Rent Increase ACT: Complete Guide for Landlords

If you’re a self-managing landlord in the ACT, rent increases are one of the most tightly regulated parts of the tenancy. The ACT is one of the few Australian jurisdictions that imposes both a frequency cap and a monetary cap on rent increases, enforced through a formula tied to the Canberra Rents CPI. Get any one of the three key requirements wrong — the 12-month minimum interval, the 8 weeks’ written notice, or the prescribed amount calculation — and the increase is not legally valid. The tenant can continue paying the existing rent, or they can apply to the ACT Civil and Administrative Tribunal (ACAT) to have the increase set aside.

The rules are set out in Part 5 of the Residential Tenancies Act 1997 (the Act), clauses 34–41 of the Standard Residential Tenancy Terms in Schedule 1, and section 5A of the Residential Tenancies Regulation 1998 (the Regulation), which defines the prescribed amount. Together, these provisions mean that for most ACT tenancies you cannot simply pick a new number you think is fair — you must calculate what the Act allows, notify the tenant correctly, and wait out the statutory notice period before the increase takes effect.

This guide walks through every step of a legally valid rent increase in the ACT: when you can do it, how much you can increase by, how to give a valid notice, what happens if the tenant disagrees, when ACAT is involved, and what happens if you get it wrong. It also covers the less-discussed flip side — the circumstances in which a tenant can apply to have their rent reduced, and how that interacts with any proposed increase.

If you’re changing rent during an existing tenancy, it helps to review the ACT tenancy agreement guide and the broader ACT residential tenancies act guide first. If money is later disputed at the end of the tenancy, our ACT rental bond guide guide is the other page you’ll most often need.

The three rules every ACT landlord must follow

ACT rent increase law sits on three independent legal requirements. Each one must be satisfied separately. If any one of them fails, the increase is invalid, and the tenant does not have to pay it — regardless of how reasonable the other two were.

The three rules are:

1. Frequency. An increase can only take effect 12 months or more after the start of the tenancy (for a first increase) or after the last increase (for any subsequent increase). This is section 64AAA of the Act and clause 35 of the Standard Terms.

2. Notice. You must give the tenant at least 8 weeks’ written notice of the increase, and the notice must contain specific information. This is section 64B(2) of the Act and clause 38 of the Standard Terms.

3. Amount. The increase must not be more than the prescribed amount calculated under section 5A of the Regulation, unless the tenant agrees in writing to a higher amount or you obtain prior ACAT approval. This is section 64B(1) of the Act.

The rest of this guide unpacks each rule in turn — and then covers what happens if the tenant disputes the increase, if ACAT gets involved, or if the tenant applies for a rent reduction of their own.

Rule 1 — The 12-month frequency cap

Section 64AAA of the Act is unambiguous: a rental rate increase must not take effect less than 12 months after either the start of the tenancy (for the first increase) or the day the last increase took effect (for any subsequent increase). Clause 35 of the Standard Terms repeats the same rule in the standard-terms language that applies to every ACT tenancy.

When the 12 months is measured from

The 12-month clock starts on one of two dates, depending on whether the tenancy has been through a previous rent increase:

• If there has never been a rent increase under this tenancy: The 12 months runs from the day the residential tenancy agreement started. Not the day you signed it, and not the day the tenant moved in if that’s different — the day the agreement commenced according to its own terms.
• If there has been a previous increase: The 12 months runs from the day the last increase took effect — not the day you gave the notice for it.

(A short note on sources: the ACT Government’s Renting Book describes the 12 months as running from “the date you were given notice about your most recent rent increase”, which measures the period from the notice date rather than the effective date. The Act is the primary source, and landlords should follow section 64AAA’s “took effect” language.)

The distinction matters because the 8-week notice period means the day the notice is given and the day the increase takes effect will always be at least 8 weeks apart. If you treat the wrong date as the starting point, you can easily end up with an increase that falls inside the 12-month window and is therefore prohibited.

Consecutive tenancy agreements — the 12 months carries across

One of the more commonly misunderstood parts of the rule is what happens when a tenant signs a new fixed-term agreement with the same landlord at the end of the previous one. This is called a “consecutive tenancy agreement” under the Act. Section 64AAA(2) provides that for a consecutive tenancy agreement, the lessor must not increase the rental rate unless the increase takes effect at least 12 months after the day the last increase took effect — whether that last increase occurred under the current (consecutive) agreement or under the previous (terminated) residential tenancy agreement.

