Western Australian Bills

[Index] [Search] [Download] [Related Items] [Help]


This is a Bill, not an Act. For current law, see the Acts databases.


COMMERCIAL TENANCY (RETAIL SHOPS) AGREEMENTS AMENDMENT BILL 1997

                    WESTERN AUSTRALIA


                  LEGISLATIVE ASSEMBLY




                  (As amended in Committee)




     COMMERCIAL TENANCY
  (RETAIL SHOPS) AGREEMENTS
     AMENDMENT BILL 1997
                         A BILL FOR



AN ACT to amend the Commercial Tenancy (Retail Shops)
    Agreements Act 1985 and for related purposes.



The Parliament of Western Australia enacts as follows:



Short title

1. This Act may be cited as the Commercial Tenancy (Retail
Shops) Agreements Amendment Act 1997.




                          No. 110 -- 2
                            Commercial Tenancy (Retail Shops)
cl. 2                        Agreements Amendment Bill 1997


        Commencement

        2. This Act comes into operation on such day as is, or days as
        are respectively, fixed by proclamation.


        Principal Act

 5      3. In this Act, the Commercial Tenancy (Retail Shops)
        Agreements Act 1985* is referred to as the principal Act.

             [* Reprinted as at 27 September 1991.]


        Section 3 amended

        4.    (1)    Section 3 (1) of the principal Act is amended --

10             (a)    by deleting the definition of ''accountant''        and
                      substituting the following definition --
                      ''
                           ''accountant'' means a member of --

                               (a)   The Institute of Chartered
15                                   Accountants in Australia;

                               (b)   The Australian Society of Certified
                                     Practising Accountants; or

                               (c)   The National         Institute     of
                                     Accountants;
20                                                                            '';

               (b)    by deleting the definition of ''key-money''         and
                      substituting the following definition --
                      ''
                           ''key-money'' means --

25                             (a)   money that is to be paid by, or at the
                                     request or direction of, a tenant; or


                                            2
                 Commercial Tenancy (Retail Shops)
                  Agreements Amendment Bill 1997                            cl. 4


                      (b)   any benefit that is to be conferred by,
                            or at the request or direction of, a
                            tenant,

                      by way of a premium or something of a like
5                     nature in consideration of the granting of,
                      or agreeing to grant, a lease or the renewal
                      of a lease or the consenting to an
                      assignment of a lease or the sub-leasing of
                      the premises the subject of a lease;
10                                                                    '';

     (c)   in the definition of ''retail shop lease'' by deleting
           paragraph (a) and ''or'' at the end of that paragraph
           and substituting the following --

           ''
15              (a)   the total retail floor area to which
                      that lease applies (including, in the case
                      of a building with 2 or more floor levels,
                      the area of every floor level or part thereof
                      to which that lease applies) exceeds
20                    1 000 square metres; or
                                                                      '';

     (d)   by deleting the definition of ''retail shopping centre''
           and substituting the following definition --

           ''
25              ''retail shopping centre'' means a cluster of
                      premises --

                      (a)   5 or more of which are used wholly or
                            predominantly for the carrying on
                            of --

30                          (i)    a business involving the sale of
                                   goods by retail; or

                            (ii)   a specified business; and

                                     3
                    Commercial Tenancy (Retail Shops)
cl. 4                Agreements Amendment Bill 1997


                        (b)   all of which --

                              (i)    have, or upon being leased
                                     would have, a common head
                                     lessor; or

 5                            (ii)   comprise lots on a single strata
                                     plan under the Strata Titles
                                     Act 1985,

                              whether the premises are in a single
                              storey building or a multi-level
10                            building;
                                                                        '';
              and

        (e)   by inserting in the appropriate alphabetical positions
              the following definitions --
15            ''
                   ''accounting year'' in relation to a lease, means
                         the accounting year specified in the lease
                         or, if not so specified, a financial year;

                   ''management fees'' means fees in respect of
20                      costs for or incidental to the collection of
                        rent or other moneys or the management of
                        premises including, but not limited to, such
                        of those costs --

                        (a)   in respect of --
25                            (i)    management offices;
                              (ii)   plant and equipment;
                              (iii) staff;

