Option 7—Limit site rent increases to the higher of CPI or a fixed percentage (for example, 3.5%)

This option provides a level of universal protection and certainty for home owners by requiring that increases cannot be above a prescribed level (this has been set at the higher of CPI or 3.5% for the purpose of the C-RIS). To increase site rents above this level where such increases are justified by operational or repair costs, the park owner needs to have the increase approved by home owners or the Queensland Civil and Administrative Tribunal using the special site rent increase framework in the Act. The long-run savings to the average home owner in the high rent cohort (approximately 36% of survey respondents) from reduced site rent is estimated at $4,400 over a 10-year period. This equals $53,429,904 assuming 10,000 additional sites over the next 10 years. An equivalent cost is experienced by park owners from reduced growth in profitability over the next 10-year period. This option scored 8/9 on its contribution to policy objectives and was selected as a component of the preferred package of reform options.

This is a summary of the impacts of option 7 only. For the full impact analysis, read chapter 7 of the C-RIS (PDF, 3.3 MB).