Retail Shop Leases Act 1994 Retail Shop Leases Regulation 2006 Part 1 Preliminary 1 Short title This regulation may be cited as the Retail Shop Leases Regulation 2006 . 2 Commencement This regulation commences on 3 April 2006. Part 2 Disclosure statements 3 Prescribed particulars for lessor’s disclosure statement The prescribed particulars for a disclosure statement given by a lessor of a retail shop under section 22 or 22C (1) of the Act are the following—

(a) the names of the lessor and lessee;

(b) the address of the leased shop;

(d) the date or estimated date the lease starts;

(e) the date the lessee is entitled to occupy the leased shop, if different to the date or estimated date the lease starts;

(f) details of any option to renew the lease, including—

(i) the date by which the lessee must exercise the option; and

(ii) the option period;

(g) the following details about the rent—

(i) the starting annual base rent;

(ii) the method of payment;

(iii) any rent free period;

(iv) for any rent adjustment, the method for calculation and when it is calculated;

(h) if turnover rent is payable, the method for calculating the turnover rent;

(i) if turnover rent is not payable, whether or not the lessee is required to give information to the lessor about turnover of the lessee’s business;

(j) details of any payments to be made by the lessee under the lease for the lessor’s outgoings, including the date the payments commence;

(k) details of the lessee’s liability to pay costs arising under the lease, including—

(i) promotion amounts; and

(ii) amounts under section 48 (2) of the Act;

(l) the core trading hours for the leased shop;

(m) identification of any provision in the lease about—

(i) demolishing the leased shop, leased building or the retail shopping centre in which the leased shop is or is to be situated; or

(ii) relocating the lessee’s business to different premises;

(n) the lessee’s permitted use of the leased shop and whether or not the use is exclusive to the lessee;

(o) if the leased shop is, or is to be, situated in a retail shopping centre, each of the following details—

(i) the name and address of the centre;

(ii) the number of retail shops in the centre when the disclosure statement is given;

(iii) the centre’s lettable area or estimated lettable area;

(iv) whether or not the lessor gives any assurance to the lessee about the nature of other businesses operating in the retail shopping centre;

(p) the leased shop’s area or estimated area;

(q) whether or not a survey of the leased shop’s area will be undertaken;

(r) details of any available parking bays, including the number of bays reserved for the lessee’s use;

(s) details of any services or facilities to be provided by the lessor for the benefit of the leased shop;

(t) details of any structures, fixtures, plant or equipment to be provided by the lessor;

(u) details of any works to be carried out by the lessor before the lease starts;

(v) an estimate of any contribution to be made by the lessee to the cost of the lessor’s works;

(w) details of any fit out works to be carried out by the lessee;

(x) any contribution to be made by the lessor to the cost of the lessee’s fit out;

(y) any requirements the lessee must comply with relating to the quality or standard of the shopfront or fit out;

(z) any alteration works the lessor knows are to be carried out by or for the lessor to any of the following—

(i) the leased shop;

(ii) the leased building;

(iii) the retail shopping centre in which the leased shop is or is to be situated;

(iv) the roads surrounding the leased shop, leased building or the retail shopping centre;

(za) the lessee’s entitlement, if any, to access the leased shop outside core trading hours, including any cost payable by the lessee;

(zb) details of any current legal proceeding in relation to the lawful use of the leased shop, leased building or the retail shopping centre in which the leased shop is or is to be situated.

s 3 sub 2010 SL No. 230 s 4 4 Prescribed particulars for prospective lessee’s disclosure statement The prescribed particulars for a disclosure statement given by a prospective lessee of a retail shop under section 22A of the Act are the following—

(a) the names of the lessor and prospective lessee;

(b) the prospective lessee’s address;

(d) the number of retail business premises leased by the prospective lessee when the disclosure statement is given;

(e) sufficient details of the prospective lessee’s experience in retail business to demonstrate the lessee’s ability to meet the financial and other obligations of the lease;

(f) details of anything known to the prospective lessee that may affect the prospective lessee’s ability to meet the financial and other obligations of the lease;

(g) details of statements or representations made by or for the lessor during the lease negotiations and being relied on by the prospective lessee;

(h) a declaration that no other promises, representations, warranties or undertakings have been made by or for the lessor to the prospective lessee about the premises or the business to be carried on in the premises;

(i) confirmation that, under section 22 of the Act, the lessor has given the prospective lessee a draft of the lease and a disclosure statement.

