News

14 September 2016

Amendments to Retail Shop Leases Act

The Retail Shop Amendment Act 2016 received royal assent in May 2016.  The Queensland Government has now announced that the amendments will come into effect on 25 November 2016.  There are a whole suite of changes to the Retail Shop Leases Act that will affect all Retail Shop leases.

Some of the more notable changes:

  • any retail tenancy over 1,000m² will no longer be considered to be a retail shop and will no longer be covered by the Act;
  • disclosure periods (for example the seven day lessor disclosure notice period) can now be waived;
  • current lessor disclosure statements will need to be provided on the exercise of options;
  • major lessees can now waive the protections regarding rent review provisions (eg. multiple mechanisms for review and ratchet rent provisions);
  • the relocation provisions will now apply to all relocations (not just those where vacant possession is required to facilitate refurbishment, extension or redevelopment of the centre);
  • on assignment, both assignee and guarantors will be released from their obligations if the disclosure requirements are complied with; and
  • refurbishment clauses will be void if they do not detail when and what refurbishment needs to occur.

Keep an eye out for our upcoming business seminar on the amendments and what you need to know, as the changes are sure to affect all landlords and tenants of retail shops in one way or another. For more information about the changes and how they affect you contact our property law department.

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