision or section 66; or (b) if a residential rental provider has given a renter a notice to vacate under section 91ZM.

210A Application to Tribunal by resident for compensation

If a rooming house operator fails to comply with section 94B, 529 or 531 in relation to a resident, the resident may apply to the Tribunal for an order under section 212(2A).

210B Application to Tribunal by site tenant or site owner for compensation

(1) A party to a site agreement may apply to the Tribunal for an order for payment to the applicant by the other party to the site agreement of compensation for loss or damage suffered by the applicant because—

(a) the other party failed to comply with the site agreement or that party's duties under this Act relating to the site agreement; or (b) the applicant has paid to the other party more than the applicant is required to pay in accordance with this Act or the site agreement.

(2) This section does not apply to a duty under a duty provision or section 206ZR.

211 Matters which may be considered by Tribunal

The Tribunal, in hearing an application under section 209, 209AAB, 210AA, 210, 210A or 210B, may take into account—

(a) whether or not the person from whom compensation is claimed has taken all reasonable steps to comply with the duties under this Act or under the residential rental agreement or site agreement in respect of which the claim is made; and

(b) in the case of a breach of a residential rental agreement, whether or not the applicant has consented to the failure to comply with the duties in respect of which the claim is made; and

(ba) in the case of a site agreement—

(i) the remaining term of the site agreement; (ii) the costs of finding an alternative Part 4A site or entering into a new site agreement; (iii) the costs for the relocation of the Part 4A dwelling, including the costs of disassembly, transport and reassembly of the Part 4A dwelling; (iv) the costs of disposing of the Part 4A dwelling; (v) any other prescribed matters; and

(bb) in the case of a breach of an applicable rooming house standard, whether the rooming house operator has been convicted of or found guilty of an offence under section 142B for the same breach; and

(c) whether or not money has been paid to or recovered by the applicant by way of compensation, including money recovered or entitled to be recovered from the bond; and (d) whether any reduction or refund of rent or other allowance has been made to the applicant; and (e) whether or not action has been taken by the applicant to mitigate the loss or damage; and (f) any offer of compensation; and

(g) if a claim is made with respect to damage to property, any action taken by the person from whom compensation is claimed to repair the damage at that person's own expense; and

(h) whether a renter who was required to give written notice under section 72AA gave that notice; and

(i) if applicable, the matters referred to in section 211A.

211A Further matters to be considered by Tribunal

(1) Subsection (2) applies in respect of an application for compensation for damage to—

(a) rented premises under a residential rental agreement; and (b) a rooming house, including a room or common areas of the rooming house; and (c) a caravan park, caravan or movable dwelling; and (d) a Part 4A park or a Part 4A site.

(2) In calculating an amount of compensation payable by a renter, a resident or a site tenant (as the case requires) on an application referred to in subsection (1), the Tribunal must take into account any depreciation of the damaged part of the property referred to in subsection (1)(a), (b), (c) or (d) by having regard to—

(a) the Uniform Capital Allowance System; or (b) any other prescribed scale.

(3) In calculating an amount of compensation payable on an application under section 210 or 210B for early termination of a residential rental agreement by the renter, or of a site agreement by the site tenant, the Tribunal must—

(a) determine advertising costs and reletting fees (if any) incurred by the residential rental provider or the site owner (as the case requires) on a basis that is proportionate to the actual cost of securing the renter or the site tenant; and

ExampleA renter has lived in rented premises under a residential rental agreement, on terms including a 12 month fixed term, rent of $500 per week and a reletting fee of $500. The renter notifies the property manager that the renter will terminate the rental agreement 6 months before the end of the fixed term. The property manager advertises the rented premises for rent immediately and finds a new renter. The advertising costs were $250. The new renter enters the premises one week after the previous renter vacates the premises. The residential rental provider's costs of advertising and reletting fees are $1000, which is the sum of one week's rent ($500), the reletting fee pro-rated for 6 months of the unexpired term of the agreement ($250) and advertising costs ($250).

