Leases (Commercial and Retail) Act 2001 (ACT)
Leases (Commercial and Retail) Act 2001
A2001-18
Republication No 26
Effective: 11 July 2024
Republication date: 11 July 2024
Last amendment made by A2024‑33
About this republication
The republished law
This is a republication of the Leases (Commercial and Retail) Act 2001 (including any amendment made under the Legislation Act 2001, part 11.3 (Editorial changes)) as in force on 11 July 2024. It also includes any commencement, amendment, repeal or expiry affecting this republished law to 11 July 2024.
The legislation history and amendment history of the republished law are set out in endnotes 3 and 4.
Kinds of republications
The Parliamentary Counsel’s Office prepares 2 kinds of republications of ACT laws (see the ACT legislation register at type="disc">
authorised republications to which the Legislation Act 2001 applies
unauthorised republications.
The status of this republication appears on the bottom of each page.
Editorial changes
The Legislation Act 2001, part 11.3 authorises the Parliamentary Counsel to make editorial amendments and other changes of a formal nature when preparing a law for republication. Editorial changes do not change the effect of the law, but have effect as if they had been made by an Act commencing on the republication date (see Legislation Act 2001, s 115 and s 117). The changes are made if the Parliamentary Counsel considers they are desirable to bring the law into line, or more closely into line, with current legislative drafting practice.
This republication does not include amendments made under part 11.3 (see endnote 1).
Uncommenced provisions and amendments
If a provision of the republished law has not commenced, the symbol U appears immediately before the provision heading. Any uncommenced amendments that affect this republished law are accessible on the ACT legislation register ( For more information, see the home page for this law on the register.
Modifications
If a provision of the republished law is affected by a current modification, the symbol M appears immediately before the provision heading. The text of the modifying provision appears in the endnotes. For the legal status of modifications, see the Legislation Act 2001, section 95.
Penalties
At the republication date, the value of a penalty unit for an offence against this law is $160 for an individual and $810 for a corporation (see Legislation Act 2001, s 133).
Leases (Commercial and Retail) Act 2001
Contents
Page
Part 1 Preliminary
1 Name of Act 2
3 Notes 2
Part 2 Interpretation
4 Dictionary 3
5 When is a lease entered into to work out timing for obligations under this Act? 3
6 When is a lease taken to be renewed for this Act? 4
7 When are premises commercial or retail premises? 4
8 What are shopping centres? 5
9 What is a change of use lease? 6
10 What is a continuous occupation lease? 6
11 What is an excluded area? 6
Part 3 Application
12 What leases does this Act apply to? 7
13 How to work out the lettable area of premises 9
14 Application to change of use leases 10
15 Is assignment the same as entering into lease for working out application of Act? 10
16 Application of Act to pre-existing leases on registration of units plans 10
17 Disputes 11
18 Disputes about leases no longer in force 14
Part 4 Relationship between act and leases
19 Void provisions 15
20 Included provisions 15
21 Recovery of GST 15
Part 5 Conduct of parties
22 Prohibited conduct in dealings 17
23 Lease costs 18
24 Notice of acceptance of lease offer 19
25 Provision of copy of lease to tenant 19
26 Independent legal advice 20
27 Tenant not required to pay fees 20
Part 6 Negotiations
28 Copy of proposed lease to be provided 21
29 Notice—short minimum term 21
30 Disclosure statements 21
31 Form of disclosure statements 22
32 Return of disclosure statement 22
33 Disclosure statement and acknowledgment not lease or offer 23
34 Notice of material changes 23
35 Notice about handbook 23
36 False or misleading representations 23
37 Compensation for negotiation misrepresentations 24
38 Key money prohibited 24
Part 7 Bonds and guarantees
39 Maximum level of bond 25
40 Guarantees and indemnities 25
41 Bank guarantee as bond 25
42 Dealings with bonds 25
43 Deductions from bonds 26
44 Repayment of bonds 26
45 Return of guarantees 27
Part 8 Rent
Division 8.1 General
46 Discretionary rent review 28
47 Frequency of rent reviews 28
48 Commencement of payment for rent 28
49 Rent setting or review if lease method void 29
50 Lease to state date rent review due 29
51 Rent on renewal 30
52 Market rent—rent reviews, options and renewals 30
53 Valuation to work out market rent 32
54 Working out market rent 32
55 Rent pending valuation—rent reviews and options to extend 33
56 Extension if rent on renewal to be worked out 33
57 Appointment of new valuer if conflict of interest disclosed 33
58 Appointment of new valuer in other cases 34
59 Disclosure of concessions 35
60 Costs of valuations 35
Division 8.2 Turnover rent
61 Combination of base and turnover rent acceptable 35
62 Adjustments to turnover rent 36
63 Frequency of adjustments to turnover rent 36
64 Working out turnover rent 36
Part 9 Outgoings
65 Outgoings—estimates and expenditure statements 38
66 Outgoings—reports 38
67 Adjustment of contributions to outgoings 40
68 Methods of accounting 41
69 Commencement of payment for outgoings 41
70 Recoverable outgoings 41
71 Recovery of outgoings 42
72 Retail areas of shopping centres—waiving auditor’s report 43
Part 10 Building alterations and related matters
73 Employment restriction 44
74 Refurbishment of premises 44
75 Undisclosed contributions 45
76 Capital costs 45
77 Depreciation 45
78 Demolition 45
79 Alterations and refurbishments to or affecting premises 46
80 Emergency alterations 47
81 Compensation for disturbance 47
82 Compensation to reflect any concessions 48
83 Shopping centre enlargement not grounds for compensation 48
84 Damaged premises unable to be used 48
85 Damaged premises able to be used 49
86 Dispute about payment or nonpayment of rent and outgoings 50
87 Dispute about useability of damaged premises 50
88 Notice of lessor’s intentions regarding repair 50
89 Termination by lessor because of damage 51
90 Termination by tenant because of damage 52
91 Compensation for incomplete repair 52
92 Agreement to terminate 53
Part 11 Assignments, subleases and mortgages
93 Provision of disclosure statement by tenant 54
94 Lessor to provide disclosure statement 54
95 Request for consent to assignment, sublease or mortgage 55
96 Lessor may require relevant information and documents 55
97 Mortgagees and head lessors 56
98 Unreasonable refusal by mortgagee or head lessor 57
99 Lessor’s consent or refusal 57
100 Refusal to consent to assignment or sublease 58
101 Refusal to consent to mortgage of lease 60
102 Lessor may recover costs 60
103 Tenant and guarantor released from liability 60
Part 12 Extension, renewal and termination of leases
Division 12.1 Extension
104 Minimum 5 year lease 61
105 Terms of extended leases 63
Division 12.2 Renewal
106 Objects of div 12.2 64
107 Lessor’s intentions about renewal 64
108 Rules of conduct at end of lease term for shopping centre leases 65
109 Implementation of preferential right 66
110 Notice of absence of right of preference 67
111 Certified exclusionary clauses 68
112 Fair dealing between lessor and tenant about renewal of shopping centre lease 68
Division 12.3 Termination generally
113 Other rights etc unaffected by termination 69
114 Termination by agreement 69
115 Abandonment 70
Division 12.4 Termination by tenant
116 Tenant’s right to terminate extended lease 71
117 Right to terminate—no disclosure statement etc 71
118 Failure to notify material change in disclosure statement 71
119 Lessor may contest termination 72
120 Effect of uncontested termination notice 72
121 Effect of contested termination notice 72
Division 12.5 Termination by lessor
122 Procedure for termination of lease by lessor etc 73
123 Confirmation of contested termination 74
124 Confirmation of uncontested termination 75
125 Content of termination orders 75
126 Content of warrants for eviction 76
127 Issue of warrants for eviction 77
Part 13 Retail areas of shopping centres
128 Application of pt 13 78
129 Provision and use of turnover figures 78
130 Statistical information to be available to tenant 79
131 Advertising and promotion levy—new leases 79
132 Advertising and promotion levy—other leases 80
133 Amount not spent to be kept for benefit of tenants 80
134 Non-specific outgoings contribution 81
135 Consultation before redevelopment 81
136 Relocation clauses 82
137 No relocation other than for repairs, refurbishment, redevelopment or extension 83
138 Relocation for repairs, refurbishment, redevelopment or extension 84
139 Changing core trading hours 84
140 Tenants trading outside core trading hours 84
141 Geographical restrictions void 85
142 No termination for inadequate sales 85
Part 14 Dispute resolution
143 Definitions for pt 14 86
144 Jurisdiction 86
145 Applications that may be made 87
146 Timing of rental applications 87
147 Action on receiving application 87
148 Resolution of dispute likely 88
149 Resolution of dispute unlikely 88
150 Hearings 89
151 Procedures 89
152 Transfer to Supreme Court 89
153 Notice of orders 89
154 Costs 89
155 Appeals to Supreme Court 90
Part 15 Miscellaneous
157 References to repealed Act or code 91
157A Approved forms 91
158 Regulation-making power 92
Schedule 1 Working out market rent 93
Dictionary96
Endnotes
1 About the endnotes 101
2 Abbreviation key 101
3 Legislation history 102
4 Amendment history 106
5 Earlier republications 111
Leases (Commercial and Retail) Act 2001
An Act to regulate commercial and retail leases and tenancies, and for other purposes
Part 1Preliminary
Name of Act
This Act is the Leases (Commercial and Retail) Act 2001.
Notes
A note included in this Act is explanatory and is not part of this Act.
NoteSee the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.
Part 2Interpretation
Dictionary
The dictionary at the end of this Act is part of this Act.
Note 1The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act or in other legislation.
For example, the signpost definition ‘certificate of occupancy—see the Building Act 2004, dictionary.’ means that the term ‘certificate of occupancy’ is defined in that dictionary and the definition applies to this Act.
Note 2A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).
When is a lease entered into to work out timing for obligations under this Act?
If something is required to be done under this Act within a stated time before or after someone enters into a lease, the lease is taken to have been entered into when the earliest of the following happens:
(a)the execution of the lease by the parties to it;
(b)the entering into possession of the premises by the tenant under the lease.
When is a lease taken to be renewed for this Act?
(1)A new lease is taken to be a renewal of another lease (the existing lease) for this Act if the new lease is between the same parties as the existing lease and relates to the same premises and the premises are to be put to the same or similar use.
(2)This section does not apply to a renewal mentioned in section 16 (Application of Act to pre-existing leases on registration of units plans).
When are premises commercial or retail premises?
(1)Premises under a lease or proposed lease are commercial premises if—
(a)the permitted use of the premises under the lease or proposed lease is for commercial business; or
(b)if there is nothing in the lease about the use the premises are to be put to—a commercial business may be carried on on the premises under the territory lease for land that includes the premises.
(2)Premises under a lease or proposed lease are retail premises if—
(a)the permitted use of the premises under the lease or proposed lease is for retail business; or
(b)if there is nothing in the lease about the use the premises are to be put to—a retail business may be carried on on the premises under the lease granted under the territory lease for land that includes the premises.
(3)In this section:
commercial business means a business not involving—
(a)the sale or hire of goods by retail; or
(b)the supply of services by retail.
retail business means a business involving—
(a) the sale or hire of goods by retail; or
(b) the supply of services by retail.
What are shopping centres?
(1)A shopping centre is a group of premises where—
(a)at least 5 of the premises are—
(i)retail premises; or
(ii)small commercial premises; or
(iii)premises prescribed by regulation for section 12 (1) (k); or
(iv)a mixture of the premises mentioned in subparagraphs (i) to (iii); and
(b)the premises—
(i)have, or would have if leased, the same lessor or same head lessor; or
(ii)are units in a single unit plan under the Unit Titles Act 2001 and are managed by a single person; and
(c)the premises are—
(i)in a single building; or
(ii)in buildings that adjoin, or are separated only by areas owned by the lessor of the premises; and
(d)the group of premises is promoted as, or generally regarded as making up, a shopping centre, shopping mall, shopping court or shopping arcade.