5 Prescribed particulars for assignor’s disclosure statement The prescribed particulars for a disclosure statement given by an assignor of a retail shop lease under section 22B (1) of the Act are the following—

(a) the names of the assignor and prospective assignee;

(b) the address and description of the leased shop;

(d) the date the lease ends;

(e) details of any options to renew the lease and the next date for exercising an option;

(f) details of rent, outgoings, promotion amounts and other charges payable to the lessor under the lease;

(g) the basis for a rent review under the lease and the date for the next review;

(h) if the assignment involves the prospective assignee continuing the business carried on by the assignor—details of the sales figures and trading performance of the business for—

(i) the last 5 years; or

(ii) if the assignor has carried on the business for a period of less than 5 years—the period;

(i) details of any outstanding notices from—

(i) the lessor under the lease; or

(ii) any government entity in relation to the retail shop;

(j) details of any encumbrance on—

(i) the lease; or

(ii) any of the shop’s fixtures or fittings;

(k) details of the ownership of any of the shop’s fixtures or fittings not owned by the assignor;

(l) details of any rent concessions or other benefits applicable to the balance of the term of the lease;

(m) whether the lease contains a provision releasing the assignor from liability under the lease on its assignment;

(n) a declaration that the assignor has given the assignee—

(i) a copy of the disclosure statement given by the lessor to the assignor before the assignor entered into the lease; and

(ii) details of any changes in the information contained in the statement that have happened since the statement was given.

6 Prescribed particulars for prospective assignee’s disclosure statement The prescribed particulars for a disclosure statement given by a prospective assignee under section 22B (2) or 22C (3) of the Act are the following—

(a) the names of the assignor and prospective assignee;

(b) the prospective assignee’s address;

(d) the number of retail business premises leased by the prospective assignee when the disclosure statement is given;

(e) sufficient details of the prospective assignee’s experience in retail business to demonstrate the assignee’s ability to meet the financial and other obligations of the lease;

(f) details of anything known to the prospective assignee that may affect the prospective assignee’s ability to meet the financial and other obligations of the lease;

(g) details of statements or representations made by the assignor during lease negotiations and being relied on by the prospective assignee;

(h) a declaration that no other promises, representations, warranties or undertakings have been made by the assignor to the prospective assignee about the premises or the business to be carried on in the premises;

(i) confirmation that, under section 22B (1) of the Act, the assignor has given the prospective assignee a disclosure statement;

(j) if, under section 22C (3) of the Act, the prospective assignee is giving the statement to the lessor—

(i) the name of the lessor; and

(ii) details of statements or representations made by or for the lessor during lease negotiations and being relied on by the prospective assignee; and

(iii) a declaration that no other promises, representations, warranties or undertakings have been made by or for the lessor to the prospective assignee about the premises or the business to be carried on in the premises; and

(iv) confirmation that, under section 22C (1) of the Act, the lessor has given the prospective assignee a disclosure statement and a copy of the lease.

Part 3 Financial and legal advice reports 7 Prescribed particulars for financial advice report The prescribed particulars for a financial advice report given by a prospective lessee or prospective assignee under section 22D of the Act are the following—

(a) the name of the qualified accountant signing the report;

(b) the name of the prospective lessee or prospective assignee;

(d) the address of the retail shop;

(e) a statement that the accountant has given advice about the prospective lessee or prospective assignee’s financial rights and obligations under the lease including—

(i) the rent, outgoings and other payments; and

(ii) the potential financial impact of the rent review; and

(iii) the fact that the operation of the business is restricted by the term of the lease;

(f) a statement that the accountant has advised the prospective lessee or prospective assignee to obtain further professional advice including advice about the following—

(i) the volume of sales required to meet all costs of carrying on the business including capital costs, loan repayments and salary for the business operator;

(ii) appropriate accounting and financial reporting systems;

(iii) cash flow forecasting;

(iv) sales budget forecasting;

(v) taxation requirements;

(g) a declaration by the accountant about any relationship, whether professional or personal, that the accountant has with the lessor;

(h) a statement by the prospective lessee or prospective assignee about receiving and understanding the advice mentioned in the report.