Where there has been no previous increase at all, section 64AAA(2) is not engaged (it deals only with the case where there is a “last increase” to measure from). In that scenario, the ACT Government’s guidance indicates the 12 months is measured from the start of the original tenancy — which is why, in the Access Canberra worked example, a landlord and tenant who enter a 6-month fixed term and then sign a consecutive 12-month fixed term cannot increase the rent until 6 months into the second fixed term (12 months after the original tenancy began).

In practical terms, this means you cannot lock in a rent increase by simply ending one tenancy and starting a new one with the same tenant at a higher rate. The new rate is treated as an increase under the Act, and it must comply with the 12-month rule as if the tenancy were continuous.

Pre-amendment fixed-term agreements — different rules

Section 64A of the Act applies only to fixed-term agreements entered into before the commencement of section 76 of the Housing and Consumer Affairs Legislation Amendment Act 2024 (A2024-29). For these pre-amendment agreements, rent cannot be increased during the fixed term unless the amount of the increase, or a method for working it out, is set out in the agreement itself.

The ACT Government’s guidance notes that fixed-term tenancy agreements that started before 10 December 2024 may include different arrangements for how much rent can be increased by — if they do, those details will be in the tenancy agreement. If you have an older fixed-term agreement still running, check what it says about rent increases before sending a notice. The agreement term is necessary for a fixed-term increase and may affect whether a higher-than-prescribed increase is permitted, but it does not displace the rest of Part 5: the frequency rule, 8-week notice requirement, tenant review right, and ACAT excessive-rent framework still matter unless the Act expressly modifies them.

Rule 2 — The 8-week written notice

Section 64B(2)(a) of the Act requires that the day the proposed increase takes effect be at least 8 weeks after the day the notice is given. Clause 38(1) of the Standard Terms restates the rule in standard-terms language: the lessor must give the tenant 8 weeks’ written notice of an intended rent increase. The 8 weeks is a minimum, not a target — you can give more notice if you want to, but you cannot give less.

What the notice must contain

The notice is not a casual email saying “rent’s going up.” Section 64B(2) sets out the specific content that the notice must state. It must include all of the following:

• The day the proposed increase takes effect — which must be at least 8 weeks after the day the notice is given (section 64B(2)(a))
• The amount of the proposed increase (section 64B(2)(b))
• Whether the amount of the proposed increase is more than the prescribed amount under section 64B(1) (section 64B(2)(c))
• If the proposed increase is more than the prescribed amount — a statement that if the tenant does not agree to the increase, the lessor may only make the proposed increase with the prior approval of ACAT (section 64B(2)(d))

Clause 38(2) of the Standard Terms restates these content requirements in plain English. The notice to the tenant must include the date when the increase is proposed to take effect, the amount of the proposed increase, whether the amount of the increase is more than the prescribed amount, and that ACAT’s prior approval must be obtained for an increase that is more than the prescribed amount if the tenant does not agree to the increase.

Why the content matters

This is not boilerplate. Each element has a specific legal purpose:

• The date allows the tenant to calculate whether the 8-week notice period has been satisfied, and whether the 12-month frequency rule has been met.
• The amount allows the tenant to check the maths against the prescribed amount formula.
• The “is it more than the prescribed amount” disclosure is what triggers the tenant’s right to refuse. If the notice says the increase is within the prescribed amount but the tenant calculates otherwise, the tenant has grounds to challenge. If the notice says the increase is above the prescribed amount, the tenant knows immediately that they do not have to agree.
• The ACAT approval warning (for above-prescribed-amount increases) ensures the tenant knows they have a legal right to refuse without the tenancy being ended.

Omit any of these and the notice is legally defective. A defective notice does not stop the 12-month clock — you can simply issue a fresh notice, wait another 8 weeks, and start again — but the proposed increase on the defective notice does not take effect.

Written form — and how to deliver it

The notice must be in writing. The Act does not prescribe a particular template or form — you can draft your own — but it must be a document and it must contain all the mandated content set out in section 64B(2).

Unlike termination notices (which are subject to a specific service rule in section 5 of the Regulation), the Act does not prescribe a specific method of service for a rent increase notice. The safest course is therefore to give the notice in a way you can clearly evidence: personal delivery (ideally with a signed acknowledgement), or prepaid post to the tenant’s clause 98 address for service, or both. Clause 98 of the Standard Terms requires each party to give the other an address for service of “other notices” (in addition to termination notices) at the start of the tenancy, and to update that address within 2 weeks of any change — so the tenant’s clause 98 address is the correct destination for a posted notice.

