The Australian Bureau of Statistics released the Consumer Price Index figures for the September 2020 quarter today (for the period 1 July 2020 to 30 September 2020).
Both landlords and tenants may wish to:
- check their leases to see whether a CPI rent review is due using the September quarter CPI; and
- if a rent review is due, apply the correct Index number for that review.
Please carefully consider whether the Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulations, as amended apply to a particular tenant in which case, the rent review may not have an effect on the tenant during the extended response period.
We highlight the key areas of interest for landlords and tenants.
Key areas of interest
ALL GROUPS - BRISBANE
The new All Groups Index number for Brisbane for the September 2020 quarter is 116.2. The Index number for the September 2019 quarter was 115.5 so the new Index number represents an increase of 0.6% over the corresponding quarter for the previous year.
ALL GROUPS – PERTH
The new All Groups Index number for Perth for the September 2020 quarter is 114.1. The Index number for the September 2019 quarter was 112.0 so the new Index number represents an increase of 1.3% over the corresponding quarter for the previous year.
ALL GROUPS – WEIGHTED AVERAGE OF EIGHT CAPITAL CITIES
The new All Groups weighted average Index number for the eight capital cities for the September 2020 quarter is 116.2. The weighted average Index number for the September 2019 quarter was 115.4 so the new Index number represents an increase of 0.7% over the corresponding quarter for the previous year.
ALL GROUPS – CAPITAL CITIES COMPARISON
At the All Groups level, Darwin recorded the only decrease (0.4%) and Hobart again recorded the largest increase (1.7%). All other cities had minimal increases, ranging from 0.3% increase (Sydney) to 1.3% increase (Perth).
A summary of the percentage changes for the capital cities is listed below.
| City | Index for September 2019 | Index for September 2020 | Percentage change |
|---|---|---|---|
| Sydney | 116.5 | 116.8 | 0.3% |
| Melbourne | 115.9 | 116.7 | 0.7% |
| Brisbane | 115.5 | 116.2 | 0.6% |
| Adelaide | 114.5 | 115.7 | 1.0% |
| Perth | 112.6 | 114.1 | 1.3% |
| Hobart | 114.7 | 116.7 | 1.7% |
| Darwin | 111.3 | 110.8 | -0.4% |
| Canberra | 114.3 | 115.4 | 1.0% |
A detailed breakdown of CPI figures is available at the Australian Bureau of Statistics website.
For more information about applying CPI figures to your leases, please contact our Commercial Property and Retail Leasing team.