ACT Introduces ‘Calculator’ to Help Tenants Determine Fair Rent Increases

The calculator allows users to determine the maximum permissible rent increase based on their specific circumstances.
ACT Introduces ‘Calculator’ to Help Tenants Determine Fair Rent Increases
A ‘For Rent’ and a ‘For Sale’ sign is seen in Canberra, Australia on Feb. 27, 2023. AAP Image/Lukas Coch
Naziya Alvi Rahman
Updated:
0:00

As rising rents continue to be a major issue across the country, the ACT Labor-Green government has introduced its “rent increase calculator” to help residents work out what a fair rental increase is.

Attorney-General Shane Rattenbury stated the initiative was part of a broader effort to ease the burden of rising living costs and promote a fair, transparent rental market.

“We use a formula based on the consumer price index to define when a rent increase is excessive, but we understand that calculating the permissible increase can be complicated for both landlords and tenants,” Rattenbury said in a statement.

The calculator allows users to determine the maximum permissible rent increases under Australian Capital Territory law. Canberrans can input their current rent, proposed rent, and relevant dates to receive advice.

For instance, if you currently pay $580 (US$380.63) per week and your landlord proposes an increase of $20 per week, the calculator will alert you if this exceeds the permissible limit.

In this example, the tool indicated, “The proposed increase is $600 per week. However, the allowable increase is only $593 per week. The proposed rent increase of $600 per week exceeds the limits of the prescribed increase of $13.”

The tool also clarifies that tenants are not obligated to agree to an excessive increase.

If there is disagreement, the landlord must apply to ACT Civil and Administrative Tribunal for permission to impose the proposed increase. Under ACT law, landlords can only increase rent up to 10 percent per year every 12 months, with at least eight weeks’ written notice.

“We’ve listened to Canberrans’ concerns about the complexity of rent increase calculations and have taken action. This new calculator responds directly to community feedback, making renting in the Territory more straightforward and equitable,” Rattenbury added.

The ACT government also announced a rent relief fund offering grants of up to $2,500 to help low-income renters and occupants facing rent stress or financial hardship.

The government is also seeking public input to establish minimum standards for rental properties and occupancy law reforms, with consultation open until Sept. 2, 2024.

Housing affordability has been one of the most discussed problems in Australia in the last few years.

The Albanese government said the country is suffering from “historic underinvestment” in housing that’s created a significant supply shortage. In its 2024-25 budget, it dedicated an entire chapter to the crisis—a sign of how seriously the issue is considered.

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