8 Prescribed particulars for legal advice report The prescribed particulars for a legal advice report given by a prospective lessee or prospective assignee under section 22D of the Act are the following—

(a) the name of the lawyer signing the report;

(b) the name of the prospective lessee or prospective assignee;

(d) the address of the retail shop;

(e) a statement that the lawyer has given advice about the following matters in relation to the lease—

(i) the rent, outgoings and other payments and how they are calculated;

(ii) the rent review;

(iii) the liability to contribute to outgoings;

(iv) the term of the lease;

(v) any special or unusual terms or conditions of the lease;

(vi) whether a repayable bond or guarantee is required under the lease;

(vii) whether the lease contains an option to renew;

(viii) if the lease does not contain an option to renew—any rights the lessee or assignee may have to extend the lease;

(ix) the obligations on all parties at the end of the lease;

(x) any terms or conditions of the lease that allow the proposed lessee or proposed assignee’s business to be relocated to other premises;

(xi) the uses permitted for the retail shop premises under the lease;

(xii) the lessee’s right, under section 45 of the Act or the lease, to deal with the lease and assets of the business intended to be carried on in the retail shop;

(xiii) the consequences of a breach of a term or condition of the lease;

(f) a statement that the lawyer has advised the prospective lessee or prospective assignee to obtain further professional advice including advice about the following—

(i) town planning matters, including the licences or permits required to carry on the business intended in the retail shop;

(ii) building laws, including the appropriate classification under the Building Act 1975 to carry on the business intended in the retail shop;

(iii) the statutory approvals required to carry on a retail business of the type intended;

(iv) financial advice about the operation of the retail business intended to be carried on;

(g) a statement that the lawyer is not providing advice about, or making comment on, the following—

(i) the financial viability of the business intended to be carried on;

(ii) the ability of the prospective lessee or prospective assignee to meet the financial commitments under the lease;

(iii) accounting requirements or taxation implications of entering into the lease;

(h) a declaration by the lawyer about any relationship, whether professional or personal, that the lawyer has with the lessor;

(i) a statement by the prospective lessee or prospective assignee about receiving and understanding the advice mentioned in the report.

Part 4 Miscellaneous 9 Retail business (1) A business is a retail business if—

(a) it is a business mentioned in the schedule; or

(b) its whole or predominant activity is, or is a combination of, the sale, hire or supply of goods or services mentioned in the schedule.

(2) The wholesale sale of goods is not a retail business. 10 Prescribed types of premises For the Act, definition retail shop lease, paragraph (g), premises with a floor area of more than 10,000m² are prescribed. 11 Fee for lodging dispute notice—Act, s 55(2) The fee for lodging a dispute notice is $305. s 11 amd 2008 SL No. 266 s 3 sch; 2009 SL No. 181 s 3 sch; 2009 SL No. 240 s 8; 2010 SL No. 155 s 3 sch; 2011 SL No. 115 s 3 sch; 2012 SL No. 102 s 3 sch; 2013 SL No. 122 s 3 sch; 2014 SL No. 128 s 3 sch; 2015 SL No. 53 s 100 Part 5 Repeal 12 Repeal The Retail Shop Leases Regulation 1994 is repealed. Schedule Businesses, goods or services section 9 (1) Antique and used goods retailing antiques coins disposal store pawnbroking second hand books second hand clothes second hand furniture second hand goods second hand jewellery stamp dealing

