Legal Insights
Monthly CPI: How the Change Affects Your Lease Obligations
The Australian Bureau of Statistics has transitioned to publishing the Consumer Price Index (CPI) on a monthly basis, starting in November 2025. Previously, CPI was released only on a quarterly basis.
CPI is often used to determine rent increases in commercial and retail lease agreements. So how does this transition to monthly CPI affect your lease and how you calculate rent?
Retail Leases Act 2003 does not apply to premises above third storey
Certain retail premises are excluded from the protection and requirements of the Retail Leases Act 2003 (Act), including premises used for the retail provision of services located above the first three floors in a multi-story building (Third Storey Exclusion). A recent VCAT ruling in Aqua Greenland Pty Ltd v Max Therapy School Pty Ltd (Building and Property) [2023] VCAT 449 has considered the Third Story Exclusion.