NSW rental applications face privacy limits and new rules for altered images

NSW renters will no longer be routinely asked to hand over broad collections of personal information when applying for a home under legislation passed by state parliament on Thursday night.

The Residential Tenancies Amendment (Protection of Personal Information) Bill introduces a standard rental application form, limits when identity documents can be collected and requires clearer handling of applicant data.

The legislation also targets misleading rental advertisements. Landlords and agents will have to disclose digitally generated or altered images where the changes would be reasonably likely to mislead prospective tenants.

The NSW Government announced the bill’s passage on Friday, but said the reforms were expected to commence in early 2027. Consultation is underway on the application form, acceptable supporting documents and when collected information must be destroyed.

Less information from unsuccessful applicants

Every landlord and agent will have to use the prescribed application form once the new system starts. The government says applicants will not be asked for unnecessary details such as personal photographs, social media accounts, information about their children or tattoos.

Documents such as passports and driver licences will generally be collected only from the preferred applicant before the tenancy agreement is signed. Other people competing for the property should therefore not need to leave copies of high-value identity documents with an agency or application platform.

The government estimates about 187,000 pieces of identification are currently collected from rental applicants each year. Restricting collection does not remove an agent’s ability to check whether a successful applicant can pay the rent or is likely to care for the property. Instead, it is intended to reduce the amount of sensitive information stored for people who never receive the tenancy.

Storage and destruction rules will also be developed. That matters because rental applications can contain addresses, employment records, income information and identity documents that may be useful for fraud if exposed in a data breach.

Privacy breaches under the new regime could attract penalties of up to $11,000 for individuals and $49,500 for corporations.

Altered listing photographs must be disclosed

Digital furniture and image enhancement will not automatically be prohibited. The law instead focuses on images altered in a way likely to mislead or deceive.

The government gave examples including virtual furniture that conceals structural damage or alterations that misrepresent a room’s proportions. Businesses that fail to make the required disclosure could face penalties of up to $22,000.

For renters, the rule should make it easier to distinguish ordinary presentation work from material changes that affect whether a property is suitable. Applicants should still inspect the home and compare the advertisement with its actual condition, particularly where photographs appear heavily processed.

The reforms also require disclosure when a property is connected to an embedded utility network. These private electricity or gas arrangements can leave tenants with a single provider, so knowing about the network before applying may help renters assess the property’s total running costs.

What happens next

The detailed regulations will determine how the reforms operate day to day. Until those rules are finalised and commenced, renters should not assume the standard form or preferred-applicant identity process is already mandatory.

Agents and landlords will need to review application platforms, document-retention practices and advertising workflows before early 2027. Renters should watch for updated NSW Fair Trading guidance explaining what information can be requested and how misleading digital alterations must be labelled.

What it means for you

• Renters should eventually need to provide fewer sensitive documents when competing for a property.
• Identity documents will generally be sought from the preferred applicant rather than everyone who applies.
• Misleading digitally altered rental images and embedded utility networks will require disclosure.
• The changes are not yet operating and are expected to commence in early 2027.