The Retail Leases Amendment (Review) Bill 2016, has been
recently introduced into the Legislative Assembly by The Hon John
Barilaro, NSW Deputy Premier and Minister for Small Business.
Although not in place yet, these changes will have far-reaching
consequences and changes. These changes will include, but are not
Greater protection for the Tenant
A Tenant will be able to seek compensation if they terminate
their lease within six months, pursuant to their rights to
terminate in certain circumstance.
Landlords will have to provide full disclosure in their
disclosure statement as to any obligations the Tenant has to
contribute to outgoings.
Landlords will have to bear their own costs involved in
obtaining mortgagee consent.
Bank guarantees must be returned to Tenants within two months
of them fulfilling obligations.
More guidance will be provided on how to gain Landlord approval
of an assignment to lease.
Greater protection for the Landlord
The definition of 'outgoings' will now include fees of
the Landlord for any additional services they may have
With approval from the Registrar of Retail Tenancy Disputes
(the Registrar), police and security checks can be taken out
against a Tenant's employees.
When a Tenant wishes to terminate on the grounds of proposed
demolition, this will only be permissible when the demolition
requires vacant possession of the shop.
Retail leases with a term of more than three years will have to
be registered and lodgement must happen three months after
Premises used completely for non-retail purposes won't come
under the Act anymore (this will include ATMs, vending machines,
public telephones, children's rides, internet booths, private
post boxes and certain storage uses).
There will no longer be a five-year minimum term for retail
A disputed security bond now will not be released until after
the period for appeal of a judgement has ended.
The Civil and Administrative Tribunal will now be able to hear
claims under the Act of up to $750,000.
The Tribunal can now fix mistakes in leases to reflect the
The Registrar will be able to appoint specialist retail
valuers, so people do not need to go to the Tribunal.
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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A lessee will need to demonstrate that the genuine interests of the lessor will be protected if relief is granted.
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