Long-term social housing tenant Gregory Parsons will be able to retain his residence after an appeal by Housing Tasmania which would have resulted in his eviction was dismissed.
Mr Parsons, 55, was served a notice to vacate his Glenorchy home of 10 years because his lease was not renewed despite the fact he did not break any of Housing Tasmania's policies.
The Full Court of the Supreme Court voted unanimously to dismiss the appeal which sought to evict Mr Parsons on the basis that his lease had expired.
Chief Justice Alan Blow ordered Housing Tasmania to pay for Mr Parsons' legal costs.
Mr Parsons said he was over the moon with the court's decision.
"Today's a good day," Mr Parsons said.
Tenants' Union of Tasmania senior solicitor Ben Bartl, who represented Mr Parsons, said the decision was an important victory for the state's 13,000 social housing residents.
"The Full Court unanimously held that Housing Tasmania and other social housing providers must afford their tenants natural justice," Mr Bartl said.
"In other words, before social housing tenants are evicted into homelessness, the court must be satisfied that the tenant has been provided with the real reason for their eviction and provided with an opportunity to remedy the breach or seek a review."
Mr Bartl said the Full Court noted there must be strong grounds for eviction in situations involving agencies such as Housing Tasmania, whose purpose it was to provide housing to tenants who cannot afford to live in the private rental market.
"They will be able to evict tenants because they have breached their lease agreement, by failing to pay rent, causing damage to property and so on, but it must be the true reason and not a sham," Mr Bartl said.
"Tenants then have an opportunity to fix the breach within 14 days of receiving a Notice to Vacate, under the Residential Tenancy Act."
Mr Bartl said it was outrageous Housing Tasmania had gone down this path.
"Over many years Housing Tasmania has been evicting tenants because their lease is ending," he said.
"The question must be asked - why are they evicting tenants into homelessness knowing that those very same tenants are going to be reapplying for housing and seeking alternative accommodation through them?"