The Building Energy Efficiency Disclosure("the
Act") and accompanying Regulations commenced on 1 July
The Act prescribes new disclosure requirements which commenced 1
November 2010. The Act also established the Building Energy
Efficiency Scheme "Scheme") which provides that:
Corporations must not offer to sell, lease or sublease
disclosure-affected premises without a Building Energy Efficiency
Certificate ( "BEEC");
Corporate owners, lessees and sublessees must provide
prospective purchasers, lessees and sublessees with a BEEC upon
Corporations must not advertise disclosure-affected premises
for sale or sublease without including a valid and current Energy
Efficiency Rating in the advertisement.
Disclosure-affected buildings are commercial office buildings
a. comprise at least 2,000 square metres of space used for the
types of activities that would usually take place in a commercial
b. are not strata titled; and
c. have been certified for occupation more than 2 years ago (in
the case of a new building).
During the first 12 months of the Scheme, a building owner or
landlord can register with the Department of Environment Climate
Change & Water, and instead of disclosing a BEEC may disclose a
National Australian Buit Environment Rating System
("NABERS") base building rating when
selling, leasing or subleasing.
However, from 1 November 2011 a full registered BEEC will be
On 29 November 2010 additional changes came into effect with the
commencement of the Building Efficiencywhich further
Disclosure (Disclosure Affected Building) Determination 2010
(No.2) specified the types of buildings that will require a
Some of the changes include the following:
1. Mixed use buildings
Mixed use buildings which combine office space with other
functions such as warehouses, vehicle centres, hotels or retail
outlets are now disclosure affected if the office component of the
buildings is 75% or more of the net lettable area of the
A building which is 2,000 square metres or more, with less than
75% office space is an exception to the Act and therefore those
buildings are not disclosure affected and no action is
Owners of buildings that are below the 75% threshold may of
course, wish to voluntarily comply with the legislation.
Owners of buildings which have had major refurbishments that
will have a substantial effect on the energy performance of the
base building will not be required to disclose an Energy Efficiency
Rating for 2 years from the date when the certificate of occupancy
Major refurbishments are those that involve substantial changes
being made to the fabric, plant or equipment in the building and
require a certificate of occupancy being issued under a law of a
State or Territory prior to the building being occupied or
If a building has undergone major refurbishment it is classed as
an exception to the Act for two years after the issue of the
occupation certificate and no action is required during that time.
However, after two years of occupancy, building owners will need to
comply with the Act and disclose an Energy Efficiency Rating.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Many retail leases include a covenant to trade, requiring the tenant to open the premises for trade during certain hours.
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