Can DV Justify a New Lease and Shift Arrears Liability?
PBG v South East Housing Co-Operative [2025] VCAT 706
Decision date: 7 August 2025
In this case, VCAT was asked to decide whether a renter affected by family violence could end a joint rental agreement, have a new one created in her name only, and shift all rent arrears to the other renter.
Full case: https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VCAT/2025/706.html
The Background
PBG and KKF had rented a community housing property managed by South East Housing Co-Operative since 2018.
In April 2025, PBG obtained a Family Violence Interim Intervention Order (FVIIO) protecting her and her two children from KKF. Soon after, she applied to VCAT seeking:
Termination of the existing joint rental agreement,
An order requiring the rental provider to enter a new agreement with her alone, and
A declaration that KKF was 100% liable for $8,620 in arrears.
By the time of the hearing, PBG and her children were living with her mother while KKF remained in the property.
The Arguments
The Renter (PBG):
Claimed she and her children would face severe hardship and potential homelessness if she couldn’t secure a new lease in her sole name.
Asked that KKF be made fully liable for the arrears.
Gave oral evidence that she was willing to negotiate a payment plan if given another chance.
The Rental Provider:
Did not oppose ending the current lease but strongly opposed granting a new one to PBG.
Pointed to over $9,400 in arrears, false household declarations leading to $33,000 in underpaid rent, and repeated breaches (missed inspections, poor communication and abusive behaviour).
Argued the co-operative’s resources were meant for low-income renters committed to honesty and responsibility, and PBG’s record undermined those values.
The Tribunal’s Findings
Member Bartlett found that:
The FVIIO did not exclude either renter from the property; KKF remained living there voluntarily.
PBG’s claims of hardship were unsupported by documentary evidence.
The community housing provider would face greater hardship by being forced to grant a new lease to someone with a poor compliance record and substantial arrears.
Since the section 91W(1A) application failed, her request under section 91X to shift arrears liability also had to fail.
The Outcome
VCAT dismissed PBG’s application. No new lease was ordered, and the arrears liability was not reallocated.
Key Takeaway for Property Managers
When family violence is involved, renters may apply to end agreements and seek new ones in their sole name. But VCAT will carefully weigh hardship on both sides. Without strong evidence of hardship and a proven ability to comply with rental obligations, the Tribunal may refuse to compel a rental provider—especially a community housing co-operative—to enter a new agreement.