                              and

                        (b)   as are of a kind prescribed;


                                       4
                       Commercial Tenancy (Retail Shops)
                        Agreements Amendment Bill 1997                            cl. 4


                     ''retail floor area'', in relation to a retail shop,
                           means the floor area of the retail shop
                           designed and available for use for the
                           carrying on of business in the retail shop;

 5                   ''total lettable area'', in relation to a retail
                           shopping centre, means the aggregate of
                           the retail floor areas of the retail shops (or
                           areas set aside for retail shops) in the
                           retail shopping centre;
10                                                                          ''.
        (2) Section 3 (3) of the principal Act is repealed and the
     following subsection is substituted --

     ''
             (3) A reference in this Act to a question arising under a
15        retail shop lease includes a reference to --

               (a)   a question whether or not a lease exists or has
                     existed;

               (b)   a question whether or not a lease is or was a
                     retail shop lease;

20             (c)   a question arising --

                     (i)    in relation to any communication, including
                            a disclosure statement under section 6,
                            between the parties to the retail shop lease,
                            prior to their entry into the retail shop
25                          lease, which communication was material
                            to the terms and conditions of the retail
                            shop lease; or

                     (ii)   in relation to the retail shop lease under a
                            provision of this Act;




                                         5
                          Commercial Tenancy (Retail Shops)
cl. 5                      Agreements Amendment Bill 1997


                  (d)   a matter that is in dispute between the landlord
                        and the tenant under section 12 in relation to --

                        (i)    operating expenses of the landlord under
                               the retail shop lease generally;

 5                      (ii)   an allocation made under section 12
                               (1) (b) of the proportion of those operating
                               expenses; or

                        (iii) a determination of the relevant proportion
                              for the purposes of section 12;

10                      or

                  (e)   any other matter that is in dispute between the
                        landlord and the tenant in connection with the
                        retail shop lease, whether or not that matter is
                        dealt with by the provisions of the retail shop
15                      lease.
                                                                              ''.


        Section 6A inserted

        5. After section 6 of the principal Act the following section is
        inserted --

20      ''
             Tenant guide

             6A. (1) Where a retail shop lease is entered into and
             the retail shop lease does not incorporate a tenant guide in
             accordance with subsection (4), the tenant may, in addition
25           to exercising any other right, do either or both of the
             following --

                  (a)   within 60 days after the lease was entered into,
                        give to the landlord written notice of termination
                        of the lease;

                                            6
                       Commercial Tenancy (Retail Shops)
                        Agreements Amendment Bill 1997                          cl. 5


             (b)     apply in writing to the Tribunal for an order that
                     the landlord pay compensation to the tenant in
                     respect of pecuniary loss suffered by the tenant
                     as a result of the failure to incorporate the
 5                   tenant guide in the retail shop lease in
                     accordance with subsection (4).

        (2) Where the tenant under a retail shop lease gives to
     the landlord a notice of termination under subsection (1)
     the lease terminates upon the expiry of a period of 14 days
10   after the notice was given.

        (3) In addition to exercising the tenant's rights under
     subsection (1) (b), the tenant may, after the expiry of the
     period referred to in subsection (1) (a), apply in writing to
     the Tribunal for an order that the retail shop lease be
15   terminated.

        (4) The tenant guide shall be in the prescribed form
     and located in the prescribed position in the retail shop
     lease.

         (5) Where the tenant under a retail shop lease (in this
20   subsection referred to as ''the outgoing tenant'') assigns
     the lease to another person (in this subsection referred to as
     ''the incoming tenant''), nothing in this section gives to
     the incoming tenant a right to terminate the lease that the
     outgoing tenant would not have had if he or she had
25   continued as the tenant under the lease.

       (6)         The tenant guide is not required to be included --

             (a)     on the renewal of a retail shop lease under an
                     option (including the option arising by reason of
                     section 13 (1)); or

30           (b)     on the assignment of a retail shop lease.
                                                                          ''.