(b) determine the amount of compensation for loss of rent (if any) by taking into account what loss could reasonably have been mitigated by the residential rental provider or the site owner (as the case requires) by promptly reletting the rented premises or the Part 4A site; and (c) have regard to any severe hardship the renter or the site tenant would have been expected to suffer due to an unforseen change in circumstances, if the residential rental agreement or site agreement had continued; and (d) not award any compensation for loss of future rent to the residential rental provider, or the site owner (as the case requires), if the residential rental provider or the site owner served a notice to vacate on the renter or the site tenant, unless the notice was served because the renter or the site tenant terminated or repudiated the residential rental agreement or the site agreement; and (e) determine compensation payable after a renter or a site tenant has given the residential rental provider or the site owner a notice of intention to vacate under section 91ZB, 91ZC or 207S.

NoteSection 91ZH applies to advanced payments of rent by a renter to a residential rental provider after the rented premises have been abandoned by the renter.

(4) If the Tribunal is determining an application under section 210 in respect of a claim by a residential rental provider for unpaid rent in a residential rental agreement for a fixed term of more than 5 years that has been terminated early, the Tribunal may not award an amount of compensation in excess of a maximum of one month's rent under the agreement for each 12 month period of the unexpired term of the agreement. (5) In the case of an application referred to in subsection (1)(a), the Tribunal must take into account whether a renter who was required to give written notice under section 72AA has given that notice to the residential rental provider.

211B Director's guidelines to be considered by Tribunal

The Tribunal must consider the Director's guidelines when hearing an application under section 209, 209AAB, 210, 210AA, 210A or 210B.

212 Orders of Tribunal

(1) In the case of an application under section 209, if the Tribunal is satisfied that the person was entitled to give the notice and that it was not complied with it may make any or all of the following orders—

(a) the person in breach must remedy the breach as specified in the order; (b) the person in breach must pay compensation as specified in the order; (c) the person in breach must refrain from committing a similar breach.

(1A) In the case of an application under section 209AA, if the Tribunal is satisfied that the prohibited term of the residential rental agreement was breached the Tribunal may make any or all of the following orders—

(a) the party in breach must remedy the breach as specified in the order; (b) the party in breach must pay compensation as specified in the order; (c) the party in breach must refrain from committing a similar breach.

(1B) In the case of an application under section 209AAB, if the Tribunal is satisfied that the residential rental provider has not reimbursed the renter for the cost of the urgent repairs within 7 days after receiving written notice, the Tribunal may order the residential rental provider to pay the renter for the urgent repairs as specified in the order.

(2) In the case of an application under section 210 or 210B, if the Tribunal is satisfied that compensation should be paid it may make an order directing a person to pay compensation as specified in the order.

(2A) In the case of an application under section 210A, if the Tribunal is satisfied that a rooming house operator has failed to comply with section 94B, 529 or 531—

(a) the Tribunal may make an order requiring the rooming house operator to comply with that provision; and

(b) if the Tribunal is satisfied that compensation should be paid it may make an order directing the rooming house operator to pay compensation as specified in the order.

(3) If an application is in relation to an alleged breach of house rules, caravan park rules or Part 4A park rules, in addition to the orders set out in subsection (1), or instead of those orders, the Tribunal may declare the rule to be invalid.

(4) If an order is made against a renter, resident or site tenant, the order must specify that if the order is not complied with, the renter, resident or site tenant may be given a notice to vacate the rented premises, room, site or Part 4A site.

(5) If an order for compensation is made in favour of a renter, resident or site tenant, the order may specify that the compensation be in the form of a refund or reduction of the rent or hiring charges payable by the renter, resident or site tenant.

(6) The Tribunal may order the Director not to list the making of an order under this section for compensation or compliance against a residential rental provider on the Rental Non-compliance Register if it is satisfied that, in all the circumstances, it would be unfair to list the making of the order on the Register.

213 Compensation for unpaid rent

(1) A residential rental provider is not entitled to claim compensation under this Act for a failure of a renter to pay rent under a residential rental agreement unless any amount of unpaid rent is not paid for at least 14 days after it has accrued due.

(2) Subsection (1) does not apply if the renter, on at least 2 previous occasions, has failed to pay any amount of rent under the residential rental agreement within 14 days after it has accrued due.

(3) A residential rental provider is not entitled to claim compensation under this Act for loss of rent that has not yet accrued due if the residential rental provider has issued the renter a notice to vacate under section 91ZM.