(2)In addition, a shopping centre is a group of premises prescribed by regulation for this subsection.
What is a change of use lease?
A lease for premises is a change of use lease if—
(a)this Act did not apply to the lease when the lease was entered into; and
(b)the permitted use of the premises changes during the lease term by agreement between the parties; and
(c)this Act would have applied to the lease if the lease had had the changed use when it was entered into.
What is a continuous occupation lease?
(1)A continuous occupation lease is a lease for premises for a term of less than 6 months if—
(a)the tenant was in occupation of the premises with the owner’s consent when the lease was entered into; and
(b)the tenant has been in continuous occupation of the premises with the owner’s consent for at least 6 months.
(2)However, a proposed lease is not a continuous occupation lease.
What is an excluded area?
(1)An excluded area is an area of a shopping centre—
(a)without retail premises, small commercial premises and premises prescribed by regulation for section 12 (1) (k); and
(b)that is geographically distinct (even if it is in the same building) from the areas in the shopping centre containing premises mentioned in paragraph (a).
(2)However, an excluded area does not include a common area within the shopping centre adjacent to premises mentioned in subsection (1) (a).
Part 3Application
What leases does this Act apply to?
(1)This Act applies to a lease for premises, in the ACT, of the following kinds:
(a)retail premises other than large excluded premises;
(b)premises located in the retail area of a shopping centre other than large excluded premises;
(c)small commercial premises;
(d)premises under a lease to an association incorporated under the Associations Incorporation Act 1991, or an entity eligible to be incorporated under that Act, other than premises used for residential purposes;
(e)premises under a lease to an unincorporated charitable entity, other than premises used for residential purposes;
(f)premises under a lease that are used to provide a combination of business accommodation and secretarial services;
(g)premises under a lease that are used as an education and care service or childcare centre;
(h)premises under a lease that are used as a sports centre (other than premises covered by another paragraph);
(i)premises under a lease that are used as an art gallery;
(j)premises under a lease that are used as a gardening supply centre;
(k)premises prescribed by regulation for this subsection.
NoteLarge excluded premises is defined at the end of the section, and small commercial premises is defined in the dictionary.
(2)However, this Act does not apply to a lease if—
(a)the lease is for premises prescribed by regulation for this paragraph; or
(b)the lease is prescribed by regulation for this paragraph; or
(c)the lease is for less than 6 months, unless the lease is a continuous occupation lease.
(3)Also, section 139 (Changing core trading hours) applies in relation to each lease for premises in the retail area of a shopping centre.
(4)For this section, it does not matter whether the lease was entered into outside the ACT or purports to be governed by the law of a jurisdiction other than the ACT.
(5)For this section, a lease includes—
(a) an agreement, whether in writing or not, that provides for the occupation of premises exclusively or otherwise, whether for a fixed term, periodically or at will; and
(b) a sublease or licence.
(6)However, a lease does not include—
(a)an agreement relating to the common area of a shopping centre that would be included only because it provides for someone to use a part of the area; or
(b)a territory lease; or
(c)a land sublease; or
(d)a lease of vacant land; or
(e)a right to occupy land to build on the land.
(7)For this section:
childcare centre includes a childcare centre within the meaning of the Children and Young People Act 2008, section 733.
education and care service—
(a)means an education and care service within the meaning of the Education and Care Services National Law (ACT), section 5; but
(b)does not include a family day care service within the meaning of the Education and Care Services National Law (ACT), section 5.
NoteThe Education and Care Services National Law (ACT) Act 2011, s 6 applies the Education and Care Services National Law set out in the Education and Care Services National Law Act 2010 (Vic), schedule as if it were an ACT law called the Education and Care Services National Law (ACT).
land sublease—see the Planning Act 2023, dictionary.
large excluded premises means premises with a lettable area larger than 1000m2 that are leased to a listed public company or a subsidiary of a listed public company.
How to work out the lettable area of premises
(1)If it is necessary to work out the lettable area of premises for this Act, the premises must be measured in a way, and by someone, agreed between the parties.
(2)However, if the parties cannot agree how the premises are to be measured, the Magistrates Court may, on application by a party, decide the way in which the premises are to be measured or appoint someone to measure the premises.
(3)Unless the Magistrates Court decides otherwise—
(a)the lessor must pay for the first measurement of premises; and
(b)the lessor and tenant must pay equal shares for any further measurement.
Application to change of use leases
This Act applies to a change of use lease from the time of the change of use.
Is assignment the same as entering into lease for working out application of Act?
(1)In working out whether this Act applies to a lease, a person (the assignee) is not taken to have entered into the lease only because the lease was assigned to the person.
(2)However, if this Act applied to the lease immediately before the lease was assigned, subsection (1) has the effect of ceasing the application of this Act to the lease, or to a dispute in relation to the lease, only—
(a)if this Act would not have applied to the lease if the assignee had been the original tenant; and
(b)while that assignee is the tenant.
Application of Act to pre-existing leases on registration of units plans
(1)This section applies if—
(a)a person leases premises (the original lease) that are subsequently registered as part of a units plan under the Unit Titles Act 2001; and
(b)because of the registration, the person enters a new lease (the new lease) that contains essentially the same terms as the original lease apart from any changes made because of the registration.
(2)In working out whether this Act applies to the new lease, the new lease is taken to have been entered into when the original lease was entered into.
Disputes
This Act applies to a dispute about a matter mentioned in table 17, column 1—
(a)the lease or proposed lease, or a provision of the lease or proposed lease, to which the dispute relates, was entered into, extended under an option, renewed or, for a provision only, varied, at or after the corresponding time mentioned in column 2 (if applicable); and
(b)the conduct that caused the dispute complained of happened at or after the corresponding time mentioned in column 3.
Table 17Table of disputes to which Act applies
| item | column 1 type of disputed matter | column 2 time lease entered etc | column 3 time of conduct |
| 1 | key money in relation to a lease or to negotiations for entering into a lease | any time | 1 January 1995 |
| 2 | a discretionary rent review clause of a lease | 1 January 1994 | (a) for a dispute about a discretionary rent review clause that has the effect of reserving to a party to the lease complete discretion about the rate of rent to apply—commencement day; or (b) in any other case—1 January 1995 |
| 3 | a provision of a lease if— (a) the provision was varied or inserted as part of a variation; and (b) the variation happens on or after 1 January 1995; and (c) this Act would apply to the dispute if the lease had been entered into or extended under an option on or after commencement day | any time | 1 January 1995 |
| 4 | a claim by a party to a lease (the first party) that another party to the lease has engaged in unconscionable or harsh and oppressive conduct towards the first party, if the conduct would be a contravention of section 22 (1) | any time | 1 January 1995 |
| 5 | a claim by a party to a lease for recovery of possession, relief against forfeiture or recovery of rent | any time | any time |
| 6 | a claim by a party to a lease that the party is entitled to compensation under section 37, 78, 81, 91 or 136 | any time | commencement day |
| 7 | a matter in relation to which an application may be made under section 57, 58, 84, 85, 87, 98, 99, 105, 123 or 126 | unless this Act states otherwise, any time | unless this Act states otherwise, any time |
| 8 | any other dispute about a lease if the disputed matter is of a kind prescribed by regulation as suitable for resolution under this Act | the date prescribed by regulation in relation to the kind of dispute or, if prescribed by regulation, any time | the date prescribed by regulation in relation to the kind of dispute or, if prescribed by regulation, any time |
| 9 | a claim by a party to a lease that another party to the lease has breached or is breaching this Act if the breach does not give rise to a dispute or claim under another item (other than item 10) | 1 January 1995 | commencement day |
| 10 | any other matter not covered in column 1 of items 1 to 9 in relation to a lease or negotiations for entering into a lease or in relation to the use or occupation of premises to which the lease relates | any time | any time |
Note for item 6
The sections mentioned in the item deal with the following:
s 37—compensation for negotiation misrepresentations
s 78—demolition
s 81—compensation for disturbance
s 91—compensation for incomplete repair
s 136—relocation clauses.
Note for item 7
The sections mentioned in the item deal with the following:
s 57—an application to appoint a new valuer if conflict of interest disclosed
s 58—an application to appoint a new valuer in other cases
s 84—an application about nonpayment of rent or outgoings
s 85—an application about payment of rent or outgoings
s 87—an application for a declaration about useability of premises
s 98—an application about an unreasonable refusal of consent
s 99—an application about the lessor presenting the territory lease to allow endorsement of an assignment or sublease
s 105—an application to vary the terms of a lease extended because it was less than 5 years
s 123—an application for a termination order
s 126—an application for a warrant for eviction.
Disputes about leases no longer in force
A dispute in relation to a lease that is no longer in force may be decided under this Act only if—
(a)the lease was a lease to which this Act applies; and
(b)an application in relation to the dispute is made within 6 years after the day, or the last day, the conduct giving rise to the dispute happened.
Part 4Relationship between act and leases
Void provisions
If a provision in a lease is inconsistent with this Act, the provision is void to the extent of the inconsistency.
Included provisions
(1)If a provision of this Act, other than this section, requires a provision to be included in a lease, the lease is taken for all purposes to contain the provision required to be included.
NoteUnder s 14 (Application to change of use leases), s (1) applies to a change of use lease from the time of the change of use of the lease.
(2)An obligation imposed on a party to a change of use lease that, because of the application of subsection (1), requires the party to take action before the lease is entered into, is taken to be satisfied if the party complies with the obligation to the extent possible within 14 days after this Act starts to apply to the lease.
NoteA disclosure statement is required to be provided under this Act (see s 30), not under a provision taken to be included in the lease under s (1). Accordingly, s (2) does not apply to the provision of disclosure statements.
(3)A lease entered into or renewed, or to which this Act begins to apply, on or after commencement day is taken for all purposes to include the standard provisions prescribed by regulation for this subsection except to the extent that the parties are bound by contrary provisions in the lease, or a contrary agreement (whether written or unwritten).
Recovery of GST
(1)This Act does not prevent a party to a lease requiring another party to pay an amount directly or indirectly attributable to GST payable for a taxable supply made by the party to the other party under the lease.
(2)For this section, it does not matter when the lease was entered into.
(3)In this section:
taxable supply—see the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), dictionary.
Part 5Conduct of parties
Prohibited conduct in dealings
(1)A party to a lease, or a party to negotiations for a proposed lease, must not, in dealings with another party to the lease or negotiations, engage in conduct that is unconscionable or harsh and oppressive.
(2)Without limiting the matters the Magistrates Court may consider when making an order in relation to a dispute arising from an alleged contravention of subsection (1) in relation to unconscionable conduct, the court may consider any of the following matters:
(a)the relative strengths of the bargaining positions of the lessor and tenant;
(b)whether, because of conduct engaged in by a party to the lease or negotiations, the other party was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the party who engaged in the conduct;
(c)whether the party to the lease or negotiations who did not prepare the lease or another document relating to the lease could understand the lease or other document;
(d)whether undue influence or pressure was exerted on, or unfair tactics were used against, a party to the lease or negotiations (or an agent) by the other party to the lease or negotiations (or an agent) in relation to the lease or negotiations;
(e)the circumstances under which the tenant could have acquired a lease on similar terms over similar premises from someone other than the lessor;
(f)the extent to which the lessor’s conduct towards the tenant was consistent with the lessor’s conduct in similar lease transactions between the lessor and similar tenants;
(g)the requirements of this Act;
(h)the extent to which a party to the lease or negotiations (the failing party) unreasonably failed to disclose to the other party (the uninformed party)—
(i)any intended conduct of the failing party that might affect the interests of the uninformed party; or
(ii)any risk to the uninformed party arising from the failing party’s intended conduct that the failing party should have foreseen would not be apparent to the uninformed party;
(i)the extent to which the lessor and the tenant acted honestly.
