The following is proof that the Government has known about the problems in the residential parks industry for ages – also that MPs have asked questions on AMHO’s behalf.

Housing Fairness

Dr Amy MacMahon, Greens Member for South Brisbane raised a question in the house at our request. The following is a transcript from the Hansard Reporting for the Queensland State Government.

Dr MacMAHON:
My question is for the Minister for Communities and Housing, Minister for Digital Economy and Minister for the Arts. What are the government’s plans to ensure housing fairness for people living in manufactured homes, including a prohibition on the market review of site rent as a basis for increasing rent?

Ms ENOCH:
I thank the member for that really important question. I am happy to provide the member with more information in a briefing outside of the chamber. A large body of work has been happening with regards to reviewing manufactured homes parks. That has been going on for quite some time. I acknowledge, in particular, the panel that was put together to do that review. Some incredibly dedicated people have helped us by putting forward ideas about where we go to next. Certainly there is a body of work happening and there will be some announcements around that very soon.

I have been listening very carefully to a number of members, particularly from this side of the House, who have a large number of manufactured homes parks in their electorates. In fact, I recently met with the member for Waterford, the member for Bancroft and the member for Logan and I have had conversations with the member for Lytton and others about this matter. I have had some long conversations with the member for Pumicestone also.

This is a very important topic. A body of work is happening and certainly some announcements will be happening soon. I am happy to provide a further briefing directly to the member for South Brisbane with regards to this matter.
2022_02_24_WEEKLY (parliament.qld.gov.au)

Download a copy of this article:  Questions in Parliament

YOUR CPI BASED ANNUAL RENT RISE & Why it may be unfair under the Queensland MHRP Act

We are all used to CPI% site rent increases and are aware that these are worked out with reference to the CPI figure for the stated quarter. However, did you know that there is more than one CPI figure. There are actually three, and they are affected by lists of “Tradable” and “Non-tradable”.

As you can see below Tradable has the most volatile items.

Tradables – food items (meat, fish, fruit, vegetables etc), alcohol (wine & spirits), tobacco, clothing, footwear, transportation (fuel, motor vehicles, parts & accessories), pharmaceuticals and more.

Non-tradables – food items (milk, bread, eggs, etc) beer, clothing services & shoe repair, house rents, electricity, gas & other household fuels, water & sewerage, house purchase, property rates & charges, house repairs & maintenance, Hospital & medical services, transportation (vehicle repair & servicing, urban transport fares), communication, recreation, education, Insurance services, hairdressing & personal care services, childcare and more. This is the CPI which should be used for site rent fee increases.

The MHRP ACT states in the Dictionary section that the “Brisbane all groups” figure must be used for the CPI Indexation rate. However, this index uses all major volatile components of the Australia and Queensland economies and rents are NOT normally included in this rate/group.

After having a conversation with the Queensland Government Statistician, they advised this is a very volatile CPI% figure which rents DO NOT sit under and should not be used and also raised the question – why the department of housing used this wrong CPI% figure? We also asked this question at a meeting with the CHDE who could not give a satisfactory answer as to why this volatile CPI figure had been legislated and appeared to be totally unaware of the consequences of their actions.

On Wednesday 12th October 2022 the Shadow Minister for Housing the Hon. Tim Mander at AMHO’s request asked Housing Minister Hon. Leanne Enoch, the following Question on Notice –

Question 1007 – With reference to the Manufactured Homes (Residential Parks) Act 2003 – Will the Minister provide the rationale for why the ‘Consumer Price Index’ – all groups consumer price index, Brisbane, was chosen as the indexation instrument in the Act?

Answer – The Manufactured Homes (Residential Parks) Act 2003 (the Act) does not prescribe an indexation instrument that must be included in site agreements. The Act requires that a site agreement must state the basis for calculating an increase in site rent but does not specify a particular basis that must be used. Where a site agreement includes an increase in site rent based on the Consumer Price Index (CPI) the Act does not require a particular CPI to be used.

However, the CPI entry in the MHRP Act – Current as at 1st May 2022 Authorised by the Parliamentary Counsel is –
Schedule 2 Dictionary …………………Page 136

CPI means the All Groups Consumer Price Index for Brisbane published by the Australian statistician.

This is why all Park Owners place the All Groups Brisbane CPI in their site agreements. Home owners are forced to pay the highest rate and there is no path to QCAT for relief.

AMHO continues to demand that we must have the CPI, Market Rent Review and Section 71 Special Costs Raising Rents removed from the Act completely. The Annual Site Fee increase should be applied at a flat 1% and no greater to ensure affordability, so that it does not outstrip the fixed incomes of residents and to protect the long-term viability of this housing market sector. Pensions have only risen by more than 2% annually once in the last decade (in 2022 because of inflation increases pensions rose by 4%).

URGENT ACTION IS NEEDED NOW! THE “All Groups Brisbane” CPI FIGURE MUST BE REMOVED FROM THE ACT!

February 2024

Download a copy of this article:  Your CPI Rent Increase