1. What is the ACT Rent Increase Formula?

The ACT rent increase formula calculates the maximum allowable rent increase in the Australian Capital Territory, which is capped at 110% of the Canberra CPI (Consumer Price Index) or an agreed amount between landlord and tenant, whichever is lower.

2. How Does the Calculator Work?

The calculator uses the ACT rent increase formula:

Where:

• Canberra CPI — Current inflation rate percentage
• 1.1 — 110% multiplier (maximum allowed increase)
• Agreed Amount — Optional pre-agreed maximum increase amount

Explanation: The formula ensures rent increases don't exceed 10% above inflation rate or any pre-agreed limit between parties.

3. Importance of Rent Increase Calculation

Details: Accurate rent increase calculation is crucial for both landlords and tenants to ensure compliance with ACT rental laws and fair pricing adjustments.

4. Using the Calculator

Tips: Enter current Canberra CPI percentage, current rent amount, and optionally any agreed maximum increase amount. All monetary values are in AUD.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current Canberra CPI?
A: The Canberra CPI is published quarterly by the Australian Bureau of Statistics (ABS).

Q2: How often can rent be increased in ACT?
A: Rent can only be increased once every 12 months in the ACT.

Q3: Is there a maximum percentage increase allowed?
A: The maximum is 110% of the Canberra CPI unless a lower amount is agreed upon.

Q4: What if no amount is agreed upon?
A: If no amount is agreed, the increase is capped at 110% of Canberra CPI.

Q5: Are there exceptions to these rules?
A: Some fixed-term agreements may have different terms, but standard periodic agreements follow these rules.