(3)Without limiting subsection (1), a lessor is taken to have engaged in harsh and oppressive conduct if—
(a)the lessor discriminates against a tenant because the tenant is a member of, or intends to become a member of, an association to represent or protect the interests of tenants, or intends to form such an association; or
(b)the lessor’s conduct has the effect of preventing a tenant from forming or joining, or compelling a tenant to form or join, an association to represent or protect the interests of tenants.
(4)Without limiting subsection (1), someone is not taken to have engaged in unconscionable or harsh and oppressive conduct only because the person applied to the Magistrates Court under this Act.
(5)When applying subsection (2), the Magistrates Court must not have regard to circumstances that were not reasonably foreseeable at the time of the alleged contravention.
Lease costs
(1)Each party to a lease, or negotiations for a lease, must bear the party’s own costs in relation to the preparation of the lease.
(2)However, if a party requires the lease to be registered under the Land Titles Act 1925, the party must pay any fee for registration of the lease.
(3)For this section, if the lessor has a mortgagee, lessor’s costs include any fee for, or incidental to obtaining, the mortgagee’s consent to the lease.
NoteIf the lessor requires the lease to be registered, the lessor must pay the costs under s (2) also.
Notice of acceptance of lease offer
(1)If a person accepts a lease offer, the person must tell the other party to the lease of the person’s acceptance in writing as soon as practicable after acceptance but, in any case, not later than 7 days after acceptance.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
(2)The lessor must take all reasonable steps to hasten registration of a lease under the Land Titles Act 1925 if—
(a)the lease offer is accepted; and
(b)the tenant requires the lease to be registered.
Provision of copy of lease to tenant
If a lease, or a provision of a lease, is in writing signed by the tenant, the lessor must give the tenant a copy of the lease or provision signed by the lessor and tenant—
(a)if the lease is not to be registered—within 21 days after the lease is signed by the lessor and tenant; or
(b)if the lease is to be registered—within 21 days after the lease is registered by the registrar-general.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
Independent legal advice
The lessor must not require the tenant to use the services of a lawyer nominated by the lessor.
Tenant not required to pay fees
If the tenant is required, in contravention of section 26, to use the services of a lawyer nominated by the lessor—
(a)the tenant is not liable to pay fees for the lawyer’s services in relation to the lease; and
(b)the lessor is liable to pay the tenant the amount of any fee paid by the tenant to the lawyer for the services; and
(c)the lessor is liable to pay any unpaid fee for the lawyer’s services that the tenant is not liable to pay because of paragraph (a).
Part 6Negotiations
Copy of proposed lease to be provided
(1)The lessor must give the tenant a copy of the proposed lease as early as practicable in negotiations for the lease.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
(2)Subsection (1) does not require the lessor to give a copy of the proposed lease to a tenant if the tenant has given, or indicated an intention to give, a copy of the proposed lease to the lessor.
Notice—short minimum term
The lessor must tell the tenant in writing as early as practicable in negotiations for a proposed lease that the lease cannot be extended under section 104 (Minimum 5 year lease) if—
(a)the proposed term of the lease is less than 5 years; and
(b)it would be inconsistent with the head lease under which the lessor holds the lease to extend the term.
Disclosure statements
(1)This section applies to proposed leases and options to extend a lease.
(2)The lessor must give the tenant a disclosure statement for the proposed lease at least 14 days before the lease is entered into.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
(3)If the lease contains an option to extend the lease, the tenant may, not earlier than 3 months before the tenant may exercise the option, require the lessor to give the tenant a disclosure statement.
(4)If the tenant requires the lessor to give the tenant a disclosure statement under subsection (3), the lessor must give the statement to the tenant within 14 days.
(5)The time limits mentioned in this section do not apply, or apply as varied, if the tenant provides the lessor with a certificate signed by a lawyer stating that the tenant is aware of the time limits under this section and has chosen to waive the time limits, or to vary them as set out in the certificate.
(6)Subsection (5) does not allow a tenant to require more notice from a lessor than would otherwise be required under this section.
Form of disclosure statements
A disclosure statement must—
(a)if the lessor’s accounting period is not a financial year—state the accounting period; and
(b)contain a written estimate of the outgoings the tenant is required to contribute to under the lease that itemises the outgoings for the first accounting period of the lessor under the lease.
NoteIf a form is approved under section 157A for a disclosure statement, the form must be used.
Return of disclosure statement
If the tenant is given a disclosure statement by the lessor, the tenant must—
(a)note on the statement the date the tenant receives the statement; and
(b)sign the statement; and
(c)return it to the lessor on or before the earlier of—
(i)the time the tenant returns the signed copies of the lease to the lessor; or
(ii)3 months after the lease has been entered into.
Disclosure statement and acknowledgment not lease or offer
Neither the provision of a disclosure statement nor an acknowledgment of receipt of a disclosure statement constitutes a lease or an offer to lease.
Notice of material changes
If the lessor has given the tenant a disclosure statement for a lease and becomes aware of a significant change in the information in the statement before the tenant has signed or extended the lease or entered into possession of the premises, the lessor must quickly tell the tenant of the change in writing.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
Notice about handbook
(1)The lessor must tell the tenant about the approved handbook—
(a)if the lease is a change of use lease—as soon as practicable after the change of use; or
(b)in any other case—as early as practicable in negotiations for the lease (but in any case not later than when the lease is entered into).
(2)For subsection (1), the commissioner for fair trading may approve a handbook (the approved handbook) that helps lessors and tenants to understand this Act.
False or misleading representations
A party to negotiations for a lease (the representer) must not make a representation to another party to the negotiations in the course of the negotiations (including a representation made in a disclosure statement) that the representer knows, or should reasonably know, is false or misleading in a material particular.
Compensation for negotiation misrepresentations
(1)This section applies if—
(a)a party to negotiations for a lease (the representer) makes a representation to another party to the negotiations (the injured party) during the negotiations (including a representation made in a disclosure statement) that the representer knows or should reasonably know is false or misleading in a material particular; and
(b)a lease is entered into because of the negotiations; and
(c)the injured party suffers damage because of the representation.
(2)In addition to any other right the injured party may have, the representer is liable to pay reasonable compensation to the injured party for damage suffered because of the representation.
Key money prohibited
(1)The lessor must not ask for or accept key money for—
(a)the grant of a lease; or
(b)the extension of a lease under an option; or
(c)the renewal of a lease; or
(d)the consent to an assignment, sublease or mortgage of a lease; or
(e)the assignment, sublease or mortgage of a lease.
(2)If key money is accepted by the lessor in contravention of this section, the amount paid, or the value of the benefit given, to or at the direction of the lessor is recoverable as a debt owing by the lessor to the tenant.
(3)Subsection (2) does not limit any other remedy of the tenant for the contravention.
Part 7Bonds and guarantees
Maximum level of bond
(1)The lessor must not require or accept as a bond an amount more than rent payable under the lease for any 3 month period nominated by the lessor.
(2)If the lessor requires payment of more than 3 months rent in advance, any advance payment over 3 months rent is taken, for this section, to be bond.
Guarantees and indemnities
The lessor may accept a guarantee, indemnity or both for the performance of the tenant’s obligations under the lease as well as, or instead of, a bond.
Bank guarantee as bond
The lessor must not unreasonably refuse to accept a bank guarantee in satisfaction of a requirement to provide a bond.
Dealings with bonds
If the lessor requires the tenant to pay a bond—
(a)the bond must be held by the lessor in trust for the tenant in an account that attracts interest; and
(b)the lessor must account to the tenant for interest earned on the bond, but the lessor is entitled to keep the interest and deal with it as an amount paid by the tenant to the lessor as part of the bond; and
(c)the lessor may only use the bond money in accordance with section 43.
Deductions from bonds
The lessor may deduct an amount from a bond paid for a lease only if the amount is owed to the lessor under the lease and deduction of the amount is not contrary to this Act.
Examples of deductions from the lease that are not contrary to this Act
1 the cost of repairs to, or the restoration of, the premises, or goods leased with the premises, necessary because of damage (other than fair wear and tear) caused by the tenant
2 rent in accordance with the lease and recoverable outgoings
3 interest, at a reasonable rate, on an amount payable by the tenant but not paid
4 a reasonable amount (that is not more than the costs incurred) for the cost of any legal fees incurred by the lessor in assigning or transferring the tenant’s rights under a lease
5 the amount of insurance premiums payable by the tenant but not paid.
NoteRecoverable outgoings are outgoings recoverable under s 70 (see dict).
Repayment of bonds
(1)This section applies if—
(a)the lessor has required a bond from the tenant; and
(b)the tenant has provided the bond; and
(c)the lease is not being extended under an option.
(2)The lessor must give the tenant the bond and the interest earned on it, less any amount deducted by the lessor in accordance with this Act, not later than 30 days after the later of the following:
(a)the end of the lease;
(b)the tenant vacating the premises.
Return of guarantees
(1)This section applies if—
(a)the lessor has required a guarantee to secure the tenant’s obligations under the lease; and
(b)the guarantee is not part of the lease; and
(c)the lease is not being extended under an option; and
(d)the tenant has performed the obligations secured by the guarantee.
(2)The lessor must return the guarantee document to the tenant not later than 30 days after the later of the following:
(a)the end of the lease;
(b)the tenant vacating the premises.
Part 8Rent
Division 8.1 General
Discretionary rent review
A discretionary rent review clause in a lease is void.
Frequency of rent reviews
(1)A lease provision is void if it allows a change to be made to rent more than once in each 12 month period after the first anniversary of the commencement of the lease.
(2)However, subsection (1) does not affect—
(a)a sublease provision that allows the sublessor to pass on to the subtenant an increase in the rent of the head lease; or
(b)a provision that sets out the steps (whether by amount or percentage) that rent will increase by at predetermined times during the lease; or
(c)a provision that allows a change to be made to rent directly or indirectly attributable to GST; or
(d)a provision that allows abatement of rent; or
(e)a provision that allows review of rent on the exercise of an option to extend the lease; or
(f)an adjustment to turnover rent allowed under section 63 (Frequency of adjustments to turnover rent).
Commencement of payment for rent
The tenant may pay or provide, and the lessor may request or accept payment for, rent only if—
(a)the rent relates to a period from or after the handing over of possession of the premises; and
(b)unless otherwise agreed, any finish required under the lease to be provided by the lessor has been substantially provided.
Rent setting or review if lease method void
(1)The rent under a lease is market rent if—
(a)the provision of the lease that provides the method of setting or reviewing rent under the lease is void because of section 46 (Discretionary rent review); and
(b)the lessor or tenant has given the other party to the dispute written notice that the method is void; and
(c)the parties cannot, within 14 days after the notice is served, agree on an alternative basis for setting or reviewing the rent that would not be void if it were a provision in the lease.
NoteFor how documents may be served, see the Legislation Act, pt 19.5.
(2)For subsection (1), the parties may use mediation to try to agree on an alternative basis of setting or reviewing the rent.
(3)Subsection (2) does not prevent the parties from using any other method to try to reach agreement.
Lease to state date rent review due
No change may be made to rent, and any purported rent change is void, if the lease does not—
(a)state the date each rent review is due; or
(b)provide a mechanism so the date of each rent review can be easily worked out.
Rent on renewal
(1)This section applies if—
(a)either—
(i)the lessor proposes to renew the lease and makes an offer to the tenant to renew the lease in response to a request under section 107 (Lessor’s intentions about renewal); or
(ii)the lessor gives the tenant preference under section 108 (Rules of conduct at end of lease term for shopping centre leases) by making an offer to the tenant to renew the lease; or
(b)the lessor otherwise makes a renewal offer to the tenant within 12 months after the end of the existing lease.
(2)The lessor must not propose that the rent to be charged initially under the renewed lease exceed the market rent for the premises (other than under an option to renew contained in the lease).
(3)In this section, a proposal or offer to renew the lease does not include an option to renew contained in the lease.
Market rent—rent reviews, options and renewals
(1)Subsection (2) applies in relation to a lease if—
(a)the lease states that market rent is to be charged for premises; or
(b)market rent is to be charged for the premises because of section 49 (Rent setting or review if lease method void).
