Guideline for orders
68 Guideline for orders
This section applies if an application is made to the ACAT under section 64B (1) (c) or section 64C (1) in relation to a rental rate increase.
The ACAT must allow a rental rate increase if—
for a fixed term agreement to which section 64A applies—the increase is allowed under the agreement and is not excessive; or
in any other case—the increase is not excessive.
For subsection (2)—
unless the tenant satisfies the ACAT otherwise, a rental rate increase is not excessive if it is equal to or less than the amount prescribed by regulation; and
unless the lessor satisfies the ACAT otherwise, a rental rate increase is excessive if it is more than the amount prescribed by regulation.
If a tenant or lessor proposes that a rental rate increase is or is not excessive, the ACAT, in considering whether it is satisfied about the proposal, must consider the following matters:
the rental rate before the proposed increase;
if the lessor previously increased the rental rate while the relevant tenant was tenant—
the amount of the last increase before the proposed increase; and
the period since that increase;
outgoings or costs of the lessor in relation to the premises;
services provided by the lessor to the tenant;
the value of fixtures and goods supplied by the lessor as part of the tenancy;
the state of repair of the premises;
rental rates for comparable premises;
the value of any work performed or improvements carried out by the tenant with the lessor’s consent;
any other matter the ACAT considers relevant.
If the ACAT 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.
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