Email is not itself a prescribed method of service under the Act or the Regulation. If you want to serve the notice by email, do so only where the tenancy agreement or another piece of written communication from the tenant expressly authorises email service of notices — and even then, consider also serving by one of the more clearly-evidenced methods as a backstop.

Keep a dated copy of the notice and your proof of delivery. If the tenant later disputes the validity of the notice at ACAT, you will need to be able to produce both.

Rule 3 — The prescribed amount

This is the rule that does most of the legal work in ACT rent-increase disputes, and it’s the one where mistakes most commonly occur. Section 64B(1) of the Act says that a rental rate increase for premises must not be more than the amount prescribed by regulation — subject to three exceptions. Section 5A of the Regulation sets out the formula.

The formula

Section 5A(1) of the Regulation defines the prescribed amount by the following formula (rendered here for readability — the Regulation sets it out as a display expression):

prescribed amount = 1.1 × current rental rate × [(current index number − initial index number) ÷ initial index number]

Where:

• Current rental rate is the rent being paid under the current agreement (or, for a proposed consecutive tenancy agreement, the rent under the terminating or terminated agreement).
• Current index number is the most recently published index number at the time the lessor gives the tenant notice of the proposed increase.
• Initial index number is the most recently published index number on the reference date — broadly, either the day the current tenancy started (if there has been no previous increase) or the day notice of the last increase was given.
• Index number means the rents subgroup of the housing group of the Consumer Price Index for Canberra, published from time to time by the Australian statistician (the head of the Australian Bureau of Statistics).

In plain English, the prescribed amount is 110% of the percentage growth in the Canberra Rents CPI between two reference dates, multiplied by the current rent. The 1.1 multiplier means the prescribed amount is 10% higher than the pure CPI rental growth rate.

The ACT Government’s plain-language summary in The Renting Book describes it this way: the amount is 110% of the inflation rate for rental prices since rent was first set or most recently increased. Rent increases above this amount are presumed to be “excessive” and are not allowed unless the tenant agrees or ACAT approves them.

Worked examples

The following figures are illustrative only. The current Canberra Rents CPI index numbers must be sourced from the ABS at the time you give notice — do not rely on any of the figures below as current.

Example 1 — A small CPI increase. A tenant is paying $500/week. The Canberra Rents CPI has risen by 2% between the reference date of the tenancy and the day the landlord gives notice.

• 1.1 × 2% = 2.2%
• 2.2% × $500 = $11
• Maximum new rent under the prescribed amount: $511/week

This exact example appears in the Access Canberra rent increases guidance.

Example 2 — A higher rent. A tenant is paying $700/week. The Canberra Rents CPI has risen by 3% between the reference date and the day the landlord gives notice.

• 1.1 × 3% = 3.3%
• 3.3% × $700 = $23.10
• Maximum new rent under the prescribed amount: $723.10/week

Example 3 — Worked with actual index numbers (from The Renting Book). A tenancy commences on 15 December 2024 with rent of $600/week. The landlord proposes to increase the rent from 27 January 2026 and notifies the tenant 8 weeks in advance, on 1 December 2025.

• Current index number (rents for Canberra, most recently published at 1 December 2025): 100.01
• Initial index number (rents for Canberra, most recently published at 15 December 2024): 99.37
• Formula: 1.1 × $600 × [(100.01 − 99.37) ÷ 99.37] = 1.1 × $600 × 0.00644 = approximately $4.25
• Maximum new rent: $604.25/week

The Renting Book uses exactly this worked example to walk tenants through the calculation themselves. The key point for landlords: if rental CPI growth has been modest over the 12-month interval, the prescribed amount will be a modest dollar figure — potentially a few dollars a week on a $600 rent. The prescribed amount is not designed to let you catch up to a “market” rent. It tracks CPI growth, with a small buffer.

When the prescribed amount can be exceeded

Section 64B(1) allows three exceptions to the prescribed amount cap:

• (a) For a fixed-term agreement to which section 64A applies (that is, a pre-amendment fixed-term agreement), where the agreement itself allows the lessor to increase the rental rate by a higher amount;
• (b) After the lessor gives notice under section 64B(2), the tenant agrees in writing to the increase;
• (c) The lessor obtains ACAT’s prior approval.

Exception (b) — written tenant agreement — is the most commonly used for modern tenancies, but it must be genuine written agreement. The tenant has to actually agree, in writing, after receiving the notice. Silence is not agreement. Paying the higher amount is not itself agreement in the sense the Act contemplates. And because section 64B(2)(d) requires the notice to tell the tenant they do not have to agree and can force the landlord to seek ACAT approval, attempts to extract agreement by implying the tenant has no choice are likely to be defective.