(2)The lessor or tenant may ask the Magistrates Court to refer a dispute about market rent for the lease for mediation if the lessor and tenant cannot agree on the market rent for the premises within 14 days after either tells the other that it disputes the proposed rent.
(3)The lessor or tenant may also ask the Magistrates Court to refer a dispute about the rent to be paid under a renewal to mediation if—
(a)the lessor—
(i)proposes to renew the lease and makes an offer to renew the lease in response to a request under section 107 (Lessor’s intentions about renewal); or
(ii)gives the tenant preference under section 108 (Rules of conduct at end of lease term for shopping centre leases) by making an offer to the tenant to renew the lease; or
(iii)otherwise makes a renewal offer to the tenant before the end of 12 months after the end of the existing lease; and
(b)the tenant accepts the lessor’s offer to renew the lease subject to the rent for the lease being market rent.
(4)On request under subsection (2) or (3), the Magistrates Court must—
(a)if the court considers that mediation would not be productive or if the parties agree—after consultation with the parties, appoint a valuer to work out the market rent; or
(b)refer the dispute to a mediator for mediation.
Note 1For the making of appointments (including acting appointments), see the Legislation Act, pt 19.3.
Note 2In particular, a person may be appointed for a particular provision of a law (see Legislation Act, s 7 (3)) and an appointment may be made by naming a person or nominating the occupant of a position (see s 207).
(5)If the Magistrates Court refers a dispute for mediation, the mediator must report the result of the mediation to the court not later than 28 days after the dispute was referred.
(6)If the mediator reports to the Magistrates Court that the parties to the lease cannot agree on the market rent, the court must, after consultation with the parties, appoint a valuer to work out the market rent.
(7)In this section, a proposal or offer to renew the lease does not include an option to renew contained in the lease.
Valuation to work out market rent
(1)A valuer appointed under section 52 to work out market rent must report to the Magistrates Court within 28 days after the appointment.
(2)On receiving a report from the valuer, the Magistrates Court must give the parties to the lease a copy of the report.
(3)The market rent worked out by the valuer is the rent under the lease if the parties fail to agree on a different rent to be charged within 14 days after being given a copy of the valuer’s report.
(4)If the parties to a lease enter into an interim agreement about renewing or extending the lease—
(a)the lessor cannot withdraw the offer to renew or extend; and
(b)the tenant cannot withdraw the acceptance of the offer.
(5)However, subsection (4) does not apply if the parties agree, after the interim agreement is entered into, that the offer or acceptance may be withdrawn.
(6)For subsections (4) and (5), an interim agreement is entered into if the tenant has accepted the lessor’s offer to renew or extend the lease subject to the rent being market rent and, under section 52 (3), requested the Magistrates Court to refer a dispute about the rent for mediation.
Working out market rent
A valuer working out the market rent for premises must work out the market rent in accordance with schedule 1.
Rent pending valuation—rent reviews and options to extend
If the rent for premises is not worked out under section 52 (Market rent—rent reviews, options and renewals) or 53 (Valuation to work out market rent) before the extension of the lease is to commence or a rent review is due (the relevant date)—
(a)the rent continues at the rate charged immediately before the relevant date until the rent has been worked out; and
(b)once the rent has been worked out and set, the party who owes the other party the difference between the rent paid and the rent that should have been paid must pay the difference to the party owed within 30 days after the rent is set.
Extension if rent on renewal to be worked out
(1)This section applies if—
(a)the rent to be charged under a renewed lease is being worked out under section 52 (Market rent—rent reviews, options and renewals); and
(b)the lease that is being renewed (the original lease) expires before the rent has been worked out.
(2)The original lease is taken to continue on the same terms until 14 days after the rent for the renewed lease is worked out and the parties are told about it.
Appointment of new valuer if conflict of interest disclosed
(1)If a valuer appointed to work out the market rent for a lease has an interest that could conflict with the proper working out of the market rent for the lease, the valuer must tell the parties to the lease and the Magistrates Court, in writing, about the conflict (including details of the conflict) within 5 days after being appointed to work out the rent.
(2)A party who has been told of a conflict may, within 14 days after being told, apply to the Magistrates Court for the appointment of a new valuer.
(3)On application under subsection (2), the Magistrates Court may disqualify the valuer and appoint a new valuer.
Note 1For the making of appointments (including acting appointments), see the Legislation Act, pt 19.3.
Note 2In particular, a person may be appointed for a particular provision of a law (see Legislation Act, s 7 (3)) and an appointment may be made by naming a person or nominating the occupant of a position (see s 207).
(4)For this section, the valuer is taken to have an interest that could conflict with the proper working out of the market rent for the lease if the valuer has or has recently had an interest, whether direct or indirect, in commercial property ownership or commercial property management.
(5)Subsection (4) does not limit the circumstances in which the valuer has an interest that could conflict with the proper working out of the market rent for the lease.
Appointment of new valuer in other cases
(1)A party to a lease may apply to the Magistrates Court for the appointment of a new valuer if the party has reasonable grounds for believing that—
(a)the valuer appointed to work out the market rent for the lease has failed to comply with section 57; or
(b)the valuer has failed to conduct a valuation in accordance with this Act.
(2)On application under subsection (1), the Magistrates Court may disqualify the valuer and appoint a new valuer.
Disclosure of concessions
(1)If a valuer working out market rent under this Act asks the lessor for information about any relevant concession the lessor has given to another tenant, the lessor must give the valuer the information.
(2)If the lessor complies with subsection (1), the lessor—
(a)is not taken to have committed a breach of confidence or contract by complying with the subsection; and
(b)is not required to provide information that is otherwise readily available to the valuer.
Costs of valuations
(1)The costs of a valuation carried out for this part must—
(a)be paid by or apportioned between the parties as the Magistrates Court directs; or
(b)if the court does not give a direction—be shared equally between the parties.
(2)In deciding whether it is appropriate to give a direction, the Magistrates Court must consider the following:
(a)the reasonableness of the actions of each party;
(b)if the valuer has been disqualified—whether the valuer should be paid in full, in part or not at all.
Division 8.2 Turnover rent
Combination of base and turnover rent acceptable
The lessor may charge a combination of base rent and turnover rent.
Adjustments to turnover rent
(1)A lease that provides for the payment of turnover rent must include a provision to the effect that, within 1 month after receiving a written request by the lessor or tenant for an adjustment, an underpayment or overpayment of turnover rent resulting from actual turnover differing from estimated turnover must be adjusted by the other party.
(2)If a party makes a request under subsection (1), the party must provide the party to whom the request was made with any information reasonably required to make the adjustment.
Frequency of adjustments to turnover rent
Unless the parties to a lease otherwise agree, a party may make a request under a provision included in a lease because of section 62 for adjustment of turnover rent—
(a)only once in the first year of the lease term; and
(b)at intervals of not less than 1 year after the first request for an adjustment under the lease.
Working out turnover rent
In working out turnover rent under a lease, the lessor or tenant must take into account the amount of the tenant’s turnover, less the following amounts:
(a)the amount of a loss incurred in the resale or disposal of goods reasonably purchased in the ordinary course of business from a customer as a trade-in;
(b)deposits and instalments received for a lay-by, hire-purchase or credit sale, that are refunded to a customer;
(c)refunds on a transaction if the proceeds of the transaction have been included as part of turnover;
(d)service, finance or interest charges payable by the tenant to a financier in relation to the provision of credit to customers other than commissions on credit or store cards;
(e)the price of merchandise exchanged between premises of the tenant if the exchange is made only for the convenient operation of the tenant’s business and not to conclude a sale made at, in, from or on the leased premises;
(f)the price of merchandise returns to shippers, wholesalers or manufacturers;
(g)the proceeds of sale of the tenant’s fixtures and fittings after their use in the conduct of the business at or from the premises;
(h)a discount allowed to a customer in the course of business;
(i)written-off uncollected credit accounts;
(j)an amount directly or indirectly attributable to GST;
(k)the net amount paid or payable by the tenant directly or indirectly attributable to a purchase tax, receipt tax or other similar tax imposed at the point of sale or hire of goods or services;
(l)delivery charges;
(m)proceeds of goods sold on consignment, other than a commission kept in relation to a sale;
(n)sales of lottery and similar tickets, other than commissions.
Part 9Outgoings
Outgoings—estimates and expenditure statements
(1)A lease that provides for payment of outgoings by the tenant must include a provision requiring the lessor—
(a)to give the tenant a written estimate (an estimate) of the outgoings the tenant is required to contribute to under the lease at least 1 month before the start of each accounting period of the lessor during the term of the lease; and
(b)to make a written expenditure statement (a statement) available for examination by the tenant within 1 month after the end of the accounting period it relates to.
(2)The estimate must itemise the outgoings using the same item descriptions used in the list of outgoings in the disclosure statement.
(3)The statement must contain details of expenditure by the lessor for outgoings to which the tenant contributes and must itemise the outgoings using the same item descriptions used in the list of outgoings in the disclosure statement.
Outgoings—reports
(1)A lease that provides for payment by the tenant for outgoings must include—
(a)a provision requiring the lessor to give the tenant a written report (a report) within 3 months after the end of the accounting period the report relates to; and
(b)provisions to the effect of subsections (2) to (4).
(2)A report must—
(a)be prepared by an auditor on a cash accounting basis unless the disclosure statement or lease provides for another accounting method to be used; and
Example—accounting method
accrual accounting
(b)contain details of the lessor’s spending on outgoings that the tenant contributed to in the accounting period; and
(c)include a statement by the auditor about whether or not—
(i)the outgoings the tenant contributed to were recoverable outgoings; and
(ii)the outgoings the tenant contributed to (that is, the estimated spending by the lessor on outgoings for the lease) was more than the amount spent by the lessor on outgoings in the accounting period.
(3)A report may relate to more than 1 tenant provided that each tenant it relates to can work out from the report whether or not the amounts paid by the tenant in relation to outgoings were recoverable outgoings.
(4)A report need not comply with subsection (2) (a) and (c) if—
(a)the report only relates to 1 or more of the following outgoings:
(i)water, sewerage and drainage rates and charges;
(ii)other rates and statutory charges;
(iii)insurance;
(iv)a contribution paid to a corporation in accordance with a determination under the Unit Titles (Management) Act 2011, section 78 (General fund—contributions), to the extent that the contribution is used, or is to be used, for an outgoing mentioned in subparagraphs (i) to (iii); and
(b)the report is accompanied by—
(i)copies of receipts for all expenditure by the lessor mentioned in paragraph (a) (i) to (iii); and
(ii)if the report relates to an outgoing mentioned in paragraph (a) (iv)—a copy of the minutes of the owners corporation that state the extent to which the contributions to the general fund are to be, or have been, used for an outgoing mentioned in paragraph (a) (i) to (iii), or equivalent evidence of the use of the contributions.
Adjustment of contributions to outgoings
(1)If a lease requires the tenant to contribute to outgoings, the lease must include a provision to the effect that, within 3 months after the end of each period for which the tenant contributes to outgoings under the lease (the payment period), there must be an adjustment between the lessor and the tenant to take account of an underpayment or overpayment (if any) by the tenant in relation to the outgoings.
(2)The lease must also provide that the adjustment is the difference between—
(a)the amount paid by the tenant for the estimated expenditure by the lessor on outgoings during the payment period; and
(b)the amount spent by the lessor for recoverable outgoings during the payment period to the extent that the lessor properly and reasonably incurred the expenditure.
(3)In subsection (2) (b):
amount spent—if a lessor is using an accrual method of accounting, the amount spent by a lessor during a period includes a debt accrued by the lessor during the period.
Methods of accounting
(1)If a lease requires accounts to be produced for outgoings, the lease may include a provision (a method provision) stating whether the accounts must be produced using a cash or accrual method of accounting.
(2)If the lease does not include a method provision, accounts for outgoings under the lease must be produced using a cash method of accounting until the lessor tells the tenant otherwise in writing.
