In a landmark decision, the High Court of Australia has unanimously struck down a Northern Territory public housing policy that dramatically increased rents for thousands of residents in remote Indigenous communities. The court found the former NT Labor government acted unlawfully by failing to consult tenants before implementing the changes.
A Policy That Tripled Housing Costs
The controversial Remote Rental Framework was introduced by the NT government in stages between December 2021 and February 2023. It replaced an income-based model with a flat rate based solely on the number of bedrooms in a property. This change resulted in rent increases of up to 200% for two-thirds of Aboriginal tenants living in remote NT communities.
More than 5,300 homes were affected by the policy, which the NT government argued was intended to be simpler to understand and administer. The total annual value of the increased rents was a staggering $9.7 million.
Court Finds a "Denial of Procedural Fairness"
On Wednesday, the High Court ruled that the government's actions constituted a denial of procedural fairness, as required under the Housing Act. The court's summary stated the rental determinations "took effect despite anything to the contrary contained in existing tenancy agreements" and were made "without giving notice to any tenant" or inviting submissions on the proposed changes.
"Accordingly, the making of each determination was infected with jurisdictional error," the summary concluded. The plaintiffs in the case, who launched their challenge in September 2022, were Asher Badari, Ricane Galaminda, and Lofty Nadjamerrek from Gunbalanya in West Arnhem Land, and Carmelena Tilmouth from Laramba, 230km north of Alice Springs.
Community Calls for Proper Consultation
Outside the court, solicitor Dan Kelly from Australian Lawyers for Remote Aboriginal Rights, who represented the plaintiffs, emphasised the need for proper dialogue. "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," he said.
Kelly highlighted the core legal principle upheld by the ruling: "The court has upheld this strong presumption in the common law... that our government can’t exercise power over your rights without talking to you."
This ruling follows a 2022 decision where the NT government cancelled $68 million in rental debt for remote Indigenous communities after a separate legal challenge argued housing conditions were inhumane. The NT government has not yet commented on the latest High Court decision.
