Hamilton & Anor v Zhang; Zhang v Hamilton & Anor (Appeal)

The appeal was heard by the ACT Civil and Administrative Tribunal (ACAT) in two matters, AA 35/2021 and AA 3/2022. The appellants, Mr and Mrs Hamilton, sought to appeal an order that they pay their landlord, Mr Zhang, rental arrears and compensation for damage to the premises. The primary issue was whether the rent increase made by Mr Zhang on 20 September 2020 was lawful and whether the ACAT had jurisdiction to make the compensation order. Another issue was whether the ACAT had jurisdiction to make an order for the distribution of rental bonds.

The ACAT held that the rent increase made by Mr Zhang was lawful as it occurred after the tenants had declined the offer to renew their fixed term agreement and entered into a periodic tenancy. The court held that there was no evidence that the tenants were a COVID-19 impacted household or that the rental increase was inconsistent with the emergency response declarations. The ACAT held that it had jurisdiction to make the compensation order as it was a matter arising out of the residential tenancy agreement. However, the ACAT held that it did not have jurisdiction to make an order for the distribution of rental bonds as it was a matter that fell outside the scope of the residential tenancy agreement.

The appeal was allowed in part, and the ACAT set aside the order for compensation for damage to the timber floors of the subject premises and dismissed the application for compensation. The ACAT amended the order for payment of rental arrears so that the tenants must pay $105.93 to the lessor by way of rental arrears for the period from 8 June 2020 to 7 January 2021. The ACAT also amended the order of 15 March 2022 so that the Office of Rental Bonds be directed to pay $846.15 of the bond to the lessor and the remainder to the tenants.