Commencement of payment for outgoings
The tenant may pay or provide, and the lessor may request or accept payment for, outgoings only if—
(a)the outgoings relate to a period from or after the handing over of possession of the premises; and
(b)unless otherwise agreed, any finish required under the lease to be provided by the lessor has been substantially provided.
Recoverable outgoings
(1)The lessor may only recover the following outgoings in relation to leased premises from the tenant:
(a)an amount that is a reasonable expense directly related to the operation of, or a reasonable expense of repairing or maintaining—
(i)for premises located in the retail area of a shopping centre—an area used for or in connection with the retail area of the shopping centre that contains the premises; or
(ii)in any other case—the building that contains the premises;
(b)rates, taxes, levies or other statutory charges payable by the lessor because the lessor is the lessor or occupier of the building that contains the premises, or the lessor of the land on which the building is located;
(c)in relation to premises located in the retail area of a shopping centre—an amount that is a reasonable cost of promoting the premises or centre;
(d)an outgoing for expenditure incurred in obtaining statistical information.
(2)However, if the accounting system used by the lessor is a cash accounting system, the lessor may only recover from a tenant an outgoing mentioned in subsection (1) (a) or (b) if the expenditure is made during the term of the lease.
(3)Also, a lessor may not recover an outgoing from a tenant in relation to premises if the lessor has already recovered the outgoing from a previous tenant of the premises under a different accounting system.
(4)Further, subsection (1) (a) (ii) does not allow the lessor to recover from the tenant an outgoing in relation to premises that are usually leased but are currently unleased.
Recovery of outgoings
The tenant under a lease is liable to pay an amount to the lessor for outgoings only if—
(a)the nature of the outgoings was stated in the disclosure statement provided to the tenant; and
(b)the lease states—
(i)the outgoings that may be recovered by the lessor; and
(ii)how the amount of the outgoings will be worked out and apportioned to the tenant; and
(iii)how the outgoings or part of them may be recovered by the lessor from the tenant; and
(c)the outgoings are recoverable outgoings.
Retail areas of shopping centres—waiving auditor’s report
(1)If a majority of the tenants in the retail area of a shopping centre agree to waive the requirement for the preparation of an auditor’s report dealing with outgoings for a provision included in a lease because of section 65 (Outgoings—estimates and expenditure statements), the lessor is not required to provide an auditor’s report under that provision for any tenant in the shopping centre—
(a)for the period agreed by the tenants; or
(b)if no period is agreed by the tenants—for the accounting period in which the agreement is reached and subsequent accounting periods, until a majority of the tenants agree otherwise.
(2)For subsection (1)—
(a)a tenant is not taken to have agreed to waive the requirement for the preparation of an auditor’s report only because the lease includes a term agreeing to the waiving of the requirement; and
(b)to work out whether a majority of the tenants agree to waive the requirement for the preparation of an auditor’s report, 1 vote is counted for each lease for premises in the retail area of the shopping centre.
Part 10Building alterations and related matters
Employment restriction
(1)A lease provision is void if it limits, or has the effect of limiting, a tenant’s right to employ people chosen by the tenant.
(2)Subsection (1) does not prevent a lease containing provisions to the effect of any of the following:
(a)a provision specifying reasonable minimum standards of competence and behaviour for people employed on the premises or others working on the premises;
Example—others
contractors
(b)a provision prohibiting work being carried out on named property of the lessor;
(c)a provision requiring the tenant to comply with the requirements of an industrial award, industrial agreement or enterprise agreement affecting the shopping centre containing the premises.
Example—enterprise agreement
a construction site agreement
Refurbishment of premises
A lease provision is void if it requires the tenant to refurbish or refit premises, but does not give the details necessary to generally indicate the nature, extent and timing of the refurbishment or refit.
Undisclosed contributions
A lease provision is void if it requires the tenant to pay for or contribute towards the cost of a finish, fixture, fittings, equipment or service, unless the requirement to make the payment or contribution was in the disclosure statement.
Capital costs
A lease provision is void if it requires the tenant to pay an amount for the capital costs—
(a)of the building containing the leased premises; or
(b)for premises in the retail area of a shopping centre—of a building in the shopping centre or an area used in association with a building in a shopping centre.
Depreciation
A lease provision is void if it requires the tenant to pay an amount for depreciation.
Demolition
A lease that provides for termination of the lease because of the proposed demolition of the building containing the premises must include provisions to the effect of all of the following:
(a)the lease cannot be terminated because of the proposed demolition unless the lessor has given the tenant sufficient details of the proposed demolition to indicate a genuine proposal to demolish the building within a reasonable time after the lease is to be terminated;
(b)the lease cannot be terminated by the lessor because of the proposed demolition unless—
(i)if the lease is for a term of up to 1 year—the lessor has given the tenant at least 3 months written notice of the lessor’s intention to terminate; or
(ii)in any other case—the lessor has given the tenant at least 6 months written notice of the lessor’s intention to terminate;
(c)if the lease is terminated because of the proposed demolition before the end of the term of the lease—the lessor must pay the tenant reasonable compensation for any loss of the tenant arising from the termination of the lease whether or not the lessor goes ahead with the demolition of the building;
(d)in working out reasonable compensation for paragraph (c), regard must be had to any concession given to the tenant because of the existence in the lease of the clause allowing for termination because of the proposed demolition.
Example—concession
reduced rent
Alterations and refurbishments to or affecting premises
(1)Subject to section 80, the lessor must tell the tenant about alterations to, or the refurbishment of, the shopping centre or building containing the tenant’s premises if the tenant is likely to be materially affected by the alterations or refurbishment.
(2)The lessor is taken to have told the tenant about an alteration or refurbishment if notice of the alteration or refurbishment—
(a)is in writing; and
(b)includes details of the proposed alterations or refurbishment and the measures (if any) that will be taken by the lessor to minimise the effect of the alterations or refurbishment on the tenant’s premises; and
(c)is given to the tenant at least 2 months before the alteration or refurbishment starts.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
Emergency alterations
If an alteration or refurbishment results from an emergency, the lessor must give the affected tenant notice of the alteration or refurbishment that is reasonable in the circumstances.
Compensation for disturbance
(1)The lessor is liable to pay the tenant reasonable compensation for loss or damage (other than nominal loss or damage) suffered by the tenant if the lessor—
(a)materially inhibits access by the tenant to the premises; or
(b)takes action that would materially inhibit or alter the flow of customers to the premises; or
(c)fails to fix a breakdown of plant or equipment under the lessor’s care and maintenance as soon as practicable; or
(d)for premises located in the retail area of a shopping centre—does not adequately clean, maintain or repair the shopping centre (including common areas); or
(e)otherwise adversely affects the trade of the tenant by the lessor’s conduct without reasonable cause, whether by act or omission.
(2)The lessor is not liable to pay the tenant compensation in relation to an action of the lessor mentioned in subsection (1) (a) or (b) if—
(a)the action was a reasonable response to an emergency or in compliance with a statutory requirement or a lawful direction of a government entity; and
(b)the emergency was not caused by, or the requirement or lawful direction did not apply because of, any neglect or failure of the lessor.
Compensation to reflect any concessions
In working out reasonable compensation for section 81, any concession given to the tenant based on the disturbance, or likelihood of disturbance, of the tenant’s trade must be taken into account.
Example—concession
reduced rent
Shopping centre enlargement not grounds for compensation
A tenant of premises in the retail area of a shopping centre is not entitled to compensation under section 81 (Compensation for disturbance) only because—
(a)the shopping centre is enlarged; or
(b)there is a change in the mix of tenants who hold leases in the shopping centre.
Damaged premises unable to be used
(1)This section applies if—
(a)leased premises are, or the building containing the premises is, damaged; and
(b)the premises cannot be used for their normal purpose because of the damage.
(2)The tenant is not required to pay rent or outgoings under the lease while the premises cannot be used unless the Magistrates Court decides otherwise.
(3)The lessor may apply to the Magistrates Court for an order for payment (in full or in part) of rent or outgoings if—
(a)the damage to the premises or building was caused (fully or partly) by an act or omission of the tenant; or
(b)the lessor is unable to claim insurance for the damage because the tenant has invalidated the lessor’s insurance.
(4)This section does not apply to the extent (if any) to which the lessor and tenant agree to the payment, or reduced payment, of rent or outgoings after the premises are, or the building is, damaged.
Damaged premises able to be used
(1)This section applies if—
(a)leased premises are, or the building containing the premises is, damaged; and
(b)the tenant can use the premises (fully or in part) for their normal purpose despite the damage.
(2)The tenant must not refuse to pay rent or outgoings while the premises are, or the building is, damaged unless the Magistrates Court decides otherwise.
(3)The tenant may apply to the Magistrates Court for an order for payment of a lower amount of rent or outgoings than is required by the lessor.
(4)This section does not apply to the extent (if any) to which the lessor and tenant agree to the payment, or reduced payment, of rent or outgoings after the premises are, or the building is, damaged.
Dispute about payment or nonpayment of rent and outgoings
(1)This section applies if—
(a)the lessor applies to the Magistrates Court about nonpayment under section 84 (Damaged premises unable to be used); or
(b)the tenant applies to the court about payment of rent under section 85.
(2)The Magistrates Court may decide the application on its merits and is not bound by section 84 or section 85.
Dispute about useability of damaged premises
(1)If there is a dispute about whether leased premises have been damaged, or the building containing the premises has been damaged, so that the leased premises cannot be used for their normal purpose, a party to the lease may apply to the Magistrates Court for a declaration about whether the premises can or cannot be used for their normal purpose because of the damage.
(2)For this section, premises can be used for their normal purpose if they can be used fully or partly for their normal purpose.
(3)This section does not apply in relation to the use of premises during a period (if any) for which the lessor and tenant have agreed to the payment, or reduced payment, of rent or outgoings.
Notice of lessor’s intentions regarding repair
If leased premises are, or a building that contains the premises is, damaged in a material way, the lessor must tell the tenant in writing, within 2 months after the day, or last day, the damage happened—
(a)that the lessor reasonably considers repair of the premises or building is impracticable, and intends not to repair the premises or building; or
(b)that the lessor intends to repair or reinstate the premises or building between starting and finishing dates approximately stated in the notice.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
Termination by lessor because of damage
(1)The lessor may terminate a lease by giving at least 30 days notice of his or her intention to terminate if—
(a)the premises have, or a building containing the premises (the building) has, been damaged; and
(b)the lessor has told the tenant under section 88 (a) that the lessor does not intend to repair the premises or building; and
(c)either—
(i)the premises or building has to be, or has been, demolished because of the damage; or
(ii)the damage extends to more than 50% of the premises or building; or
(iii)it is impracticable for the lessor to repair or reinstate the premises or building, acting reasonably and promptly, within 1 year after the day, or last day, the damage happened; or
(iv)the premises cannot be used because of the damage, the lease is due to expire within 2 years after the day, or last day, the damage happened and the lease contains no option for extension.
(2)No compensation is payable for termination under this section.
Termination by tenant because of damage
(1)The tenant may terminate a lease by giving at least 30 days notice of the tenant’s intention to terminate if—
(a)the premises have, or a building containing the premises (the building) has, been damaged in a material way; and
(b)either—
(i)the lessor tells the tenant under section 88 (a) (Notice of lessor’s intentions regarding repair) that the lessor does not intend to repair the damage; or
(ii)the lessor tells the tenant under section 88 (b) that the lessor intends to repair or reinstate the premises or building (the plan) but unreasonably departs from, or takes no reasonable action in relation to, the plan; or
(iii)the premises will not be able to be used for their normal purpose within a reasonable period, or for more than 1 year, after the day, or last day, the damage happened.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
(2)No compensation is payable for termination under this section.
Compensation for incomplete repair
(1)This section applies if—
(a)the lessor fails to comply with section 88 (Notice of lessor’s intentions regarding repair); or
(b)the tenant relies on the lessor’s advice under section 88 that the lessor intends to repair damage to premises or to a building containing the premises.