Exception (c) — prior ACAT approval — means applying to ACAT before the increase takes effect. You do not issue the notice, wait for the tenant to fail to respond, and then apply for post-hoc approval. The approval must be prior.

What happens if you exceed the prescribed amount without these exceptions

Any increase above the prescribed amount that does not fall within one of the three exceptions is not permitted. If the tenant applies to ACAT for review under section 64C, the tribunal applies the test in section 68 of the Act — and section 68(3)(b) creates a statutory presumption that an increase above the prescribed amount is excessive, which the lessor then bears the onus of rebutting.

Excessive rent increases — the ACAT test

Section 68 sets out the framework ACAT uses when a rent-increase application is before it. The test hinges on the word “excessive” — which is a term of art here, defined partly by the prescribed amount and partly by the tribunal’s discretion.

The test in section 68(2)

Section 68(2) sets the test ACAT must apply. It has two limbs depending on the type of tenancy:

• (a) For a pre-amendment fixed-term agreement to which section 64A applies, ACAT must allow the increase if the increase is allowed under the agreement and is not excessive.
• (b) In any other case (which covers the modern default tenancy), ACAT must allow the increase if it is not excessive.

For a pre-amendment fixed-term agreement, then, two separate conditions must be satisfied — the agreement itself must permit the increase, and the increase must not be excessive. For every other tenancy, the question is simply whether the increase is excessive.

The statutory presumptions in section 68(3)

Section 68(3) creates two presumptions that shape the “excessive” question:

• (a) Unless the tenant satisfies ACAT otherwise, a rental rate increase is not excessive if it is equal to or less than the prescribed amount. (This means a below-prescribed-amount increase is presumed valid; the tenant must prove otherwise.)
• (b) Unless the lessor satisfies ACAT otherwise, a rental rate increase is excessive if it is more than the prescribed amount. (This means an above-prescribed-amount increase is presumed invalid; the lessor must prove otherwise.)

The practical effect is that the prescribed amount is not a hard cap — but it is the default, and whichever side is on the wrong side of it carries the burden of proof.

Factors ACAT must consider

Section 68(4) of the Act lists the matters ACAT must consider when deciding whether a rent increase is or is not excessive:

• (a) The rental rate before the proposed increase
• (b) If the lessor previously increased the rental rate while the same tenant was in place: the amount of the last increase, and the period since that increase
• (c) Outgoings or costs of the lessor in relation to the premises
• (d) Services provided by the lessor to the tenant
• (e) The value of fixtures and goods supplied by the lessor as part of the tenancy
• (f) The state of repair of the premises
• (g) Rental rates for comparable premises
• (h) The value of any work performed or improvements carried out by the tenant with the lessor’s consent
• (i) Any other matter ACAT considers relevant

Factor (g) — comparable market rents — is often the one landlords most want to rely on when seeking an increase above the prescribed amount. It is relevant, but it is one of nine factors, and it does not displace the others. If the property is in poor repair (factor (f)), or the tenant has made improvements at their own expense with your consent (factor (h)), those factors weigh the other way.

Partial allowance — section 68(5)

Section 68(5) gives ACAT a useful middle option: if ACAT considers the proposed increase is excessive but a lesser increase would not be, it may disallow only so much of the increase as is excessive. Section 68A lists the orders ACAT can make in rent-increase applications: an order allowing the increase applied for, or another increase ACAT considers just; an order disallowing the increase; or an order disallowing part of the increase.

So an application for a large increase does not necessarily result in a binary win or loss — ACAT can land on a smaller increase that it considers justified on the evidence.

How a tenant reviews a proposed increase

Section 64C of the Act gives the tenant the right to apply to ACAT for review of a proposed rental rate increase. The tenant’s application must be made not less than 2 weeks before the day on which the proposed increase is to come into effect.

What happens when a review application is lodged

Two important consequences follow from a tenant’s review application:

The rent freeze (section 66). If an application for review of a rental rate increase has been made but not decided, no increase in the rental rate happens unless allowed by ACAT. This is the rent-freeze provision. The practical effect is that while an ACAT review application is on foot and undecided, you cannot collect the increased rent. The tenant continues paying the existing amount, and the increase is on hold until the tribunal decides.

