Notice of rent increase calculator

1. Goto: 6401.0 Consumer Price Index, Australia – latest release
2.Click through to: ‘Data downloads’ > ‘TABLE 9. CPI: Group, Sub-group and Expenditure Class, Index Numbers by Capital City’ > ‘Download XLSX’
2. Open: ‘640107.xlsx’
3. Goto: Data 5 worksheet > ‘Index Numbers ; Rents ; Canberra ;’ (usually around Column DP)
4. Refer: new CPI and old CPI to populate Step 2 and Step 4 of this form.
5. Goto: Notice of rent increase to generate notice with new rent amount.

Section 68 of the Residential Tenancies Act 1997 provides a formula to determine who bears the onus of proof when an increase is being reviewed by the Tribunal – ie, whether the landlord has to prove that the increase is not excessive, or whether you have to prove it is excessive. This a starting point only.

Section 68 then gives a list of factors that the Tribunal must consider when deciding whether an increase is fair, such as the state of repair of the premises and the rent for comparable premises (see section 68(3) below).

The law does not set a limit for increases.  It does provide you with a figure to use in negotiations with your landlord/agent, and factors for the Tribunal to look at if negotiations are unsuccessful and you apply for a rent review.

The formula increase is what your new rent would be if your property was average, and it tells you whether your landlord is seeking a larger or smaller percentage increase than the average landlord in Canberra.  However, your property may not be average.  The factors under section 68(3) may mean that your rent should increase by less or more than the average figure.

(1)    The tribunal must allow a rental rate increase that is in accordance with the standard residential tenancy terms unless the increase is excessive.

(2)    For subsection (1)—

(a) unless the tenant satisfies the tribunal otherwise, a rental rate increase is not excessive if it is less than 20% greater than any increase in the index number over the period since the last rental rate increase or since the beginning of the lease (whichever is later); and

(b) unless the lessor satisfies the tribunal otherwise, a rental rate increase is excessive if it is more than 20% greater than any increase in the index number over the period since the last rental rate increase or since the beginning of the lease (whichever is later).

(3) If a tenant or lessor proposes that a rental rate increase is or is not excessive, the tribunal, in considering whether it is satisfied about the proposal, must consider the following matters:

(a)    the rental rate before the proposed increase;

(b)    if the lessor previously increased the rental rate while the relevant tenant was tenant—

(i)    the amount of the last increase before the proposed increase; and

(ii)    the period since that increase;

(c)    outgoings or costs of the lessor in relation to the premises;

(d)    services provided by the lessor to the tenant;

(e)    the value of fixtures and goods supplied by the lessor as part of the tenancy;

(f)    the state of repair of the premises;

(g)    rental rates for comparable premises;

(h)    the value of any work performed or improvements carried out by the tenant with the lessor’s consent;

(i)    any other matter the tribunal considers relevant.

(4)    If the tribunal considers a proposed rental rate increase is excessive but a lesser increase would not be, it may disallow so much of the increase as is excessive.

(5)    In subsection (2): index number means the rents component of the housing group of the Consumer Price Index for Canberra published from time to time by the Australian statistician.