Western Australia: Commercial Tenancy Retail Shops Amendments to Commence

The provisions of the Commercial Tenancy (Retail Shops) Agreements Amendment Act 2011 (No. 59 of 2011) WA (other than ss 1 and 2) are to commence on 1 January 2013. The purpose of the amendments is said by the government to be to amend the Commercial Tenancy (Retail Shops) Agreements Act 1985 in order to improve the tenancy rights of small business and to enhance the clarity and effectiveness of the legislation.

The amendments when introduced were said by the government incorporate new provisions into the Act to:

• 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 or relocations;

• improve the negotiating power of tenants by prohibiting landlords from passing on certain legal fees to tenants;

• assist in the preparation of more consistent and equitable rent reviews by requiring landlords and tenants to supply valuers with relevant leasing information; and

• prohibit misleading and deceptive conduct and give the State Administrative Tribunal the jurisdiction to hear claims in relation to misleading and deceptive conduct.

In its explanatory memorandum the government claimed:

 “the reforms will assist in redressing the information imbalance that can occur between landlords and tenants and ensure the Act provides a more transparent framework in which the parties can pursue their commercial interests.

The amendments will provide improved protections for tenants balanced with the need to provide a regulatory environment that is fair to landlords. This will be achieved by reducing disputes between landlords and tenants; reducing the disparity in bargaining power that can exist between parties; and improving the clarity and effectiveness of the legislation.”

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