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213AA Compensation for unpaid rent under site agreement

(1) A site owner is not entitled to claim compensation under this Act for a failure of a site tenant to pay rent under a site agreement unless the rent is unpaid for at least 30 days after it has accrued due. (2) Subsection (1) does not apply if the site tenant on not less than 2 previous occasions has failed to pay the rent under the same site agreement within 30 days after it has accrued due.

213A Application for payment of rent arrears or hiring charge arrears from bond

(1) If an application for a possession order is made under Part 7 as a result of a failure by a renter, a resident or a site tenant to pay rent or, in the case of a caravan, a failure by the resident to pay a hiring charge, the applicant, at the same time, may apply to the Tribunal for payment of compensation by the renter, resident or site tenant for the unpaid rent or hiring charge owed. (2) On an application under subsection (1), the Tribunal may—

(a) make a determination of the amount of rent owing to the residential rental provider, rooming house operator, caravan park owner or site owner or, in the case of a caravan owner, the amount of hiring charge owing to the caravan owner, at the date of the application; and

(b) make a determination directing the Authority, on termination of the residential rental agreement or site agreement or when the residency right ends, to pay out an amount of bond to or on account of the residential rental provider, rooming house operator, caravan park owner, site owner or caravan owner (as the case requires) in respect of the rent or hiring charge owing.

213B Application to Tribunal for loss or damage

(1) If a possession order is made under Part 7 as a result of a failure by a renter to pay rent, an application by the residential rental provider to the Tribunal under this Part (other than under section 213A) for payment by the renter of compensation for loss or damage suffered by the residential rental provider as a result of the failure of the renter to pay rent must be made within 28 days after the renter delivers up vacant possession of the rented premises.

(2) If a possession order is made under Part 7 as a result of a failure by a site tenant to pay rent, an application by the site owner to the Tribunal under this Part for payment by the site tenant of compensation for loss or damage suffered by the site owner as a result of the failure of the site tenant to pay rent must be made within 28 days after the site tenant delivers up vacant possession of the Part 4A site.

214 Can a person recover compensation under this Part as well as from a bond?

(1) A person who has recovered compensation from a bond is not precluded from taking proceedings under this Part to recover an additional amount by way of compensation.

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214A Compensation for loss of rent under terminated site agreement

(1) If the Tribunal makes an order under section 212(2) directing a person to pay compensation to a site owner for loss or damage suffered by the site owner as a result of the termination of a site agreement under section 207D or 207H, an amount specified in the order in respect of the loss of rent that would have been payable under the site agreement, if it had not been terminated, must not exceed the lesser of—

(a) the rent that would have been payable by the site tenant under the site agreement, if the site agreement had not been terminated, for a 12 month period from the day of the termination of the site agreement; or (b) the rent that would have been payable by the site tenant under the site agreement, if the site agreement had not been terminated, for the period from the day of the termination of the site agreement until the day the Part 4A site is occupied by another site tenant or other occupant; or (c) the rent that would have been payable by the site tenant under the site agreement, if the site agreement had not been terminated, for the remaining term of the site agreement.

(2) Subsection (1) does not limit the amount the Tribunal may direct a person to pay to a site owner as compensation for any other loss or damage suffered by the site owner as a result of the early termination of the site agreement or on any other grounds.

215 What powers does a court have to award compensation?

If a party to a residential rental agreement or site agreement is convicted of an offence against this Act, the court before which that person is convicted may, on application by the other party to the residential rental agreement or site agreement (as the case requires), order the first party to pay to the applicant compensation for loss or damage suffered by the applicant because of the commission of that offence.

215A Compensation in relation to closure of caravan park or Part 4A park

(1) Subject to subsection (3), if a caravan park owner gives a notice to vacate for closure of the caravan park, the caravan park owner must apply to the Tribunal for an order determining compensation for the park closure to be paid by the caravan park owner to eligible residents. (2) Subject to subsection (3), if a site owner gives a notice to vacate for closure of the Part 4A park, the site owner must apply to the Tribunal for an order determining compensation for the park closure to be paid by the site owner to eligible site tenants. (3) A caravan park owner or a site owner is not required to apply to the Tribunal for an order determining compensation for park closure if—

(a) the caravan park owner or site owner is not the owner of the land on which the caravan park or Part 4A park is located; and (b) the closure of the park is due to the expiry of a head lease of that land.