If ACAT eventually allows the increase under section 68A(a) or (c), section 69(1) says the increase takes effect from the date it would otherwise have taken effect — meaning the tenant may owe back rent from the original proposed date. Section 69(2) says that, on application by the tenant, ACAT may grant the tenant time to pay the rent owed because of the operation of the freeze. And section 69(3) applies where (a) ACAT makes an order under section 68A(b) or (c) (disallowing the increase in whole or in part), and (b) the tenant — despite the section 66 freeze — has paid the lessor the full amount of the proposed rental rate increase. In that situation, ACAT may order the lessor to pay the tenant the difference between what was paid and what was payable.

The waiver provision (section 65). ACAT may hear a review application even if it is made less than 2 weeks before the increase is to take effect, if the tribunal is satisfied that the application is late because of special circumstances and hearing it would not put the lessor in a significantly worse position than if the tenant had applied on time. In other words, the 2-week deadline is not an absolute bar — but tenants are better served by applying on time.

If the tenant does not apply — clause 40

Not every tenant challenges a rent increase. Clause 40 of the Standard Terms deals with the common scenario where the tenant simply continues in occupation without lodging a review application: the increase takes effect from the date specified in the landlord’s notice. No additional step is required from the landlord. Continued occupation after the effective date, at the higher rate, is the normal outcome.

The “further increases void” rule (section 70)

Section 70 contains a significant consequence for a landlord whose increase goes to ACAT review: if a proposed rental rate increase has been reviewed by ACAT, any further purported increase in the rental rate for a period of 12 months after the day the proposed increase was to take effect is void.

This is independent of who won the review. The clock on any subsequent increase runs from the date the original proposed increase was to take effect — even if ACAT reduced or disallowed it. The practical effect is that once you are in ACAT for a rent-increase dispute, you are locked out of any further increase for a full 12 months from that original reference date.

The tenant’s 3-week vacate right — clause 41

One of the most important planning considerations for a landlord issuing a rent increase notice is clause 41 of the Standard Terms. Clause 41(1) provides that if the tenant wishes to vacate the premises before the increase takes effect, the tenant must give 3 weeks’ notice to the lessor.

For a tenant under a fixed-term agreement, this is a material advantage. A tenant ending a fixed term early without a statutory reason would ordinarily be exposed to the break fee under clause 89A(1): 6 weeks’ rent if less than half the fixed term has expired, or 4 weeks’ rent otherwise (for fixed terms of 3 years or less). Clause 41 provides a clean 3-week exit with no break fee, triggered by the rent increase notice itself. In cash terms, a landlord who issues a rent increase notice to a fixed-term tenant is handing the tenant a no-cost path out of the tenancy if they would rather leave than pay the new rate.

For a tenant under a periodic tenancy, the 3-week period is the same as the ordinary notice the tenant could give under clause 88(1) — so clause 41 is not shorter than the default periodic-termination period. What it does is confirm that the 3-week exit remains available specifically in response to the rent increase, and triggers from receipt of the notice rather than at the tenant’s election.

Clause 41(2) provides a narrower pathway for a proposed consecutive tenancy agreement: in that case, the tenant may instead terminate the existing tenancy under clause 88 (periodic) or clause 89 (fixed term) of the Standard Terms, rather than relying on clause 41(1).

In practical terms: a landlord issuing a rent increase notice should anticipate the possibility that the tenant will use clause 41 to end the tenancy rather than accept the new rate. The 8-week notice period is a minimum for the increase to take effect; it is not a guaranteed 8-week lead time to the increased cash flow. If the tenant gives a clause 41 notice, the tenancy ends before the increase takes effect, and no higher rent is ever collected.

When the restrictions apply — clause 37

Clause 37 of the Standard Terms carves out an important boundary to the frequency and amount rules. The clause provides that the restrictions on the amount and frequency of rental rate increases apply provided the identity of at least one of the tenants who occupy the premises remains the same as at the time of the last increase.

In practical terms, this means the 12-month frequency cap and the prescribed amount cap are tied to tenant continuity. If there is a complete change of tenants — none of the original tenants remain — the rent-increase restrictions do not carry over to the new tenancy in the same way they would for an ongoing tenant.

This matters most in co-tenancy scenarios. If a property is let to two co-tenants and one leaves (and the other remains), clause 37 continues to apply — the restrictions run against the last increase. If both original tenants leave and new tenants take over, the mechanics are different. Landlords should be cautious, however, about engineering tenant changes specifically to reset the rent-increase clock. A pattern of ending tenancies shortly before a scheduled increase so that fresh tenants start at higher rent could expose the lessor to retaliatory-conduct arguments if the tenant seeks ACAT review of the termination process, or to challenges on unconscionability grounds.

