The Retail Leases Act provides that a clause in a lease to which the Act applies is void to the extent that the provision is inconsistent with a provision of the Act. It is most important when parties enter into a retail lease that the terms of the lease comply with the requirements of the Act.

The Act applies to those premises which are wholly or predominately used for the carrying on of the businesses specified in the Act or are used for the carrying on any business in a retail shopping centre. Shops that have an area of 1000 square metres or more are not affected by the Act.

The minimum lease term for a lease governed by the Act is 5 years including options, unless the tenant’s lawyer provides a certificate in the form prescribed by the Act.

The Act also contains provisions about changes to base rents and the calculation of current market rent. It is prohibited to review rent according to whichever of 2 or more methods will achieve a higher result.

The legislation also prescribes an entitlement of the tenant to compensation in a variety of situations.

For more information about retail leases, please contact Rebecca Flynn at

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