The Retail Shop Leases Act: What is it, and when does it apply?

The Retail Shop Leases Act 1994 (Qld) is a piece of legislation that was introduced with the purpose of promoting efficiency and equity in the conduct of retail businesses in Queensland.

The intention behind the Retail Shop Leases Act was to address the imbalance of power between large commercial landlords and small business tenants.

It does this by:

1. Prescribing strict disclosure requirements on both parties before a retail shop lease can be entered – so that the Tenant is educated as to what they are getting themselves into!
2. Restricting the landlord’s ability to impose unfair terms in the lease, including by: -
3. Limiting the landlord’s ability to pick and choose rent review mechanisms that will result in the highest rent throughout the term of the lease.
4. Limiting the types of outgoings that can be on-charged to the tenant.
5. Prescribing cost-effective mediation and dispute resolution processes.

The Retail Shop Leases Act applies to any business which is situated in a retail shopping centre or used wholly or predominantly for the carrying on of a ‘Retail Business’. 

A list of ‘Retail Businesses’ is prescribed in Schedule 1 of the Retail Shop Leases Regulation 2016 (Qld).

Still not sure if the Retail Shop Leases Act applies to you?

Contact Riley Rupp of MobbsMarr Legal on 07 4417 4417 for more information.