REINSW will lodge a submission with the NSW Government this week in relation to the proposed amendments to the Retail Leases Act 1994.
The submission comes after the NSW Minister for Small Business and Primary Industries Katrina Hodgkinson released a discussion paper on the review of the Act late last year.
REINSW CEO Tim McKibbin said the submission strongly advocates the importance of a standard retail lease in the interest of all parties.
“The Retail Leases Act already heavily prescribes many retail lease provisions in an attempt to address the perceived inequity in the respective bargaining powers of the landlord and the tenant,” Mr McKibbin said.
“Moving to a standard retail lease will better reflect Parliament’s intentions."
According to Mr McKibbin, many retail leases in the market are unnecessarily complex and, as a consequence, hard to understand for both the landlord and the tenant.
“REINSW believes that prescribing a standard retail lease will create a more efficient retail leasing environment that is both cost effective and avoids pointless delays,” he said.
“There are those that argue that a standard retail lease doesn’t allow for unique circumstances to be captured. In the model we are proposing there will be provision for ‘special conditions’, provided they do not affect the standard document.”
Mr McKibbin noted that standardising the lease will also facilitate dispute resolution.
“The NSW Civil and Administrative Tribunal will not waste time determining the precise interpretation and application of different clauses regulating the same matter, but will be able to make determinations from familiarity with the standard lease, saving time and providing useful precedent for the market.”
A copy of REINSW’s submission will be available for download at www.reinsw.com.au/lobbying.
Download a copy of the discussion paper from the Small Business Commissioner’s website.
Submissions to the review can be made via email to email@example.com and will close on Friday, 7 February 2014.