Bread and cake retailing bakery selling directly to consumers biscuits bread cakes cheesecakes pastries pies quiches

Clothing retailing bridal wear sale or hire clothing clothing accessories clothing alterations and repairs clothing hire costume wear sale or hire embroidery equestrian wear formal wear sale or hire fur clothing gloves handbags hosiery leather clothing lingerie millinery screen-printing sunglasses work clothing

Dine in retailing café carvery coffee lounge fast food restaurant snack bar

Domestic appliance retailing air conditioners barbecue equipment computers electronic appliance hire electronic equipment or supplies fans floor polishers gas heating appliances heating equipment hot water systems household appliances kerosene heaters mobile phones mobile phones oil heaters pocket calculators, electronic radio receiving sets refrigerators shavers, electric sound reproducing equipment stoves television antennae television sets vacuum cleaners washing machines

Domestic hardware and household goods retailing brushware chinaware cooking utensils crockery cutlery dinnerware enamelware fixtures and fittings garden tools glassware hardware, domestic household goods kitchenware lawn mowers lighting products paint picnicware plastic containers plumbing silverware tools wall decorations wallpaper

Fabrics and other soft goods retailing beads blankets curtains drapery dressmaking supplies fabrics, textiles haberdashery household textiles interior decorations linen, household piece-goods soft furnishings yarns

Floor covering retailing carpets floor coverings floor rugs floor tiles parquetry

Flower retailing cut flowers display foliage dried flowers floral accessories florist hydroponics plant pots

Footwear and footwear repair retailing footwear footwear repair

Fresh meat, fish and poultry retailing butcher delicatessen meat retailing poultry, fresh seafood, fresh

Fruit and vegetable retailing fruit, fresh greengroceries vegetables, fresh

Furniture retailing antique reproduction furniture awnings bedding blinds furniture, household furniture, office mattresses

Household appliance installation and repair services—electrical household appliance installations household appliance repairs

Liquor retailing, for off-premises consumption alcoholic beverages beer-making and soft drink-making supplies

Miscellaneous retailing adult merchandise amusement parlour aquariums art bar accessories batteries, other than motor vehicle batteries boat chandlery briefcases children’s amusements condoms craft crystals department store dry cleaning and laundry duty free engraving exercise equipment fairy flags glamour photography or makeover studio irrigation and pumps key cutting or duplicating leather goods mobility aids motor vehicle accessories, other than from a tyre shop office equipment party supplies pets, pet supplies and pet grooming prams service station Note— See section 17 (Application of Act to leases of service stations) of the Act. small job printers souvenirs swimming pool and spa accessories tobacco, cigarettes and accessories travel agency and booking travel goods trophies umbrellas

Music and video hire and retailing audio cassettes compact discs digital video discs musical instruments music equipment phonograph records video cassettes

Newspaper, book, stationery, arts and crafts retailing artist supplies books casket and gaming tickets gifts gift wrapping greeting cards magazines newsagency novelties periodicals picture framing postcards prints and posters religious goods rubber stamps stationery writing materials

Pharmaceutical, cosmetic and toiletry retailing barber beauty products beauty salon body piercing cosmetics hairdressing hearing aids optical goods perfumes pharmacy tattoos toiletries wigs

Photographic equipment retailing cameras fast photo processing photographic equipment photographic film or paper projectors video cameras

Specialised food retailing confectionery fruit juices health and vitamin products non-alcoholic drinks nuts smallgoods specialised foods

Sport and camping equipment retailing ammunition bait and fishing tackle bicycles camping equipment martial arts equipment firearms snow skis sporting equipment surf boards and accessories

Supermarket and grocery stores convenience or mixed business groceries grocery supermarket

Takeaway food (ready for immediate consumption) retailing chicken, cooked cut lunches fish and chips hamburgers ice-cream milk drinks pizza soft drinks takeaway food

Toy and game retailing dolls games hobby equipment hobby supplies toy and game repairs toys

Watch and jewellery retailing clocks jewellery precious stones watches