How ACAT decides excessive-rent applications

A lessor seeking to charge more than the prescribed amount has two options under section 64B(1): obtain the tenant’s written agreement (exception (b)), or apply to ACAT for prior approval (exception (c)).

When a lessor must apply to ACAT

Per the ACAT case-type guidance (H5), a lessor must apply to ACAT for approval of a rent increase when:

• The proposed rent increase is more than the prescribed amount
• The tenant does not agree to the increase
• The residential tenancy agreement does not allow the increase

If all three are true, the only lawful way to raise the rent is prior ACAT approval.

The application process

To lodge a rent-increase application at ACAT, the landlord:

• Fills in the Application for Resolution of a Tenancy Dispute form in full
• Tells the tribunal what orders they are asking for and why
• Attaches any relevant documents (evidence of comparable rents, outgoings, state of repair, improvements, previous rent history)
• Lodges the form
• Pays the application fee unless an exemption, waiver, or deferral applies

ACAT will typically give a copy of the application to the parties, and schedule a conference. At the conference, both sides can attend, discuss the matter with an ACAT Member, and try to reach agreement. If no agreement is reached, the matter progresses to a hearing, and an ACAT Member will make orders after the hearing.

ACAT notes that it is useful, before the conference, for the lessor to give the tenant and the tribunal a document setting out how the rent increase was calculated — in other words, your prescribed-amount calculation, plus any evidence about the section 68(4) factors you are relying on to justify exceeding it.

Section 71 — Rent reductions

While this guide is focused on increases, a complete picture requires understanding the mirror provision: section 71 of the Act, which allows a tenant to apply for a rent reduction in certain circumstances. This matters for landlords because a rent reduction order blocks any rent increase while it is in force — and because the grounds for a rent reduction are directly tied to landlord obligations.

Grounds under section 71(1)

On application by a tenant, ACAT must order a reduction in rent if it considers the tenant’s use or enjoyment of the premises has diminished significantly as a result of any of the following:

• Loss or diminished utility of an appliance, furniture, facility or service supplied by the lessor — as a result of the lessor withdrawing it, failing to maintain the premises (and any supplied appliance, furniture or facility) in a reasonable state of repair compared with their condition at the start of the tenancy, or failing to provide and maintain the locks or other security devices necessary to keep the premises reasonably secure
• Loss of the use of all or part of the premises
• Interference with the tenant’s quiet enjoyment of the premises, or with the tenant’s ability to use the premises in reasonable peace, comfort and privacy, by the lessor, anyone claiming through the lessor, or anyone having an interest in or title to the premises

Section 71(3) says the rent reduction takes effect from the day the tenant’s use or enjoyment diminished (or a later date ACAT specifies) and remains in force for up to 12 months.

Section 71(5) — the rent increase block

Section 71(5) is the clause landlords should pay particular attention to: any purported rental rate increase in relation to premises for which a reduction order is in force is void, and any amount paid above the reduced rental rate in accordance with a purported increase is a debt owing by the lessor to the tenant.

In practical terms, if there is a current rent reduction order against your property, you cannot issue a rent increase notice and expect it to take effect. Any notice you issue will have no effect, and any higher rent you collect must be repaid.

Section 71AAA — Reductions for breach of minimum housing standards

Section 71AAA — introduced by the A2024-29 amendments — allows ACAT to order a rent reduction where the lessor fails to ensure the premises comply with a minimum housing standard under section 19B. This power differs from section 71 in an important way: a section 71 reduction is mandatory where the tenant establishes the statutory grounds (“the ACAT must order a reduction”), whereas a section 71AAA reduction is discretionary (“the ACAT may order a reduction”).

Section 71AAA(2) gives the lessor a specific defence: ACAT may refuse to make an order under section 71AAA(1) if the tenant has failed to provide the lessor with reasonable access in accordance with clause 82 of the Standard Terms. Clause 82 is the standard-term access right that lets the lessor enter the premises on 1 week’s notice (or another agreed period) for the purposes of making or inspecting repairs, or undertaking or inspecting work to ensure the premises comply with the minimum housing standards. In practical terms, if a tenant has blocked access under clause 82 and then applies for a section 71AAA rent reduction because the minimum standards have not been met, the lessor can ask ACAT to refuse the application on that basis.

