A legal challenge by remote residents against a new public housing rent policy in the Northern Territory has been dismissed by the Court of Appeal. The court found the policy, which bases rent on the number of bedrooms, was justifiable despite concerns about its impact on residents.
A legal challenge brought by remote residents concerning a shift in the Northern Territory government's public housing policy, which they allege led to a tripling of their rent, has been unsuccessful. The Court of Appeal determined that there was 'nothing arbitrary or capricious' about the policy, which was implemented to counterbalance the government's expenditure on providing remote public housing.
The group's legal representatives state they will consult with the tenants following a review of the judgment but emphasize that 'the fight for better housing and a fair rent system in the Northern Territory is far from over'. Remote community public housing tenants have suffered a setback in their legal dispute with the Northern Territory government over substantial rent increases, claiming hikes of up to 200 percent. Gunbalanya residents Asher Badari, Ricane Galaminda, and Lofty Nadjamerrek, along with Laramba woman Carmelena Tilmouth, initiated legal action against the NT government after it transitioned from an income-based model for calculating rents in remote communities and town camps to a new system affecting over 5,000 households. The new model, adopted by the previous Labor government in 2021 and rolled out in 2023, bases rents on the number of bedrooms in a dwelling, aiming to offset the cost of providing remote public housing. Under this scheme, rent is calculated at a fixed rate of $70 per room, with a 'safety net' available to tenants facing financial hardship, reducing their rent to 25 percent of household income. Three of the four residents involved in the case hail from the Aboriginal community of Gunbalanya in west Arnhem Land. The group argued that then-urban housing minister Kate Worden lacked lawful authority to implement the change, that adequate consultation with affected communities was absent, and that the decision was legally unreasonable. The NT Court of Appeal upheld a previous ruling that the territory government is legally obligated to provide safe drinking water in remote communities. They claimed that the blanket application of the new system disregarded each tenant's individual remoteness and unique circumstances. However, in dismissing the appeal, the court found the minister's decision to be 'plainly justifiable,' even if it 'might be legitimately criticized on policy grounds.' 'There is nothing arbitrary or capricious about the rent charged to public housing tenants bearing a relationship with the cost of providing (including maintaining) that housing, or with the adoption of the number of rooms in a dwelling as a rough measure for that cost,' the judgment states. Residents in Laramba, northwest of Alice Springs, successfully sued the government in 2019, with the Court of Appeal last year ruling that the NT was responsible for providing safe drinking water. The court also noted that maximum rents for remote public housing were 'substantially lower than those for all other classes of public housing in the territory' and that there was no legal requirement for the government to consult with residents before implementing the change. However, the appeal justices found that had consultation occurred, it would have been 'difficult to see' how input sought from Indigenous stakeholders in 2018 would have been adequate. 'Although the relevant government agency made a laudable attempt to consult with various peak Aboriginal justice, housing, land management and medical organizations, there is no evidence that any of those organizations were representing the appellants in any relevant sense,' the decision reads. The judges stated that the court could not undertake 'a merits-based review' of the policy by weighing the cost of public housing against the quality and circumstances of each dwelling, which would 'usurp' the role of the minister.
REMOTE HOUSING RENT INCREASES NORTHERN TERRITORY PUBLIC HOUSING COURT APPEAL
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