Rent increase above CPI?

It’s confronting to receive a rent increase that feels unfair or excessive. Over the past few years many renters have seen rent increases that have been very high.

The good news is that renters in Victoria now have stronger grounds to challenge rent increases, with the Consumer Price Index (CPI) becoming an additional mandatory consideration when assessing whether an increase is excessive.

CPI measures inflation. It tracks changes in the cost of everyday goods and services, including housing, food and utilities.

From 31 March 2026, new rental laws mean that when renters challenge a proposed rent increase, Consumer Affairs Victoria and the Victorian Civil and Administrative Tribunal (VCAT) will take CPI into account when assessing whether it is excessive.

Other factors they consider include the state of repair and general condition of the property, the difference between current and proposed rent, and the rent for comparable properties in the area.

We’re eager to see how this new CPI rule operates in practice, and are keen to ensure it works for renters. If you receive a rent increase above CPI, you can request an assessment from Consumer Affairs Victoria, and we encourage you to let us know how it goes.

1. Check the notice is valid

Your landlord must give you a written notice using the correct form and at least 90 days’ notice.

Learn more on our page about rent increases.

2. Compare the increase to CPI

Look up the most recent CPI for ‘All Groups Melbourne’ on the Australian Bureau of Statistics website: Consumer Price Index, Australia

The CPI for Melbourne is currently 3.3%.

If your rent increase is higher than CPI, you may wish to seek an assessment, and we encourage you to share the outcome with us.

Example: If CPI is 3.3%, and your current rent is $500 per week, and the proposed rent is $600 per week, that means that your rent is increasing by $100, which is 20%. This is higher than CPI. This difference must be considered when the proposed increase is assessed.

3. Get a free rent assessment

If you think the increase is too high, you can get a free rent assessment from Consumer Affairs Victoria within 30 days of receiving the notice.

A Consumer Affairs Victoria inspector may do a desktop review, or contact you to arrange a visit to your home. They will consider CPI as well as other factors, such as the difference between your current and proposed rent, the condition of the property, and how it compares to similar properties in your area.

You and your landlord will receive a written report.

If the report finds the increase is too high, the inspector may try to negotiate a fairer rent with the landlord. Even if they find it is reasonable, you can still try to negotiate with the landlord yourself. See the information on this page about how to negotiate with the landlord.

4. Apply to RDRV if needed

If you cannot reach an agreement, you can apply to RDRV – a free service that helps resolve rental disputes early, without needing to go to a formal hearing at the Victorian Civil and Administrative Tribunal (VCAT).

Learn more on our page about RDRV.

If you and your landlord cannot agree on the issue, RDRV may refer you to a formal VCAT hearing.

You should continue paying your rent while the matter is being resolved, so you don’t get behind. If possible, set aside savings in case the rent increase goes ahead.

We want to hear from renters who are challenging a rent increase based on CPI.

If you’ve already challenged a rent increase based on CPI, or are currently in the process of doing so, and would like to share your experience, you can express your interest by submitting your email address below.

We’ll send you a formal survey as soon as it’s available.

Hearing about your experience helps us understand how these changes are working in practice and informs our advice to renters and advocacy to government.

Any information you share with us is treated as confidential. If we want to use your story, we will always contact you first to ask for permission.