The highly-anticipated changes to the Retail Shop Leases Act have recently been passed by Parliament, with the changes expected to become effective in November this year. You can read more about the benefits of the changes to both landlords and tenants in our previous email alert.
The most important thing for both landlords and tenants to keep in mind is that the amendments to the Act may mean that you no longer have to comply with the Act, or some parts of it, even if you are currently required to do so.
Leases which the Act applies to
New leases for premises with a floor area of more than 1000m2 will no longer need to comply with the Act, nor will leases for non-retail premises in shopping centres where only 25% or less of the total lettable area of the centre is used for retail purposes.
However, the Act will still continue to apply to these leases (or an assignment or renewal under them) if they are already on foot.
Waiver of Disclosure Provisions
Similarly, some of the disclosure requirements and associated timeframes provided for under the Act may now be waived. There are different provisions for whether specific amendments to the Act will apply to a lease which is already on foot, so we recommend that you contact us when considering whether the changes apply to your lease.
If you require further advice about how the changes will impact your lease, please contact our Commercial + Property team.