                                        7
                           Commercial Tenancy (Retail Shops)
cl. 6                       Agreements Amendment Bill 1997


        Section 10 amended

        6. Section 10 (3) of the principal Act is repealed and the
        following subsections are substituted --

        ''
 5              (3) A provision in a retail shop lease to the effect that
             the landlord may withhold consent to an assignment of the
             lease by a tenant unless the tenant or a guarantor of the
             tenant, agrees to pay any moneys that are payable under
             the lease by the person to whom it is proposed to assign the
10           lease is void.

                (4) A provision in a retail shop lease to the effect that
             the landlord or a person claiming through the landlord may
             recover from the assignor or from a guarantor of the
             assignor, any moneys that are payable under the lease by
15           the tenant to whom the lease has been assigned is void.

               (5)     In this section --

                     ''assignor'' means a tenant who assigns a lease in
                           accordance with this section;

                     ''guarantor'' means a person who has guaranteed the
20                        performance by a tenant of the tenant's
                          obligations under a retail shop lease or a person
                          who has indemnified a landlord against any loss
                          the landlord may incur as a result of the failure
                          by a tenant to comply with those obligations;

25                   ''moneys payable under the lease'' includes moneys
                          recoverable by action under the lease.
                                                                              ''.




                                            8
                      Commercial Tenancy (Retail Shops)
                       Agreements Amendment Bill 1997                            cl. 7


     Section 11 amended

     7. (1) Section 11 (1) of the principal Act is amended by
     deleting ''the basis on which or the formula by which'' and
     substituting the following --

 5   ''
          , in respect of each occasion on which the review is to be
          made, a single basis on which
                                                                           ''.

        (2) Section 11 (2) of the principal Act is repealed and the
10   following subsections are substituted --

     ''
             (2) If a retail shop lease provides for the review during
          the currency of the retail shop lease of the amount of rent
          payable under the retail shop lease having regard to the
15        market rent of the retail shop concerned --

               (a)   that market rent shall, for that purpose, be
                     taken to be the rent obtainable at the time of
                     that review in a free and open market as if, all
                     the relevant factors, matters or variables used in
20                   proper land valuation practice having been taken
                     into account, that retail shop were vacant and to
                     let on similar terms as are contained in the
                     current retail shop lease;

               (b)   unless specific provision is made in the retail
25                   shop lease for the time at which a review may be
                     initiated, a party to the retail shop lease may not
                     more than 3 months before the date on which
                     that review is to be carried out and not more
                     than 6 months after that date, initiate the
30                   review by notice in writing served on the other
                     party to the retail shop lease; and




                                        9
                         Commercial Tenancy (Retail Shops)
cl. 7                     Agreements Amendment Bill 1997


                  (c)   a provision in the retail shop lease purporting to
                        preclude the increase or reduction of that market
                        rent or to limit the extent to which that market
                        rent may be increased or reduced is void.
 5
                (2a) A provision in a retail shop lease purporting to
             preclude the tenant from voluntarily disclosing the rent
             under the lease is void.
                                                                             ''.

          (3) After section 11 (3) of the principal Act the following
10      subsection is inserted --
        ''
                (3a) If the parties to a retail shop lease referred to in
             subsection (3) do not agree on the rent payable as a result
             of the review concerned, the rent payable immediately
15           before that review shall not be increased or reduced before
             the question is resolved or determined under this section,
             but nothing in this subsection prevents any increase or
             reduction in rent which takes place after that resolution or
             determination from being due and payable with effect from
20           the date of that review.
                                                                             ''.

            (4) Section 11 (5) of the principal Act is amended by deleting
        ''resolution'' and substituting the following --

        '' determination ''.

25        (5) After section 11 (5) of the principal Act the following
        subsections are inserted --

        ''
                (6) In determining a question under subsection (5), the
             Registrar shall act according to equity, good conscience and
30           the substantial merits of the case without regard to
             technicalities or legal forms, and shall not be bound by the
             rules of evidence, but may inform himself or herself on any
             matter in such manner as the Registrar thinks fit.


                                          10
                       Commercial Tenancy (Retail Shops)
                        Agreements Amendment Bill 1997                          cl. 8


             (7) For the purpose of determining a question under
          subsection (5) the Registrar may require the parties to
          furnish to the Registrar such valuations, documents or
          other information as the Registrar thinks fit and the parties
 5        shall comply with any such requirement.
                                                                          ''.


