Commercial Tenancy (Retail Shops) Agreements Act 1985
The Act aims to assist prospective and existing lessees and lessors in the leasing of retail premises.
The focus of the Commercial Tenancy (Retail Shops) Agreement Act 1985 (the Act) is on retail business, however leases for non-retail use such as businesses in shopping centres and other specified businesses are also covered by the Act.
The information on this website is not a comprehensive statement of the laws or a substitute for expert opinion. It is vital however, that all parties to the leasing of relevant commercial premises such as tenants, property owners and commercial property managers are informed about these laws.
Commercial Tenancy (Retail Shops) Agreements Amendment Bill 2009
Review
The Commercial Tenancy (Retail Shops) Agreements Act 1985 (the Act) was reviewed in 2003 to identify deficiencies in the legislation and improve commercial tenancy rights of small business.
A review report was issued containing 61 recommendations aimed at increasing information disclosure and transparency and facilitating fair dealings between landlords and tenants.
Since the time of the review:
- several recommendations, particularly those relating to unconscionability, have already been incorporated into the Act, and
- other recommendations are no longer relevant, given changes that have occurred in the industry and in the law.
Amendments
A Commercial Tenancy (Retail Shops) Amendment Bill 2009 (the Bill) is being developed to implement most of the outstanding review recommendations.
The proposed reforms will assist in redressing the information imbalance that can occur between landlords and tenants and ensure the Act provides a more efficient and transparent framework for all parties to pursue their commercial interests. The amendments will also bring Western Australia into line with retail tenancy legislation in other States and Territories where appropriate.
In particular, the proposed amendments will incorporate new provisions into the Act which will:
- allow tenants to make more informed leasing decisions by requiring landlords to include additional information in the disclosure statements provided to tenants (recommendations 41 and 42);
- enhance security of tenure by protecting the rights of tenants with respect to options to renew (recommendations 60 and 61) and shopping centre redevelopments/relocations (recommendations 52 to 54);
- improve the negotiating power of tenants by prohibiting landlords from passing on some of their legal fees to tenants (recommendation 56); and
- assist in the preparation of more consistent and equitable rent reviews by requiring landlords and tenants to supply valuers with relevant leasing information (recommendation 30).
Timeframe
The Minister for Commerce has indicated that he intends to introduce the Bill into Parliament in the 2009 Spring session.
For more information
The Department of Commerce can be contacted to provide advice on the policy, content and review aspects of the Act (telephone: 1300 30 40 54).
The Small Business Development Corporation (SBDC) provides a commercial tenancy service to assist landlords and tenants with retail lease probelms and inquiries. The SBDC can be contacted by visiting their website or calling 131 BIZ (131 249) or 1800 199 125 (regional Western Australian callers).