(2)The lessor is liable to pay the tenant compensation for loss or damage (other than nominal loss or damage) suffered because of the lessor’s failure—
(a)to comply with section 88; or
(b)to repair the premises within the period the lessor told the tenant the premises would be repaired, or within a reasonable time after the end of that period.
Agreement to terminate
Section 88 (Notice of lessor’s intentions regarding repair), section 89 (Termination by lessor because of damage) and section 91 do not prevent the parties to a lease terminating the lease by agreement if—
(a)the premises are, or a building containing the premises is, damaged or destroyed; and
(b)the agreement is reached after the premises or building are damaged or destroyed.
Part 11Assignments, subleases and mortgages
Provision of disclosure statement by tenant
(1)Before asking for the lessor’s consent to assign or sublet a lease under section 95 (Request for consent to assignment, sublease or mortgage), the tenant must give a prospective assignee or subtenant a copy of the disclosure statement (if any) given to the tenant in relation to the lease, together with details of any material change that has happened in the information contained in the statement since it was given to the tenant.
NoteFor how documents may be given, see the Legislation Act, pt 19.5.
(2)Subsection (1) only requires a tenant to give details of a material change of which the tenant is aware or could reasonably be expected to be aware.
Lessor to provide disclosure statement
If the tenant does not have, or have access to, a copy of a disclosure statement required to be given under section 93—
(a)the tenant may ask the lessor to give the tenant a copy of the disclosure statement for the lease to allow the tenant to provide a copy to a proposed assignee or subtenant; and
(b)the lessor must not, without reasonable excuse, fail to comply with the request within 14 days after receiving it.
Request for consent to assignment, sublease or mortgage
If the tenant complies with section 93 (Provision of disclosure statement by tenant), the tenant may, in writing, ask the lessor to agree to—
(a)the assignment of the lease; or
(b)the grant by the tenant of a sublease for the premises; or
(c)the mortgage of the lease.
Lessor may require relevant information and documents
(1)Within 14 days after receiving a request under section 95, or after a further period agreed by the parties, the lessor may, in writing, ask the tenant to provide the lessor with further information or documents.
(2)If the tenant’s request is for consent to an assignment or sublease, the lessor may only request 1 or more of the following:
(a)information about the financial standing of the prospective assignee or subtenant, including details of any approved finance of the prospective assignee or subtenant;
(b)information about the financial standing of any prospective guarantor for the prospective assignee or subtenant;
(c)a certificate of occupancy for the premises;
(d)information about the business skills of the prospective assignee or subtenant;
(e)information about the proposed use of the premises by the prospective assignee or subtenant;
(f)references relating to the ability of the prospective assignee or subtenant to operate the business, or proposed business, on the premises.
(3)If the tenant’s request is for consent to the mortgage of the lease, the lessor may only request 1 or more of the following:
(a)information about the identity and financial standing of the proposed mortgagee;
(b)details of the loan or other obligation to be secured by the mortgage including, if applicable, the amount of the loan, the purpose to which it is proposed the loan amount be used, the term of the loan, the repayment schedule for the loan and the powers that may be exercised by the mortgagee under the mortgage.
Tenants trading outside core trading hours
(1)The tenant may trade outside the core trading hours of the shopping centre with the lessor’s agreement provided that the tenant meets the costs associated with opening and operating the shopping centre for the additional hours, including any costs of advertising and promotion.
(2)A cost met by the tenant under subsection (1) must be proportionate having regard to the costs of opening and operating the shopping centre and the number of other tenants who are trading outside the core trading hours with the tenant.
Geographical restrictions void
(1)A provision of a lease that has the effect of preventing or restricting the tenant from carrying on business outside the shopping centre containing the tenant’s premises during, or after the end of, the lease is void.
(2)Subsection (1) does not prevent a lease from containing a provision that prevents the use of the name of a shopping centre in connection with a business carried on outside the shopping centre.
No termination for inadequate sales
A provision in a lease that allows the lessor to terminate the lease because the tenant or the business of the tenant has failed to achieve adequate or stated sales or turnover performance is void.
Part 14Dispute resolution
Definitions for pt 14
In this part:
dispute, in relation to an application, means the dispute to which the application relates.
party, to an application, means a party to the proceeding on the application.
Jurisdiction
(1)The Magistrates Court has jurisdiction to hear and decide applications under this Act.
(2)The jurisdiction of the Magistrates Court for this Act is not affected by the amount claimed in an application and the Magistrates Court is not limited in any amount it can order to be paid in relation to the application.
(3)The Magistrates Court may, when acting within the jurisdiction given under this Act—
(a)exercise any power that could be exercised by the court under the Magistrates Court Act 1930, chapter 4 (Civil proceedings); and
NoteA reference to an Act includes a reference to the statutory instruments made or in force under the Act, including regulations and rules (see Legislation Act, s 104).
(b)exercise any other power necessary or convenient for the exercise of this jurisdiction, including the power to—
(i)make preliminary and procedural orders and give interlocutory directions; and
(ii)make orders to enforce relief, redress or a remedy.
Applications that may be made
(1)An application may be made in relation to a dispute to which this Act applies.
NoteSection 17 sets out the disputes to which this Act applies.
(2)An application in relation to a dispute to which this Act applies cannot be made under the Magistrates Court Act 1930, chapter 4 (Civil proceedings)
NoteA reference to an Act includes a reference to the statutory instruments made or in force under the Act, including regulations and rules (see Legislation Act, s 104).
Timing of rental applications
(1)An application by a tenant in relation to a rent increase must be made at least 28 days before the increase is proposed to take effect, unless the Magistrates Court waives this requirement.
(2)However, the Magistrates Court may hear an application relating to a proposed rental rate increase made less than 28 days before the day the increase is proposed to take effect, if satisfied that—
(a)the application is late because of special circumstances; and
(b)to hear the application would not place the lessor in a significantly worse position than the lessor would have been had the tenant applied at least 28 days before the day the increase is proposed to take effect.
Action on receiving application
(1)The Magistrates Court must hold a case management meeting with the parties for each application it receives.
(2)The purpose of the case management meeting is—
(a)to assess the likelihood of the parties resolving the dispute before the proceeding is heard; and
(b)to direct the hearing of the application as a result of the assessment.
Resolution of dispute likely
If, at a case management meeting for an application, the Magistrates Court considers it likely that the parties may resolve the dispute, the court—
(a)must promote the settlement of the dispute (either at the meeting or by referral to other dispute resolution mechanisms); and
(b)may adjourn the proceeding to a stated date, or for a stated period, to allow the parties to settle the dispute.
Examples of other dispute resolution mechanisms
1 mediation
2 conciliation
3 facilitation
4 early neutral evaluation
5 arbitration.
Resolution of dispute unlikely
(1)If, at a case management meeting for an application, the Magistrates Court considers it unlikely that the parties may resolve the dispute, the court must give directions about how the proceeding will be conducted.
(2)In deciding what direction to give for the proceeding, the Magistrates Court must endeavour to facilitate—
(a)hearing the dispute as quickly as possible; and
(b)keeping costs for the parties as low as practicable.
Hearings
The Magistrates Court must, when hearing a proceeding—
(a)act as quickly as possible; and
(b)ensure, as far as practicable, that all relevant material is disclosed to the court to allow it to decide the matters in dispute.
Procedures
(1)The Magistrates Court may decide its own procedures.
(2)Without limiting subsection (1), the Magistrates Court may require evidence or argument to be provided in writing and may decide the matters on which it will hear oral evidence or argument.
Transfer to Supreme Court
The Magistrates Court may transfer a proceeding to the Supreme Court if the Magistrates Court considers it appropriate.
Notice of orders
The Magistrates Court must give each party to a proceeding written notice setting out the terms of any order made at the end of the hearing within 14 days after making the order.
Costs
The parties in a proceeding under this Act must bear their own costs unless the Magistrates Court or Supreme Court makes an order about costs.
Appeals to Supreme Court
A party to a proceeding under this Act may appeal to the Supreme Court on a question of law or fact from a decision of the Magistrates Court in the proceeding.
NoteSee the Court Procedures Rules 2006, r 5052 (Appeals to Supreme Court—general powers) and r 5103 (Appeals to Supreme Court—time for filing notice of appeal).
Part 15Miscellaneous
References to repealed Act or code
(1)In any Act, statutory instrument or document, a reference to the repealed Act or the code is, in relation to anything dealt with in this Act, a reference to this Act.
(2)In any Act, statutory instrument or document, a reference to a particular provision of the repealed Act or code is, in relation to anything dealt with in this Act, a reference to the corresponding provision of this Act.
(3)In this section:
code means the code of practice approved under the repealed Act, section 75 as in force immediately before commencement day.
repealed Act means the Tenancy Tribunal Act 1994 as in force immediately before commencement day.
157AApproved forms
(1)The Minister may approve forms for this Act.
(2)If the Minister approves a form for a particular purpose, the approved form must be used for that purpose.
NoteFor other provisions about forms, see the Legislation Act, s 255.
(3)An approved form is a notifiable instrument.
NoteA notifiable instrument must be notified under the Legislation Act.
Regulation-making power
(1)The Executive may make regulations for this Act.
NoteA regulation must be notified, and presented to the Legislative Assembly, under the Legislation Act.
(2)A regulation may provide that words used in a lease, or a mortgage for leased premises have a wider meaning than that set out in the lease or mortgage, and may prescribe the meaning.
Schedule 1Working out market rent
(see s 54)
1.1Market rent, of premises, is the amount that could reasonably be expected to be paid in rent for vacant possession of the premises on the open market if—
(a)the premises were let by a willing but not anxious lessor to a willing but not anxious tenant; and
(b)both parties acted knowledgeably and prudently; and
(c)the use to which the premises may be put under the lease is taken into consideration; and
(d)the amount is worked out in accordance with this schedule.
1.2The valuer must take into account the following in relation to the premises:
(a)the gross cost of occupancy;
(b)market evidence about comparable premises, including the level of incentives or inducements to lease (if any) being offered in the marketplace for comparable premises;
(c)the estimated gross occupancy costs that would be agreed, on valuation, between a willing lessor and a willing tenant in an arms length transaction, after proper marketing of the premises, if the parties acted knowledgeably, prudently and without compulsion;
(d)any covenant or restriction on the use of the premises or any covenant on adjacent premises that run with the premises;
(e)court precedents about valuation practice;
(f)the proposed arrangements for rent review;
(g)any building service or improvement offered by the lessor (other than a service or improvement that can be removed or withdrawn by an outgoing tenant or someone other than the people for whom market rent is being worked out);
(h)the condition of the premises, as provided by the lessor;
(i)particulars required to be disclosed in a disclosure statement that affect or potentially affect the rental value of premises, including particulars about a tenant’s obligations, costs or responsibilities;
(j)the terms of the lease or proposed lease;
(k)any other relevant market evidence.
1.3The valuer must not take into account the following in relation to the premises:
(a)a special interest or concern of the lessor or tenant;
(b)the tenant’s goodwill;
(c)the tenant’s fixtures and fittings;
(d)an advantage or disadvantage arising from the current lease agreement.
1.4Section 1.2 and section 1.3 do not limit the matters that the valuer may take into account in relation to the premises.
1.5A party to the lease may, on the party’s own initiative, make a submission to the valuer within 14 days after the appointment of the valuer and, if the party makes a submission within that time, the valuer must consider the submission.
1.6The valuer must, in writing, tell each party to the lease of the party’s right to make a submission in relation to the valuation.
1.7A notice must require the parties to make their submissions within 14 days after the date of the notice and tell the parties that, if they do not make a submission in that time, a valuation may be made without their submission.
1.8The valuer may proceed with a valuation of a lease even if a party to the lease does not make the requested submission.
1.9The valuation must give detailed reasons for the valuation and must include particulars of the matters that the valuer took into consideration in working out the valuation.
