Mojo – your landlord is required to ensure that the premises is habitable, and under any definition they’re not, the Council has intervened, and in those circumstances your landlord can issue an immediate termination notice.
I assume that is what has happened, and in those circumstances I can’t help wondering why you’re still there and paying rent!
I know that finding short-term or alternate rental premises won’t be easy, and you may have to impose upon friends for a while, but you have been issued with the termination notice, and it’s in your best interests to move out now!
If the landlord attempts to take any of your Bond, on the assumption that its been deposited with the Rental Bond Board, make sure that you contact them to advise a forwarding address so you can be advised of any cash-grab by the landlord and respond to that by explaining how your departure came about.
I’m not surprised at Fair Trading’s response, but Tenants NSW is usually very helpful; maybe they weren’t aware of all the facts so contact them again, personally if possible.
Whatever happens, stop paying rent and move out yesterday!