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Ah only 5%... get it up there I say!

if you raise it $10, you're still liable for the re-letting fee anyway aren't you? How long has the tenant been there, what is the rent currently? Is $20 per week a massive increase? Just do yourself a search on RE.com.au and see if the increase is not warranted.

wow, so they're trying to make you more money and you're worried about their commission? Sure, do your own DD on what the rent should be, but most people on this forum would kill for a property manager that is forward thinking like this and is trying to maximise your investment return.