This article is from the Australian Property Journal archive
TASMANIA’S first update to retail leasing legislation since 1998 has passed the state’s lower house of parliament.
The Retail Leases Bill 2022 (Tas) seeks to “facilitate the certainty and fairness of retail premises leasing arrangements between landlords and tenants”, according to the Tasmania government, and contains provisions that seek to repeal and replace the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 (Tas).
As per the existing code, the Bill will apply to retail premises of up to 1,000 sqm, while in circumstances where the lease is less than six months, the Bill will also apply if the tenant has been in possession for six months because the retail lease was renewed or continued one or more times.
Elise Archer, Minister for Workplace Safety and Consumer Affairs, said the legislation is the result of a comprehensive review, including a discussion paper and two separate rounds of public consultation.
It includes requirements for detailed disclosure documents to be exchanged between the parties prior to entering into a retail lease, provisions to determine the way rent is to be adjusted or calculated, specific provisions for retail premises within shopping centres, including a prohibition of termination of lease due to insufficient sales, and low-cost and accessible dispute resolution via mediation.
The Bill also sets out a mediation-based dispute resolution process if direct negotiation between parties fails. A party to the lease can make an application to the director of consumer affairs and fair trading for the mediation of a retail tenancy dispute. The director may then appoint a qualified mediator to hear the dispute, where the costs of mediation are to be met by both parties.
If parties to the dispute fail to resolve the matters between themselves, either party may refer the dispute to a prescribed body.
