The Retail Leases Regulations 2013 took effect on 24 April 2013. The main changes brought about by these Regulations are:
1. New Disclosure Statement formats
There are now four prescribed Disclosure Statements which, generally, are easier to complete for use as follows:
(a) New lease of premises in a shopping centre
The new shopping centre lease Disclosure Statement is much the same as the Disclosure Statement previously used. There are some minor amendments.
(b) New lease of premises not in a shopping centre
The new non-shopping centre lease Disclosure Statement no longer includes provisions designed specifically for shopping centres and now does not include ‘key disclosure items’. This simplifies completion.
(c) Lease renewals
The lease renewal Disclosure Statement is only about four pages long and reduces substantially the matters to be disclosed.
(d) Lease transfers
The lease transfer Disclosure Statement is only about six pages long and also substantially reduces the information required to be disclosed.
The old form Disclosure Statement can be used until 22 July 2013.
2. Occupancy Cost
The Occupancy Cost exemption threshold for exclusion from the Act is now $1 million exclusive of GST.
Fire services levies and owners corporation fees are now included as prescribed outgoings.
An auditor’s certificate of outgoings has to include confirmation that an item of outgoings which exceeds 10% of all outgoings (previously 0.1%) is correct.
4. Alteration | demolition works
All the new Disclosure Statements require disclosure of alteration or demolition works planned by or known in relation to:
- the premises;
- the building; or
- surrounding roads to the premises/building.
For more information, please contact a member of our Property team on (03) 8600 8888.
Note: This update is a guide only and is not intended to constitute legal advice.