Section 71AAA(5) mirrors section 71(5) in one key respect: any purported rental rate increase in relation to premises for which a section 71AAA reduction order is in force is void, and any amount paid above the reduced rate is a debt owing by the lessor to the tenant.

Freezing rents — section 66 and its interactions

Section 66 is worth covering in its own section because it interacts with multiple other provisions:

If an application for review of a rental rate increase has been made but not decided, no increase in the rental rate happens unless allowed by the ACAT.

This is a simple, powerful provision. From the moment the tenant lodges a valid section 64C application, the existing rent is frozen until ACAT makes its decision. Any attempt to collect the higher amount before ACAT decides risks being clawed back under section 69(3) if the increase is ultimately disallowed.

Combined with:

• Section 64C(2) — the tenant’s 2-week window to apply
• Section 65 — ACAT’s discretion to hear late applications
• Section 70 — the 12-month further-increases bar after any ACAT review

… section 66 makes clear that a contested rent increase is a significant delay, regardless of outcome.

Rent increases during family violence protections

The family violence provisions in Division 4.3A of the Act (sections 46C–46M) are principally about termination rights for tenants affected by domestic or family violence. However, they have indirect interactions with rent increase notices you should be aware of:

• A family violence termination notice under section 46D can specify a vacating day that is on or after the day the notice is given. There is no minimum notice period — the notice can be effective the same day in the right circumstances. That can be significantly shorter than the 8-week lead time of a rent increase notice.
• Where a co-tenancy is involved and a family violence termination notice terminates one co-tenant’s interest, the remaining tenants continue — and any rent increase notice you had on foot still needs to comply with the 12-month rule measured against the original tenancy, not the day the family violence termination took effect.

Detailed treatment of family violence provisions sits in the Eviction Notice ACT guide. For rent increase purposes, the key point is that if a tenant gives you a family violence termination notice mid-cycle, do not treat it as a reset of any of your rent-increase timelines.

Common landlord mistakes

Across the ACT rent-increase framework, a handful of mistakes recur. None of them are hard to avoid once you know the rule — but each one is common enough to see in ACAT decisions, and each one results in a notice that is not legally valid.

1. Measuring the 12 months from the wrong date. The clock runs from the date the last increase took effect, not the date notice was given for it. Notice dates and effective dates are always at least 8 weeks apart. If you use the notice date as your 12-month reference, you will send the next notice 8 weeks too early.

2. Using a “start of new fixed term” reset. Signing a consecutive fixed-term agreement does not reset the 12-month clock. Section 64AAA(2) treats consecutive agreements as continuous for rent-increase purposes.

3. Sending notices less than 8 weeks before the intended effective date. The 8 weeks is a minimum. Sending a notice 6 weeks before the proposed date does not result in a 6-week increase — it results in a defective notice and no increase at all.

4. Omitting the “is this above the prescribed amount?” disclosure. Section 64B(2)(c) requires you to state in the notice whether the proposed increase is more than the prescribed amount. Omitting this makes the notice defective even if the increase is within the prescribed amount.

5. Asserting the increase is within the prescribed amount when it isn’t. If the tenant recalculates and proves the amount is above the prescribed amount, you’ve issued a notice that (a) was incorrect in its disclosures, (b) did not include the section 64B(2)(d) warning about ACAT approval, and therefore (c) was defective.

6. Using an old or wrong CPI index. The index for the prescribed amount is specifically the rents subgroup of the housing group of the Consumer Price Index for Canberra — not the headline all-groups CPI, and not a national figure. Using the wrong index changes the prescribed amount, often in the landlord’s favour, and opens the notice to challenge.

7. Attempting an above-prescribed-amount increase without obtaining written tenant agreement or prior ACAT approval. Section 64B(1) requires one of the three exceptions for any increase above the prescribed amount. Silence from the tenant is not agreement. Continued payment at the old rate is not agreement. Only explicit written agreement or a prior ACAT order suffices.

8. Proceeding to collect the higher rent once the tenant has applied to ACAT. Section 66 freezes the rent from the moment a valid section 64C application is lodged. Continuing to invoice at the higher rate, or recording the tenant as in arrears for not paying it, risks being overturned under section 69(3) and creates grounds for a tenant complaint about retaliatory conduct.

9. Issuing a second rent increase notice within 12 months of a reviewed increase. Section 70 voids any further purported increase within 12 months after a reviewed increase’s original effective date. Once you have been through ACAT on a rent increase, the calendar is locked — regardless of whether you won or lost.

