Market factors and policy objectives continue to place an emphasis on shortfalls in student housing supply. Recent regulatory reform and planning policy initiatives are responding nationally in a fragmented manner. These changes have implications for project parameters, compliance and strategic planning.

Student housing market outlook: confidence and certainty 

In 2024, the industry was grappling with the proposed amendments to the Education Services for Overseas Students Act 2000 (Cth) for the introduction of international student enrolment limits for each higher education provider.  When these amendments did not proceed, the Commonwealth Government instead adopted the existing international student visa framework to allocate enrolment limits for each provider in 2025. It has now been confirmed that this system will continue in 2026, with an upwards revision of the total international student caps for 2026. 

From next year, the international education sector will be allowed to grow by 25,000 additional places compared with 2025, and all providers will receive at least their current allocation of students, with the National Planning Level for 2026 set at 295,000 international places. 

This increase and policy certainty has improved investor confidence and is helping to attract institutional capital back to the sector.

The Commonwealth Government has recently confirmed that public universities will be able to push for higher individual allocations by demonstrating increased engagement with Southeast Asia, or by providing additional student accommodation. 

Supply of student accommodation is steadily increasing, with Urbis and the Property Council of Australia's Student Accommodation Council publishing estimates showing that purpose-built student accommodation (PBSA) supply is set to reach 144,300 beds by 2027.

Planning and policy reform for PBSA: balancing consistency vs flexibility

Across jurisdictions, some State governments and planning authorities are reviewing the suitability of their planning frameworks for PBSA developments. 

• In Western Australia, the State planning authority has recently published a draft Position Statement on PBSA, for industry consultation. The Position Statement set out some broad objectives and assessment criteria for PBSA approvals. Submissions closed on 11 September 2025. If adopted without amendment, this statement will encourage local governments to adopt a consistent set of planning criteria for PBSA developments, with a view to providing clarity and guidance for applicants. 
• South Australia has recently amended the definition of 'student accommodation' in its Planning and Design Code (SA).  The Code's previous definition of ancillary accommodation and student accommodation excluded accommodation that included self-contained dwellings. This restriction has now been removed, so that these accommodation types can include self-contained dwellings (meaning they can now include their own kitchen, bathroom and laundry facilities). This modernises the definition and removes some of the constraints that created difficulties for previous housing projects in SA. 
• Queensland introduced amendments to the Planning Regulation 2017 (QLD) in 2022, to make it easier to establish small-scale student housing as "rooming accommodation" for buildings with no more than 5 bedrooms, without full development applications for a change of use in low-density residential zones, if certain criteria are met. 
• Some States, such as WA, Queensland and Victoria, have also introduced fast-tracked planning approval processes for certain priority projects, which could include larger PBSA.

We recommend that counsel seek specialist planning advice in relation to the extent or effect of any planning reform in your State or Territory. 

Tenancy law changes impacting student accommodation

Recent amendments to residential tenancies legislation across several states have introduced new obligations for landlords and expanded rights for tenants. Some of these reforms include provisions relevant to student accommodation.

Recent reforms

The reforms introduced in most States have included limits on rent increases and in Victoria, New South Wales, South Australia and the Australian Capital Territory have included new prohibitions for "no grounds" evictions for fixed-term tenancies. 

In Victoria, South Australia, New South Wales and Queensland, one of the specific, permitted grounds for terminating a tenancy applies specifically to student accommodation tenancies, to provide for termination where a student is no longer enrolled as a student or eligible for PBSA.

Exemptions for accommodation provided by educational institutions

In most States and Territories, some types of student accommodation are excluded from the operation of the applicable residential tenancy legislation, particularly where they are provided by an education institution. For example: 