     Section 12 amended

     8. (1) Section 12 (1) of the principal Act is repealed and the
     following subsections are substituted --

10   ''
             (1) If provision is made in a retail shop lease for
          payment by the tenant, in addition to rent, of all or any of
          the operating expenses of the landlord --

               (a)   the amount payable by the tenant under the
15                   retail shop lease is limited to the items of
                     operating expenses that the retail shop lease
                     specifies are to be paid wholly or in part by the
                     tenant and does not include an amount in
                     respect of which the retail shop lease does not
20                   specify both --

                     (i)    how that amount is to be determined and,
                            when applicable, apportioned to the tenant;
                            and

                     (ii)   how and when that amount is to be paid by
25                          the tenant;

               (b)   the proportion of those operating expenses
                     payable by the tenant under the retail shop lease
                     shall not be greater than the relevant proportion
                     without the approval of the Registrar;




                                        11
                Commercial Tenancy (Retail Shops)
cl. 8            Agreements Amendment Bill 1997


        (c)   where --

              (i)    the premises the subject of the retail shop
                     lease are adjacent to, or form a cluster
                     with, one or more other premises which
 5                   have or, on being leased, would have a
                     common head lessor and are grouped
                     together for the purpose of allocating to
                     each of those premises a portion of
                     operating expenses; and

10            (ii)   any part of the operating expenses is
                     expenditure incurred as a result of some
                     only of the premises in the cluster being
                     open outside the standard trading hours,

              the retail shop lease shall be taken to provide
15            that a tenant whose retail shop was not so open
              is not required to make any payment of, and the
              landlord is not entitled to recover, the
              expenditure referred to in subparagraph (ii); and

        (d)   the retail shop lease shall be taken to provide
20            that --

              (i)    the tenant is not required to make any
                     payment of, and the landlord is not entitled
                     to recover, any such operating expenses in
                     respect of a year or part of a year until at
25                   least one month after the landlord has
                     given to the tenant annual estimates of
                     expenditure under each item of operating
                     expenses in respect of the year; and

              (ii)   the landlord is required to give to the
30                   tenant a written statement in accordance
                     with subsection (1a) (an ''operating
                     expenses statement'') that details all
                     expenditure by the landlord in each


                                 12
               Commercial Tenancy (Retail Shops)
                Agreements Amendment Bill 1997                      cl. 8


                   accounting period of the landlord during
                   the term of the lease on account of
                   operating expenses to which the tenant is
                   required to contribute.

 5   (1a)    An operating expenses statement --

       (a)    is to be given to the tenant within 3 months
              after the end of the accounting period to which it
              relates;

       (b)    if the relevant retail shop is in a retail shopping
10            centre, must include a statement of the current
              total lettable area of the retail shopping centre
              and details of any material change in that total
              lettable area during the period to which the
              statement relates;

15     (c)    is to be prepared in accordance with relevant
              principles and disclosure requirements of the
              applicable accounting standards made by the
              Australian Accounting Standards Board, as in
              force from time to time;

20     (d)    may be a composite statement (that is, it may
              relate to more than one tenant) if each tenant to
              which it relates is able to ascertain from the
              statement the information required by subsection
              (1) (d) (ii) that is relevant to that tenant; and

25     (e)    is to be accompanied by a report on the
              statement prepared by a registered company
              auditor within the meaning of the Corporations
              Law which includes a statement by the auditor
              as to whether or not the operating expenses
30            statement correctly states expenditure by the
              landlord during the accounting period concerned

                                13
                    Commercial Tenancy (Retail Shops)
cl. 8                Agreements Amendment Bill 1997


                   in respect of operating expenses to which the
                   tenant is required to contribute, and as to
                   whether or not the total amount of estimated
                   operating expenses for that period (as shown in
 5                 the estimate of operating expenses given to the
                   tenant) exceeded the total actual expenditure by
                   the landlord in respect of those operating
                   expenses during that period.

           (1b) The landlord shall bear half of the cost of an audit
10      referred to in subsection (1a) (e) and the other half of that
        cost shall be borne by --

             (a)   the tenant to whose premises that audit relates;
                   or

             (b)   if there is more than one tenant to whose
15                 premises that audit relates, jointly in the
                   relevant proportions.

