Australian Capital Territory Current Acts

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LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 70

Recoverable outgoings

    (1)     The lessor may only recover the following outgoings in relation to leased premises from the tenant:

        (a)     an amount that is a reasonable expense directly related to the operation of, or a reasonable expense of repairing or maintaining—

              (i)     for premises located in the retail area of a shopping centre—an area used for or in connection with the retail area of the shopping centre that contains the premises; or

              (ii)     in any other case—the building that contains the premises;

        (b)     rates, taxes, levies or other statutory charges payable by the lessor because the lessor is the lessor or occupier of the building that contains the premises, or the lessor of the land on which the building is located;

        (c)     in relation to premises located in the retail area of a shopping centre—an amount that is a reasonable cost of promoting the premises or centre;

        (d)     an outgoing for expenditure incurred in obtaining statistical information.

    (2)     However, if the accounting system used by the lessor is a cash accounting system, the lessor may only recover from a tenant an outgoing mentioned in subsection (1) (a) or (b) if the expenditure is made during the term of the lease.

    (3)     Also, a lessor may not recover an outgoing from a tenant in relation to premises if the lessor has already recovered the outgoing from a previous tenant of the premises under a different accounting system.

    (4)     Further, subsection (1) (a) (ii) does not allow the lessor to recover from the tenant an outgoing in relation to premises that are usually leased but are currently unleased.



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