• in New South Wales, residential premises used as a residential college or hall of residence for students, and are located within an educational institution or building owned by an educational institution, or are provided by an operator who has a contractual arrangement with an education institution to provide student accommodation, are generally exempt from the operation of the Residential Tenancy Act 2010 (NSW);
• in Victoria, a similar statutory exclusion applies to student accommodation that is located within an educational institution, or is otherwise ancillary to and owned or leased by the educational institution or owned or leased by an accommodation provider who is formally affiliated with an educational institution. A formal affiliation must be documented under contractual arrangements that meet prescribed criteria set out in the Residential Tenancies Regulation 2019 (VIC); 
• in South Australia, the statutory exclusion is narrower in comparison to some other states. The Residential Tenancies Act 1995 (SA) does not apply to tenancy agreements for premises within educational institutions or colleges, but applies to accommodation located outside of an educational institution or college;
• in Western Australia, the similar statutory exclusion applies to accommodation provided by an educational institution for students, or by an entity other than the educational institution if the accommodation is provided other than for the purpose of making a profit; and
• Queensland's Residential Tenancies and Rooming Accommodation Act 2008 (Qld) contains separate exemptions for student accommodation provided for school students and for higher education students.  For student accommodation provided to higher education students, the exemption is narrower in comparison to most other States, as it only applies to accommodation that is located on campus and provided by either the higher education provider or by a third party operating the accommodation on a not-for-profit basis.  Therefore, the Queensland legislation will apply generally to off-campus PBSA facilities, unless other statutory exemptions are applicable.   

The scope and wording of these exclusions vary from State to State and in some cases, have also been revised as part of recent reforms. It is important for educational institutions and PBSA partners to be cognisant of when, or if, their facilities are subject to residential tenancy regulations, and the new obligations and restrictions that apply under those regulations. 

South Australia: targeted PBSA provisions 

Effective on and from 1 September 2025, South Australia's Residential Tenancies Regulations 2025 (SA) also now include a new definition for 'purpose-built student accommodation', which means a "private provider of off-campus, fit-for-purpose accommodation with communal areas and facilities that is developed and managed exclusively for students enrolled to study at an educational institution". This South Australian amendment is similar to (but is not the same) as the definition in the NSW legislation. 

The South Australian Regulations now also give PBSA providers a new and specific ground to terminate fixed-term tenancies where a student fails to renew or otherwise fails to respond to a renewal offer within 30 days.

This means that, from a practical point of view, PBSA operators in South Australia will need to issue notices of renewal to students 90 days prior to the expiry of the fixed term - giving the student 30 days to respond, and then upon the student's failure to renew or respond, the operator can terminate the tenancy agreement with 60 days' notice.

This reform reflects the cyclical nature of student occupancy and provides operational certainty for PBSA providers. Operators will need to ensure that they have appropriate processes in place to give the required notices within the statutory timeframes.

Other Federal regulations affecting PBSA and tenancy agreements

Application of unfair contract terms rules

Recent reforms to Australia’s unfair contract terms (UCT) regime, including the associated increase in applicable penalties, have been effective since November 2023. These reforms have placed a renewed focus on the fairness of standard form contracts terms used by businesses and institutions in Australia. Legal counsel should assess whether standard tenancy agreements templates used by the university or its affiliated PBSA providers could be deemed ‘standard form’ contracts and whether those agreements have been recently reviewed to determine if any terms could contravene the revised Australian Consumer Law. Particular attention should be paid to clauses relating to rent reviews, termination rights and liability limitations, especially in the context of vulnerable student cohorts and in circumstances where legislated forms of residential tenancy agreements are not used.

Opportunities for affordable housing and mixed-use potential

While PBSA is not the primary focus of federal housing initiatives such as the Housing Australia Future Fund, opportunities may arise through mixed-use developments or partnerships with community housing providers. Universities may find strategic alignment by integrating student accommodation into broader affordability and urban renewal objectives.

Strategic considerations for university legal teams

In summary, in-house counsel should remain attuned to:

• Jurisdictional compliance: Ensure projects reflect the applicable legislative and planning context, and that tenancy agreements are reviewed to ensure compliance with relevant regulations. 
• Planning scheme engagement: Early involvement in planning processes can mitigate risk and support strategic alignment. There may also be opportunities in some States to engage with regulators to review planning policy, to highlight any existing obstacles to increasing supply, or to modernise frameworks to respond to the expectations of today's student cohorts. 
• Governance of partnerships: Joint ventures and leasing arrangements with private PBSA providers require clear delineation of operational control, dispute resolution and reputational risk, and ensure ongoing compliance with residential tenancy provisions where applicable.
• Monitoring reform: Legislative changes in tenancy law, housing policy and planning controls should be tracked to anticipate future impacts, including to identify where this impacts an educational institution's own assets or arrangements. Further consideration may be required, if the impact of reform is not clear.

As the PBSA sector matures, universities are uniquely positioned to shape the next generation of student living environments. Legal counsel will play a critical role in ensuring these developments are not only compliant and commercially sound but also aligned with institutional values and the evolving expectations of students.