1.10The valuation must include particulars of any concession or inducement disclosed to the valuer.
1.11For this schedule:
gross cost of occupancy, for premises, means the rent for the premises, plus recoverable outgoings (other than promotional levies or advertising commitments required by the lease).
Dictionary
(see s 4)
Note 1The Legislation Act contains definitions and other provisions relevant to this Act.
Note 2For example, the Legislation Act, dict, pt 1, defines the following terms:
·exercise
·GST
·Magistrates Court
·territory lease.
accounting period, for a lessor, means a financial year or other period included in a disclosure notice under section 31 (Form of disclosure statements) or otherwise agreed between the parties.
bond means an amount paid or payable by a tenant as security for the performance of his or her obligations under a lease.
certificate of occupancy—see the Building Act 2004, dictionary.
change of use lease—see section 9.
commencement day means 1 July 2002.
commercial premises—see section 7.
conduct, in relation to a lease or to negotiations for the entering into of a lease, means an act or omission in relation to the lease or negotiations.
Examples of acts and omissions in relation to leases or negotiations
1 making a request or demand of a person in relation to the lease or negotiations
2 taking action to enforce the terms of the lease
3 an action or omission that causes a breach of the lease
continuous occupation lease—see section 10.
core trading hours, for a shopping centre, means the hours when retail premises in the shopping centre are generally required to be open for business, whether the requirement is imposed by or under the lease or by or under another agreement or arrangement between the lessor and tenant or is imposed in another way.
demolition, in relation to premises, includes any repair, renovation or reconstruction of a building containing the premises that cannot be carried out practicably without vacant possession of the premises.
disclosure statement means a disclosure statement under section 30.
discretionary rent review clause means a provision in a lease that—
(a)provides for rent to be set or changed in accordance with whichever of 2 or more methods of calculating the change would result in the highest rent; or
(b)has the effect of reserving to a party to the lease a discretion as to which of 2 or more methods of calculating initial rent or a change to rent is to apply; or
(c)has the effect of reserving to a party to the lease complete discretion as to the rate of rent to apply; or
(d)has the effect of preventing, or giving a person the power to prevent, a decrease if the provision for determining initial rent or rent variations otherwise operates in a way that rent might decrease.
dispute—
(a)for this Act generally—means a dispute to which this Act applies under section 17; and
(b)in relation to an application, for part 14 (Dispute resolution)—see section 143.
entered into, for a lease—see section 5.
excluded area—see section 11.
extend, under an option, includes renew under the option.
initial rent means the rent set at the beginning of a lease or renewal of a lease.
key money means an amount paid by or on behalf of a tenant to, or at the direction of, a lessor, or any benefit given to, or at the direction of, a lessor, but does not include—
(a) rent; or
(b) a payment for the goodwill or other assets of a business genuinely operated by the lessor that is sold or to be sold by the lessor to the tenant; or
(c) a bond or security deposit, or a guarantee by way of security; or
(d) an amount payable on account of outgoings; or
(e) a reasonable amount payable to someone for attendances on the tenant in relation to the preparation of documents that are relevant to a lease; or
(f) any reasonable amount payable to a lessor for goods and services provided, or to be provided, to the tenant; or
(g) an amount allowed to be paid under this Act.
lease means a lease, within the meaning of section 12, to which this Act applies under that section.
NotePt 13 only applies to leases for premises in retail areas of shopping centres.
lessor, of premises, means a person who grants a right to occupy the premises under a lease, and includes—
(a) a sublessor; and
(b) a person who receives the right to lease the premises by assignment from the lessor or by operation of law; and
(c) in relation to negotiations for a lease—a prospective lessor.
lettable area, of premises, means the area of the premises worked out in accordance with section 13 (How to work out the lettable area of premises).
market rent, of premises—see schedule 1 (Working out market rent).
normal purpose, of leased premises that have been damaged, means the way the premises were ordinarily used by the tenant before they were damaged if the use was allowed under the lease.
option, for a lease, means a right given under the lease for—
(a) the extension of the term of the lease; or
(b) the renewal of the lease for a further term.
party, to an application, for part 14 (Dispute resolution)—see section 143.
premises, for a lease, are the premises covered by the lease.
recoverable outgoings means outgoings recoverable under section 70.
renewal, of a lease—see section 6.
rent includes a component of rent.
rent review includes a change to rent payable on the exercise of an option under a lease, but does not include a predetermined rent change.
retail area means the area of a shopping centre other than an excluded area.
retail premises—see section 7 (2).
shopping centre—see section 8.
small commercial premises means commercial premises with a lettable area of no more than 300m2.
tenant, of premises, means a person who has the right to occupy the premises under a lease, and includes—
(a) a subtenant; and
(b) a person who receives the right to occupy the premises by assignment from the tenant or by operation of law; and
(c) in relation to negotiations for a lease—a prospective tenant.
termination notice means a notice under section 117 (Right to terminate—no disclosure statement etc) or section 118 (Failure to notify material change in disclosure statement).
turnover includes gross takings, gross receipts and gross income.
turnover rent means rent, or the part of rent, based on the tenant’s turnover.
valuer means a person who is competent in retail and commercial market rental valuations.
Endnotes
About the endnotes
Amending and modifying laws are annotated in the legislation history and the amendment history. Current modifications are not included in the republished law but are set out in the endnotes.
Not all editorial amendments made under the Legislation Act 2001, part 11.3 are annotated in the amendment history. Full details of any amendments can be obtained from the Parliamentary Counsel’s Office.
Uncommenced amending laws are not included in the republished law. The details of these laws are underlined in the legislation history. Uncommenced expiries are underlined in the legislation history and amendment history.
If all the provisions of the law have been renumbered, a table of renumbered provisions gives details of previous and current numbering.
The endnotes also include a table of earlier republications.
Abbreviation key
A = Act NI = Notifiable instrument AF = Approved form o = order am = amended om = omitted/repealed amdt = amendment ord = ordinance AR = Assembly resolution orig = original ch = chapter par = paragraph/subparagraph CN = Commencement notice pres = present def = definition prev = previous DI = Disallowable instrument (prev...) = previously dict = dictionary pt = part disallowed = disallowed by the Legislative r = rule/subrule Assembly reloc = relocated div = division renum = renumbered exp = expires/expired R[X] = Republication No Gaz = gazette RI = reissue hdg = heading s = section/subsection IA = Interpretation Act 1967 sch = schedule ins = inserted/added sdiv = subdivision LA = Legislation Act 2001 SL = Subordinate law LR = legislation register sub = substituted LRA = Legislation (Republication) Act 1996 underlining = whole or part not commenced mod = modified/modification or to be expired
Legislation history
Leases (Commercial and Retail) Act 2001 A2001‑18
notified 19 April 2001 (Gaz 2001 No 16)
s 1, s 2 commenced 19 April 2001 (IA s 10B)
remainder commenced 1 July 2002 (s 2)as amended by
Statute Law Amendment Act 2002 A2002‑30 pt 3.40
notified LR 16 September 2002
s 1, s 2 taken to have commenced 19 May 1997 (LA s 75 (2))
amdts 3.567-3.569 taken to have commenced 1 July 2002 (s 2 (2))
pt 3.40 remainder commenced 17 September 2002 (s 2 (1))Justice and Community Safety Legislation Amendment Act 2003 A2003‑2 pt 11
notified LR 3 March 2003
s 1, s 2 commenced 3 March 2003 (LA s 75 (1))
pt 11 commenced 4 March 2003 (s 2 (1))Justice and Community Safety Legislation Amendment Act 2003 (No 2) A2003-47 pt 7
notified LR 31 October 2003
s 1, s 2 commenced 31 October 2003 (LA s 75 (1))
pt 7 commenced 1 November 2003 (s 2)Construction Occupations Legislation Amendment Act 2004
A2004-13 sch 2 pt 2.19
notified LR 26 March 2004
s 1, s 2 commenced 26 March 2004 (LA s 75 (1))sch 2 pt 2.19 commenced 1 September 2004 (s 2 and see Construction Occupations (Licensing) Act 2004 A2004-12, s 2 and CN2004-8)
Justice and Community Safety Legislation Amendment Act 2004 (No 2) A2004-32 pt 12
notified LR 29 June 2004
s 1, s 2 commenced 29 June 2004 (LA s 75 (1))
pt 12 commenced 30 June 2004 (s 2 (1))Court Procedures (Consequential Amendments) Act 2004 A2004-60 sch 1 pt 1.34
notified LR 2 September 2004
s 1, s 2 commenced 2 September 2004 (LA s 75 (1))sch 1 pt 1.34 commenced 10 January 2005 (s 2 and see Court Procedures Act 2004 A2004-59, s 2 and CN2004-29)
Statute Law Amendment Act 2005 A2005-20 sch 3 pt 3.33
notified LR 12 May 2005
s 1, s 2 taken to have commenced 8 March 2005 (LA s 75 (2))
sch 3 pt 3.33 commenced 2 June 2005 (s 2 (1))Justice and Community Safety Legislation Amendment Act 2006 A2006‑40 sch 2 pt 2.21
notified LR 28 September 2006
s 1, s 2 commenced 28 September 2006 (LA s 75 (1))
sch 2 pt 2.21 commenced 29 September 2006 (s 2 (1))Statute Law Amendment Act 2007 (No 2) A2007-16 sch 3 pt 3.21
notified LR 20 June 2007
s 1, s 2 taken to have commenced 12 April 2007 (LA s 75 (2))
sch 3 pt 3.21 commenced 11 July 2007 (s 2 (1))Planning and Development (Consequential Amendments) Act 2007 A2007-25 sch 1 pt 1.21
notified LR 13 September 2007
s 1, s 2 commenced 13 September 2007 (LA s 75 (1))sch 1 pt 1.21 commenced 31 March 2008 (s 2 and see Planning and Development Act 2007 A2007-24, s 2 and CN2008-1)
Justice and Community Safety Legislation Amendment Act 2008 A2008‑7 sch 1 pt 1.11
notified LR 16 April 2008
s 1, s 2 commenced 16 April 2008 (LA s 75 (1))
sch 1 pt 1.11 commenced 7 May 2008 (s 2)Statute Law Amendment Act 2009 (No 2) A2009-49 sch 3 pt 3.43
notified LR 26 November 2009
s 1, s 2 commenced 26 November 2009 (LA s 75 (1))
sch 3 pt 3.43 commenced 17 December 2009 (s 2)Fair Trading (Australian Consumer Law) Amendment Act 2010
A2010-54 sch 3 pt 3.14
notified LR 16 December 2010
s 1, s 2 commenced 16 December 2010 (LA s 75 (1))
sch 3 pt 3.14 commenced 1 January 2011 (s 2 (1))Unit Titles (Management) Act 2011 A2011-41 sch 5 pt 5.8
notified LR 3 November 2011
s 1, s 2 commenced 3 November 2011 (LA s 75 (1))
sch 5 pt 5.8 commenced 30 March 2012 (s 2 and CN2012-6)Statute Law Amendment Act 2015 A2015‑15 sch 3 pt 3.9
notified LR 27 May 2015
s 1, s 2 commenced 27 May 2015 (LA s 75 (1))sch 3 pt 3.9 commenced 10 June 2015 (s 2)
Planning and Development (University of Canberra and Other Leases) Legislation Amendment Act 2015 A2015‑19 pt 13
notified LR 11 June 2015
s 1, s 2 commenced 11 June 2015 (LA s 75 (1))pt 13 commenced 1 July 2015 (s 2 and CN2015-9)
Statute Law Amendment Act 2017 A2017-4 sch 3 pt 3.16
notified LR 23 February 2017
s 1, s 2 commenced 23 February 2017 (LA s 75 (1))
sch 3 pt 3.16 commenced 9 March 2017 (s 2)COVID-19 Emergency Response Act 2020 A2020-11 sch 1 pt 1.11
notified LR 7 April 2020
s 1, s 2 commenced 7 April 2020 (LA s 75 (1))
sch 1 pt 1.11 commenced 8 April 2020 (s 2 (1))COVID-19 Emergency Response Legislation Amendment Act 2020 A2020-14 sch 1 pt 1.18
notified LR 13 May 2020
s 1, s 2 taken to have commenced 30 March 2020 (LA s 75 (2))
sch 1 pt 1.18 commenced 14 May 2020 (s 2 (1))Planning (Consequential Amendments) Act 2023 A2023-36 sch 1 pt 1.42
notified LR 29 September 2023
s 1, s 2 commenced 29 September 2023 (LA s 75 (1))sch 1 pt 1.42 commenced 27 November 2023 (s 2 (1) and see Planning Act 2023 A2023-18, s 2 (2) and CN2023-10)
Education and Care Services National Law (ACT) Amendment Act 2024 A2024-33 sch 1 pt 1.6
notified LR 10 July 2024
s 1, s 2 commenced 10 July 2024 (LA s 75 (1))
sch 1 pt 1.6 commenced 11 July 2024 (s 2 (1))Amendment history
Commencement
s 2om LA s 89 (4)
What leases does this Act apply to?
