Victorian Current Acts Victorian Current Acts(1) A site agreement may provide that rent under the site agreement may be increased—
S. 206SA(1)(a) amended by No. 33/2024 s. 6(1).
(a) subject to subsections (3) and (3A), by a fixed amount in accordance with a specified method of calculating the rent increase; or
(b) by a non-fixed amount.
Note
A term referred to in subsection (1) may be varied by agreement with the site owner, the subject of an application under section 206G or the subject of an unfair contract term claim under the Australian Consumer Law (Victoria).
(2) A site owner must not increase the rent payable by a site tenant at intervals of less than 12 months.
(3) For the purposes of subsection (1)(a), a specified method of calculating a rent increase may refer to multiple methods of calculating a rent increase, based on varying circumstances, provided that only one method applies for each circumstance.
Example
A site agreement may contain a term that the rent will increase each year by 2% or the CPI percentage rate in that year, whichever is higher.
S. 206SA(3A) inserted by No. 33/2024 s. 6(2).
(3A) For the purposes of subsection (1)(a)—
(a) a specified method of calculating a rent increase must clearly define the formula and the specific index being used (if any); and
(b) if the specified method includes a reference to CPI, "CPI" means the all groups consumer price index for Melbourne in original terms published by the Australian Bureau of Statistics.
(4) If rent under a site agreement is to be increased by a fixed amount under subsection (1)(a), the site owner must give at least 28 days written notice of the increase to the site tenant before the day on which rent is increased.
(5) Notice given under subsection (4) must—
(a) be in the prescribed form; and
(b) specify—
(i) the amount of increased rent; and
(ii) the method used to calculate the increased rent amount; and
(iii) the date from which the increased rent is payable.
Note
A notice may be challenged under section 206G or the Australian Consumer Law (Victoria).
S. 206T inserted by No. 67/2010 s. 10, amended by No. 45/2018 s. 192.