Residential Tenancies Act 1997

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.