Rent Increases and the Transitional Provisions
Hill v Katnelson [2025] VCAT 711
Decision date: 11 August 2025
In this case, VCAT was asked to decide whether a renter had overpaid rent because her notices of rent increase were invalid.
Full Case: https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VCAT/2025/711.html
The Background
Elizabeth Hill had rented a one-bedroom apartment in Armadale since 2020. Her rent was initially $1,304 per month but rose twice:
To $1,390 in January 2023 (after a notice served in November 2022), and
To $1,651 in January 2024 (after a notice served in November 2023).
Hill argued that the rent increases were invalid because the notices didn’t properly specify the method of calculation or attach the necessary documents. She asked for a refund of overpaid rent and a Tribunal declaration that the notices were invalid.
The Arguments
The Renter: Claimed that under the amended Residential Tenancies Act, rent increase notices must specify the calculation method. She relied on decisions like Boyce v Mariella and Barlow v Fedele, arguing the first notice didn’t meet the legal standard and that the second notice also failed to comply with the prescribed form.
The Rental Provider: Argued that because the lease began in 2020—before the 29 March 2021 amendments—the stricter requirements didn’t apply. The notices were valid under the transitional provisions.
The Tribunal’s Findings
Member Crocker agreed with the rental provider. The key was section 16 of Schedule 1 of the Residential Tenancies Act, which meant that tenancies that began before 29 March 2021 continued under the old rules.
The first notice (2022) was valid, even though it simply said the increase was “to bring the property to market value.”
The second notice (2023), which included a market rent report, was also valid.
The prescribed form cannot override the Act’s transitional provisions.
The Outcome
VCAT dismissed Hill’s claim. The notices of rent increase were valid, and no compensation was payable.
Key Takeaway for Property Managers
If a rental agreement started before March 2021, transitional provisions apply. Notices of rent increase under those agreements don’t need to include the calculation method in the same way as agreements entered after that date. Substantive compliance with the prescribed form is enough.
