Commercial Tenancy (Retail Shops) Agreements Act 1985
Commercial Tenancy (Retail Shops) Agreements Amendment Act 2011
Review
Amendments
Timeframe
For more information
Review
The Commercial Tenancy (Retail Shops) Agreements Act 1985 (the Act) was reviewed in 2002/3 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.
Amendments
The Commercial Tenancy (Retail Shops) Agreements Amendment Act 2011 (the Amendment Act) will 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;
- enhance security of tenure by protecting the rights of tenants with respect to options to renew and shopping centre redevelopments/relocations;
- improve the negotiating power of tenants by prohibiting landlords from passing on some of their legal fees to tenants; and
- assist in the preparation of more consistent and equitable rent reviews by requiring landlords and tenants to supply valuers with relevant leasing information.
A copy of the Amendment Act is available from the State Law Publisher’s website.
Timeframe
The Amendment Act was passed by the Parliament on 29 November 2011 and it is anticipated that the amendments will come into effect in mid- 2012.
The Department is currently in the process of developing the regulations necessary to support the changes made by the Amendment Act.
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 problems and enquiries. The SBDC can be contacted by visiting their website or calling 131 BIZ (131 249) or 1800 199 125 (regional Western Australian callers).