(4) An application under subsection (1) or (2) must be made within 30 days of the service of the relevant notice to vacate. (5) If an application under subsection (1) or (2) for a park closure compensation order is not made within the time set out in subsection (4), the relevant notice to vacate is void and of no effect. (6) In this section and section 215B, notice to vacate means—

(a) in relation to a caravan park, a notice to vacate—

(i) under section 311A; or (ii) on and from the repeal of Part 6, under section 206AZA; and

(b) in relation to a Part 4A park, a notice to vacate—

(i) under section 317ZDA; or (ii) on and from the repeal of Part 6, under section 207ZE.

215B Tribunal may make park closure compensation order

(1) On an application under section 215A(1) or (2), the Tribunal may make a park closure compensation order if satisfied that—

(a) the notice to vacate has been validly given; and (b) in the case of a caravan park closure, the parties entitled to compensation are eligible residents; and (c) in the case of a Part 4A park closure, the parties entitled to compensation are eligible site tenants; and (d) the caravan park owner or site owner is the owner of the land and the closure is not due to the expiry of a head lease.

(2) In making a park closure compensation order, the Tribunal must consider whether a dwelling to which the order relates—

(a) is to be relocated by the eligible resident or eligible site tenant; or (b) is not to be, or is unable to be, relocated by the eligible resident or eligible site tenant.

(3) If a dwelling is to be relocated by an eligible resident or eligible site tenant, the Tribunal, in determining the amount of compensation payable by the caravan park owner or the site owner, is to have regard to the likely cost of the following—

(a) removing the dwelling from the site, including disconnection of services; (b) transporting the dwelling and contents to a new site; (c) installation of the dwelling at the new site (which is not to include any costs of landscaping the new site); (d) any other matter the Tribunal considers relevant.

(4) After a dwelling is relocated by an eligible resident or eligible site tenant, the owner of the dwelling may apply to the Tribunal for an order that the caravan park owner or site owner compensate the owner of the dwelling for any of the following—

(a) the cost of any repair or damage to the dwelling resulting from the relocation of the dwelling, other than damage due to the negligence of any person engaged by the owner of the dwelling to dismantle, transport or relocate that dwelling; (b) any reasonable costs that were reasonably incurred as a result of the relocation of the dwelling and its contents.

(5) On an application under subsection (4), the Tribunal may order that the caravan park owner or the site owner compensate the owner of the dwelling for any costs referred to in subsection (4). (6) If a dwelling is not to be relocated or is unable to be relocated by an eligible resident or eligible site tenant, the Tribunal, in determining the amount of compensation payable by the caravan park owner or the site owner, is to have regard to—

(a) if the eligible resident or eligible site tenant has agreed to transfer ownership of the dwelling, free of encumbrances, to the caravan park owner or the site owner (as the case requires), the loss of residency, being a reasonable amount calculated having regard to the following—

(i) the original purchase price paid for the dwelling by the eligible resident or eligible site tenant; (ii) the current on-site market value of the dwelling determined as if the closure were not to occur; (iii) the rent and any other fees for the site payable by the eligible resident or eligible site tenant; (iv) any other prescribed matter; and

(b) the likely reasonable costs of removing the contents from the dwelling and the relocation costs of the eligible resident or eligible site tenant, being a reasonable amount calculated having regard to the following—

(i) the costs of removal of the possessions of the eligible resident or eligible site tenant; (ii) the likely inconvenience to the eligible resident or eligible site tenant due to having to arrange alternative residential accommodation; (iii) the length of time the eligible resident or eligible site tenant has occupied the site; (iv) any other matter the Tribunal considers relevant.

(7) A park closure compensation order must specify the date by which the compensation under the order is to be paid to the eligible resident or eligible site tenant (as the case requires) which must not be less than 30 days before the end of the notice period specified in the relevant notice to vacate. (8) If a park closure compensation order is made in relation to the relocation of a dwelling and the eligible resident or eligible site tenant (as the case requires) relocates the dwelling before the caravan park owner or the site owner pays the compensation payable under the order, the caravan park owner or the site owner, as the case requires, remains liable to pay the compensation under the order.

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