ACT Introduces New Calculator Tool to Assist Tenants in Calculating Fair Rent Increases
The rent increase calculator allows users to determine the maximum permissible rent increase based on their specific circumstances.
As rents continue to rise across the country, the ACT Labor-Green government has introduced a “rent increase calculator” to help residents calculate a fair rental increase.
Attorney-General Shane Rattenbury stated that this initiative is part of a broader effort to alleviate the impact of rising living costs and promote a fair and transparent rental market.
“We use a formula based on the consumer price index to determine when a rent increase is excessive, but we recognize that calculating the permissible increase can be complex for both landlords and tenants,” Rattenbury said in a statement.
The calculator allows users to calculate the maximum permissible rent increases under Australian Capital Territory law. Users can input their current rent, proposed rent, and relevant dates to receive guidance.
For example, if a user currently pays $580 (US$380.63) per week and the landlord proposes an increase of $20 per week, the calculator will indicate if this exceeds the permissible limit.
In this scenario, the tool would display: “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.”
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The tool also emphasizes that tenants are not required to agree to an excessive increase.
If there is a disagreement, the landlord must seek permission from the ACT Civil and Administrative Tribunal to implement the proposed increase. According to ACT law, landlords can only raise rent by up to 10 percent per year with at least eight weeks’ written notice.
“We have taken action in response to Canberrans’ concerns about the complexity of rent increase calculations. This new calculator directly addresses community feedback, making renting in the Territory more transparent and fair,” Rattenbury added.
The ACT government has also launched a rent relief fund that provides grants of up to $2,500 to assist low-income renters and occupants experiencing rent stress or financial hardship.
Housing affordability has been a widely discussed issue in Australia in recent years.
The Albanese government has acknowledged that the country is facing “historic underinvestment” in housing, leading to a significant supply shortage. In its 2024-25 budget, housing crisis got an entire chapter dedicated to it, underscoring the seriousness of the problem.
