Can I say no to a rent increase in the ACT?
No, you cannot simply ignore a rent increase in the ACT. However, you can formally challenge it. If a proposed increase is above the legal limit, your landlord needs your agreement. If you refuse, they must apply to the ACT Civil and Administrative Tribunal (ACAT) for approval.
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How it works in practice
Understanding Rent Increases in the ACT
In the Australian Capital Territory (ACT), landlords cannot simply raise your rent by any amount they choose. Rent increases are strictly regulated and generally limited to a specific prescribed amount, which is tied to the Consumer Price Index (CPI).
Refusing an Excessive Increase
If your landlord proposes a rent increase that is above the legal prescribed amount, they must explicitly state this on the notice. You have the right to say no to this excessive increase. If you do not agree in writing, the landlord cannot enforce the higher rent unless they apply to the ACT Civil and Administrative Tribunal (ACAT) and get an official order.
Challenging Standard Increases
Even if the rent increase is below the legal limit, you still have rights. If you believe the increase is unfair—perhaps because the property is in poor condition or market rents have dropped—you can formally challenge it. You must write to your landlord to negotiate or apply directly to ACAT for a review before the new rent takes effect.
Keep Paying Your Rent
You cannot simply stop paying rent if you disagree with the increase. Until ACAT makes a decision or you reach a mutual agreement, you are legally required to continue paying your current rent amount.
Important exceptions
If you are on a fixed-term lease, your landlord generally cannot increase the rent at all during the term unless your tenancy agreement specifically includes a clause allowing for it, detailing the exact amount or calculation method.
Additionally, rent can only be increased once every 12 months. If your landlord attempts to increase the rent more frequently, or fails to provide the mandatory eight weeks' written notice, the increase is legally invalid, and you do not have to pay the new proposed amount.
What you should do now
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Check the written notice to ensure your landlord has provided the mandatory eight weeks' warning and it has been at least 12 months since any previous increase.
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Verify the legal limit using the ACT Government's rent increase threshold rules to see if the proposed amount is above the allowed prescribed limit.
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Write to your landlord or property manager immediately if you disagree with the increase, outlining your reasons and proposing a more reasonable rental amount.
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Decline the increase in writing if it exceeds the prescribed amount, which legally requires the landlord to apply to the tribunal if they still want to proceed.
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Apply to the ACT Civil and Administrative Tribunal (ACAT) for an assessment if the increase is under the limit but you believe it is excessive or unfair.
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