Why it may be unfair under the QLD 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, 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.

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.

Any park who had a MHRP site rent rise using the March 2022 quarter CPI figure, as stated in the ACT, were charged 6% the “All Groups Brisbane” and there is no path to QCAT for relief. In conversation with the Queensland Government Statistician the forecasted estimate which has not yet been confirmed, expected to be published around 14th July, is estimated to come out with a “Brisbane All Groups” figure of between 6.8% – 9.6% depending on economic influences, while the State CPI is forecasted to be 5.2% or higher.

In a time when interest rates on savings accounts are less than 1% and people are struggling with the cost of living, this has provided volatile spikes in the economy which should not be affecting site rents in Manufactured Home Parks, placing more hardship on the many living on fixed incomes.

AMHO has written a submission which has been sent to all parties in Government here in Queensland, requesting an urgent amendment to the ACT.

URGENT ACTION IS NEEDED NOW!

THE “All Groups Brisbane” CPI FIGURE MUST BE REMOVED FROM THE ACT!