10. Issuing a rent increase notice while a section 71 or 71AAA reduction order is in force. Section 71(5) and section 71AAA(5) make any purported increase void while a reduction order is in force. Check the current status of any reduction orders before issuing a notice.

Related guides for ACT landlords

If you are building out the full landlord workflow for this state, these guides connect this page to the rest of the tenancy process.

Same-state guides

• ACT tenancy agreement guide
• ACT rental bond guide
• ACT eviction notice guide

Compare rent increase guides in other states

• WA rent increase guide
• NSW rent increase guide
• QLD rent increase guide
• VIC rent increase guide
• SA rent increase guide
• Tasmania rent increase guide

Frequently asked questions

How often can I increase rent in the ACT?

Once every 12 months. Section 64AAA of the Residential Tenancies Act 1997 and clause 35 of the Standard Terms say a rental rate increase must not take effect less than 12 months after the start of the tenancy (for a first increase) or the day the last increase took effect (for any subsequent increase). For a consecutive tenancy agreement, the 12 months runs from the last increase under the previous agreement — it does not reset when the new agreement starts.

How much notice do I need to give a tenant before a rent increase in the ACT?

At least 8 weeks’ written notice. Section 64B(2) requires the notice to state the day the proposed increase takes effect (at least 8 weeks after the notice is given), the amount of the proposed increase, whether the amount is more than the prescribed amount, and — if it is above the prescribed amount — that the lessor can only apply the increase with the tenant’s agreement or with prior ACAT approval.

What is the prescribed amount for rent increases in the ACT?

The prescribed amount is defined in section 5A of the Residential Tenancies Regulation 1998 as 1.1 × current rental rate × (change in the Canberra Rents CPI ÷ initial index number). In plain English, it is 110% of the percentage growth in the rents subgroup of the housing group of the Consumer Price Index for Canberra between two reference dates, applied to the current rent. Rent increases above this amount are presumed excessive and require the tenant’s written agreement or prior ACAT approval.

Can I increase rent by more than the prescribed amount?

Yes, but only in three circumstances under section 64B(1): if a pre-amendment fixed-term agreement (section 64A) allows it; if the tenant, after receiving notice, agrees in writing to the higher amount; or if ACAT gives prior approval. Without one of these three exceptions, an increase above the prescribed amount is not permitted and will be treated as excessive if the tenant applies to ACAT.

What happens if the tenant disputes the rent increase?

The tenant can apply to ACAT under section 64C for review of a proposed rent increase at least 2 weeks before the proposed effective date. ACAT may hear a late application in special circumstances under section 65. Once the application is lodged, section 66 freezes the existing rent — no increase takes effect until ACAT decides. ACAT applies the test in section 68: it must allow the increase if it is not excessive, and section 68(3) creates a statutory presumption that an above-prescribed-amount increase is excessive (with the onus on the lessor to rebut). ACAT can allow the full increase, disallow it, or allow a lesser increase under section 68A.

Can I evict a tenant who refuses to agree to a rent increase above the prescribed amount?

No. The tenant’s refusal to agree to an above-prescribed-amount increase is not a termination ground under the Act. Attempting to terminate on this basis is likely to be treated as a retaliatory notice under section 64AD — which allows ACAT, on the tenant’s application, to disallow the termination notice. If the lessor then applies to ACAT for a termination and possession order, section 57 is engaged as well and ACAT must refuse to make the order. The lawful path is to apply to ACAT for prior approval under section 64B(1)(c), or to increase only up to the prescribed amount.

What index number do I use for the prescribed amount calculation?

The rents subgroup of the housing group of the Consumer Price Index for Canberra, published from time to time by the Australian statistician (Regulation section 5A(2)). In practice this means the relevant series in the ABS Consumer Price Index release. The current index number is the most recent published figure at the time you give notice of the proposed increase. The initial index number is the most recent published figure on the reference date for the previous increase (or the day the tenancy started, if there has been no previous increase). The comprehensive ABS CPI release — which includes the Canberra Rents subgroup needed for the formula — is published quarterly, which means the prescribed amount changes each quarter.

Does a rent freeze or reduction order affect my ability to increase rent?

Yes. Under section 71(5), any purported rent increase in relation to premises for which a rent reduction order is in force is void, and any higher amount collected is a debt owing to the tenant. Section 71AAA(5) applies the same rule to reduction orders made for breach of a minimum housing standard. And section 66 freezes the rent while any ACAT review application under section 64C is pending.

If a rent dispute ends with the tenancy changing or ending, pair this page with our ACT eviction notice guide.