A review into the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) is underway
By Nasiya Goldberg, Senior Associate
The Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) (the CT Act) is currently subject to review in accordance with section 31, which requires a review of the operation and effectiveness of the legislation to be carried out every five years.
The key issues considered in the current review include the following:
- Leases covered by the Act: whether the CT Act still applies to those leases and small businesses to which it was intended to apply.
- Minimum five year lease: whether policy settings underpinning the minimum five year term are appropriate for current and future retail shop marketplaces.
- Disclosure requirements: whether current disclosure requirements are sufficient.
- Lease costs: whether the various costs incurred by tenants as part of their lease agreement are fair and reasonable and have costs been adequately disclosed to the tenant.
- First right of refusal: whether the current policy settings in relation to lease renewal or extension are appropriate and provide a balance between the expectations of retail shop tenants and landlords.
- Early termination due to severe financial hardship: whether the CT Act provides adequate protections for commercial tenants facing severe financial hardship.
- Trading hours: whether the CT Act’s current settings in relation to trading hours remain appropriate for the current and future retail shops marketplace.
- Unconscionable conduct: whether the unconscionable conduct provisions within the CT Act are operating as intended to protect parties from behaviour that is unconscionable.
- Dispute resolution: whether the dispute resolution mechanisms within the CT Act are efficient, effective and user friendly.
- COVID-19 and other issues: whether there are any issues resulting from the COVID-19 pandemic or any other issues not identified in the consultation paper that should be considered as part of the review.
Readers who are interested in making a submission to the review should note the below links to the review’s consultation paper and consultation workbook:
Commercial tenancy law review consultation paper
Submissions can be made:
By mail: Commercial Tenancy Review
- Department of Mines, Industry Regulation and Safety
(Consumer Protection Division)
Locked Bag 100 East Perth WA 6892 - By email
- Or complete the online survey
Please note that submissions close on 8 August 2022.
The MST Property and Leasing team remain available to assist you with your property and leasing queries. Please contact Nasiya Goldberg, Senior Associate on (03) 8540 0727 or Evelyn Marcou, Principal on (03) 8540 0243.