s 12am A2015‑19 s 72, s 73; pars renum R20 LA; A2023-36 amdt 1.236; A2024‑33 amdt 1.11, amdt 1.12
Disputes
s 17table renum R5 LA
Recovery of GST
s 21am A2015‑15 amdt 3.42
Lease costs
s 23am A2009‑49 amdt 3.101
Notice of acceptance of lease offer
s 24am A2017‑4 amdt 3.90
Provision of copy of lease to tenant
s 25am A2002‑30 amdt 3.555; A2009‑49 amdt 3.102
Copy of proposed lease to be provided
s 28am A2002‑30 amdt 3.555
Disclosure statements
s 30am A2002‑30 amdt 3.555
Form of disclosure statements
s 31sub A2002‑30 amdt 3.556
Notice of material changes
s 34am A2017‑4 amdt 3.90
Rent setting or review if lease method void
s 49am A2002‑30 amdt 3.557
Market rent—rent reviews, options and renewals
s 52am A2002‑30 amdt 3.558, amdt 3.559
Appointment of new valuer if conflict of interest disclosed
s 57am A2002‑30 amdt 3.559
Outgoings—reports
s 66am A2011‑41 amdt 5.26; A2015‑15 amdt 3.43, amdt 3.44; A2017‑4 amdts 3.73-3.75
Adjustment of contributions to outgoings
s 67am A2002‑30 amdt 3.560
Employment restriction
s 73am A2015‑15 amdt 3.45; A2017‑4 amdts 3.76-3.80
Demolition
s 78am A2017‑4 amdt 3.81, amdt 3.82
Alterations and refurbishments to or affecting premises
s 79am A2017‑4 amdt 3.90
Compensation to reflect any concessions
s 82am A2017‑4 amdt 3.83, amdt 3.84
Notice of lessor’s intentions regarding repair
s 88am A2002‑30 amdt 3.561
Termination by tenant because of damage
s 90am A2017‑4 amdt 3.90
Provision of disclosure statement by tenant
s 93am A2017‑4 amdt 3.90
Lessor may require relevant information and documents
s 96am A2015‑15 amdt 3.46
Mortgagees and head lessors
s 97am A2017‑4 amdt 3.90
Lessor’s consent or refusal
s 99am A2017‑4 amdt 3.85
Refusal to consent to assignment or sublease
s 100am A2010‑54 amdt 3.37
Minimum 5 year lease
s 104am A2017‑4 amdt 3.90
Lessor’s intentions about renewal
s 107am A2017‑4 amdt 3.90
Implementation of preferential right
s 109am A2017‑4 amdt 3.90
Notice of absence of right of preference
s 110am A2007‑16 amdt 3.74; A2017‑4 amdt 3.90
Tenant’s right to terminate extended lease
s 116am A2002‑30 amdt 3.562, amdt 3.563
Failure to notify material change in disclosure statement
s 118am A2017‑4 amdt 3.90
Procedure for termination of lease by lessor etc
s 122am A2002‑30 amdt 3.563
Confirmation of contested termination
s 123am A2008‑7 amdt 1.59
Confirmation of uncontested termination
s 124am A2002‑30 amdt 3.564
Content of termination orders
s 125am A2002‑30 amdt 3.565
Provision and use of turnover figures
s 129am A2015‑15 amdt 3.47, amdt 3.48; A2017‑4 amdts 3.86‑3.88
Relocation clauses
s 136am A2017‑4 amdt 3.89
Jurisdiction
s 144sub A2003‑2 s 57
am A2003‑47 s 27; A2004‑60 amdt 1.164, amdt 1.165
Applications that may be made
s 145sub A2003‑2 s 57
am A2004‑60 amdt 1.166
Procedures
s 151am A2004‑60 amdt 1.167, amdt 1.168
(2), (4), (5) exp 1 July 2006 (s 151 (5))
ss renum R11 LA
Appeals to Supreme Court
s 155sub A2006‑40 amdt 2.118
Order by Supreme Court on appeal
s 156am A2004‑60 amdt 1.169
om A2006‑40 amdt 2.118
Approved forms
s 157Ains A2002‑30 amdt 3.566; A2015‑15 amdt 3.49
Regulation-making power
s 158am A2004‑60 amdt 1.170
Transitional
pt 16 hdgexp 30 June 2006 (s 171)
Transitional
div 16.1 hdgom R1 LA (see also A2002‑30 amdt 3.567)
Definitions for pt 16
s 159 hdgsub A2002‑30 amdt 3.568
s 159exp 30 June 2006 (s 171)
Pre-existing referrals
s 160exp 30 June 2006 (s 171)
Provisions required to be included—application to pre-existing leases
s 161exp 30 June 2006 (s 171)
Lessor’s intentions about renewal
s 162exp 30 June 2006 (s 171)
Preference to existing tenants
s 163exp 30 June 2006 (s 171)
Provisions taken to be included—application to pre-existing leases
s 164exp 30 June 2006 (s 171)
Application of Act to disputes under code
s 165exp 30 June 2006 (s 171)
Approved handbook and pre-existing leases
s 166exp 30 June 2006 (s 171)
Tribunal decisions
s 167exp 30 June 2006 (s 171)
Application of Act to leases code applied to
s 168exp 30 June 2006 (s 171)
Saving of certain court orders for relief
s 168Ains A2003‑2 s 58
exp 30 June 2006 (s 171)
Transitional regulations
s 169exp 30 June 2004 (s 171 (2))
Modification of pt 16’s operation
s 170exp 30 June 2004 (s 171 (2))
Expiry of pt 16
s 171 hdgam R1 LA (see also sub A2002‑30 amdt 3.569)
s 171am R1 LA (see also sub A2002‑30 amdt 3.569)
sub A2004‑32 s 88
(2) exp 30 June 2004 (s 171 (2))
exp 30 June 2006 (s 171)
Consequential repeals and amendments
div 16.2 hdgexp 1 July 2002 (s 176)
Repeal
s 172exp 1 July 2002 (s 176)
Amendment of Land Titles Act
s 173exp 1 July 2002 (s 176)
Amendment of Magistrates Court Act
s 174exp 1 July 2002 (s 176)
Amendment of Magistrates Court (Civil Jurisdiction)Act
s 175exp 1 July 2002 (s 176)
Expiry of div 16.2
s 176exp 1 July 2002 (s 176)
COVID-19 emergency response
pt 17 hdgins A2020‑11 amdt 1.46
exp 29 December 2022 (s 177 (6))
Declaration—COVID-19 emergency response
s 177ins A2020‑11 amdt 1.46
am A2020‑14 amdts 1.93-1.95
exp 29 December 2022 (s 177 (6))
Expiry—pt 17
s 178ins A2020‑11 amdt 1.46
om A2020‑14 amdt 1.96
Dictionary
dictam A2002‑30 amdt 3.570; A2007‑25 amdt 1.94; A2015‑15 amdt 3.50, amdt 3.51
def certificate of occupancy sub A2004‑13 amdt 2.78
def certified exclusionary clause om A2015‑15 amdt 3.52
def commercial premises am A2015‑15 amdt 3.53
def continuous occupation lease ins A2005‑20 amdt 3.186
defdispute sub A2008‑7 amdt 1.60
def enter into om A2005‑20 amdt 3.187
def entered into ins A2005‑20 amdt 3.187
def excluded area am A2015‑15 amdt 3.54
defGST om R8 LA
def lease am A2015‑15 amdt 3.55
def Magistrates Court om A2015‑15 amdt 3.56
defparty ins A2008‑7 amdt 1.61
def renewal am A2015‑15 amdt 3.57
def retail premises ins A2005‑20 amdt 3.188
def taxable supply om A2015‑15 amdt 3.58
defterritory lease om A2007‑25 amdt 1.95
Earlier republications
Some earlier republications were not numbered. The number in column 1 refers to the publication order.
Since 12 September 2001 every authorised republication has been published in electronic pdf format on the ACT legislation register. A selection of authorised republications have also been published in printed format. These republications are marked with an asterisk (*) in column 1. Electronic and printed versions of an authorised republication are identical.
Republication No and date Effective Last amendment made by Republication for R1
1 July 20021 July 2002–
16 Sept 2002not amended new Act and commenced expiry R1 (RI)
19 Sept 20021 July 2002–
16 Sept 2002A2002‑30 reissue for retrospective amendments by A2002‑30 R2
19 Sept 200217 Sept 2002–
3 Mar 2003A2002‑30 amendments by A2002‑30 R3
4 Mar 20034 Mar 2003–
31 Oct 2003A2003‑2 amendments by A2003‑2 R4*
1 Nov 20031 Nov 2003–
29 June 2004A2003‑47 amendments by A2003‑47 R5
30 June 200430 June 2004–
30 June 2004A2004‑32 amendments by A2004‑32 R6
1 July 20041 July 2004–
31 Aug 2004A2004‑32 commenced expiry R7
1 Sept 20041 Sept 2004–
9 Jan 2005A2004‑32 amendments by A2004‑13 R8*
10 Jan 200510 Jan 2005–
1 June 2005A2004‑60 amendments by A2004‑60 R9
2 June 20052 June 2005–
30 June 2006A2005‑20 amendments by A2005‑20 R10
1 July 20061 July 2006–
1 July 2006A2005‑20 commenced expiry R11
2 July 20062 July 2006–
28 Sept 2006A2005‑20 commenced expiry R12
29 Sept 200629 Sept 2006–
10 July 2007A2006‑40 amendments by A2006‑40 R13
11 July 200711 July 2007–
30 Mar 2008A2007‑16 amendments by A2007‑16 R14
31 Mar 200831 Mar 2008–
6 May 2008A2007‑25 amendments by A2007‑25 R15
7 May 20087 May 2008–
16 Dec 2009A2008‑7 amendments by A2008‑7 R16*
17 Dec 200917 Dec 2009–
31 Dec 2010A2009‑49 amendments by A2009‑49 R17
1 Jan 20111 Jan 2011–
29 Mar 2012A2010‑54 amendments by A2010‑54 R18
30 Mar 201230 Mar 2012–
9 June 2015A2011‑41 amendments by A2011‑41 R19
10 June 201510 June 2015–
30 June 2015A2015-15 amendments by A2015-15 R20
1 July 20151 July 2015–
8 Mar 2017A2015-19 amendments by A2015-19 R21
9 Mar 20179 Mar 2017–
7 Apr 2020A2017‑4 amendments by A2017‑4 R22
8 Apr 20208 Apr 2020–
13 May 2020A2020-11 amendments by A2020-11 R23
14 May 202014 May 2020–
29 Dec 2022A2020‑14 amendments by A2020‑14 R24
30 Dec 202230 Dec 2022–
26 Nov 2023A2020‑14 expiry of provisions (pt 17) R25
27 Nov 202327 Nov 2023–
10 July 2024A2023‑36 amendments by A2023‑36
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