Northern Territory Consolidated Acts

RESIDENTIAL TENANCIES ACT - SECT 45

(1) The Commissioner may, on the application of a landlord or a tenant, determine whether:

(a) a method of calculating rent (whether or not specified in the tenancy agreement) is intended to enable genuine reductions in rent rather than to function as a penalty provision; or

(b) an amount by way of penalty or liquidated damages specified in the tenancy agreement is reasonably proportional to the actual loss that may be suffered as a consequence of the breach.

(2) If the Commissioner makes a determination under subsection (1) that:

(a) a method of calculating rent (whether or not specified in the tenancy agreement) is intended to enable genuine reductions in rent rather than to function as a penalty provision; or

(b) an amount by way of penalty or liquidated damages specified in the tenancy agreement is reasonably proportional to the actual loss that may be suffered as a consequence of the breach,

the term to which the determination relates is not a provision to which section 44(1) relates.

(3) The Commissioner must notify the landlord and the tenant of a determination under subsection (1).