           (1c) An operating expenses statement is not required to
        be accompanied by an auditor's report if the statement does
        not relate to any operating expenses other than land tax
20      (unless subsection (1g) applies), water, sewerage and
        drainage charges, local government rates and charges or
        insurance premiums and it is accompanied by copies of
        assessments, invoices, receipts or other proof of payment in
        respect of all expenditure by the landlord referred to in
25      subsection (1) (d) (ii).

           (1d) If a landlord does not comply with the
        requirement referred to in subsection (1) (d) (ii), the tenant
        is not obliged to pay, and the landlord is not entitled to
        recover, operating expenses from the date of that non-
30      compliance until the landlord complies with that
        requirement.




                                     14
                 Commercial Tenancy (Retail Shops)
                  Agreements Amendment Bill 1997                      cl. 8


        (1e) A tenant under a retail shop lease in respect of
     premises in a retail shopping centre --

          (a)   is not liable to contribute towards an operating
                expense of the landlord that is not specifically
 5              referable to any particular retail shop in the
                retail shopping centre unless the shop is one of
                the shops to which the operating expense is
                referable; and

          (b)   is not liable to contribute an amount in excess of
10              an amount calculated by multiplying the total
                amount of that operating expense by the
                proportion that the retail floor area of the shop
                bears to the aggregate of the retail floor areas of
                all the retail shops in the retail shopping centre
15              to which the operating expense is referable.

        (1f) If there is a provision in a retail shop lease in
     respect of any premises to the effect that the tenant is
     obliged to make a payment to or for the benefit of the
     landlord for management fees, the landlord is not entitled
20   to recover, and the tenant is not obliged to make, that
     payment.

        (1g) If provision is made in a retail shop lease for
     payment by the tenant of all or any of the land tax or
     metropolitan region improvement tax imposed in relation to
25   the land on which the retail shop is situated it is a term of
     that retail shop lease that the tenant shall only be obliged
     to pay, and the landlord shall only be able to recover,
     whether directly or indirectly, from the tenant in relation to
     that land --

30        (a)   where the premises the subject of the retail shop
                lease comprise the whole of the land, the
                notional land tax imposed; and




                                  15
                             Commercial Tenancy (Retail Shops)
cl. 8                         Agreements Amendment Bill 1997


                   (b)     where the premises the subject of the retail shop
                           lease do not comprise the whole of the land, the
                           relevant proportion of the notional land tax
                           imposed.
 5                                                                                ''.
          (2) After section 12 (2) of the principal Act the following
        subsection is inserted --
        ''
             (3)         In this section and section 12A --

10                 ''land tax'' means tax imposed by the Land Tax
                         Act 1976;

                   ''metropolitan region improvement tax'' means
                        metropolitan region improvement tax under the
                        Metropolitan Region Town Planning Scheme
15                      Act 1959;

                   ''notional land tax'' means land tax and
                         metropolitan region improvement tax calculated
                         on the basis that the land on which the tax is
                         assessed is the only land of which the landlord is
20                       the owner within the meaning of that term in
                         the Land Tax Assessment Act 1976;

                   ''operating expenses'', in relation to a landlord,
                        means expenses of the landlord in operating,
                        repairing or maintaining --
25                         (a)   a building of which a retail shop the subject
                                 of a retail shop lease to which the landlord
                                 is a party forms the whole or a part; or
                           (b)   if that retail shop is in a retail shopping
                                 centre, the building or buildings of which a
30                               retail shop the subject of a retail shop lease
                                 to which the landlord is a party forms the
                                 whole or a part and the common area,
                           and includes, if a strata titles levy is imposed on
                           the landlord, that part of the levy which relates

                                              16
            Commercial Tenancy (Retail Shops)
             Agreements Amendment Bill 1997                            cl. 8


          to expenses of the landlord in operating,
          repairing or maintaining the building or
          buildings of which the retail shop forms part or
          that building or those buildings and the common
 5        area, as the case requires;

     ''referable'', in relation to an operating expense for a
           retail shop, means the retail shop enjoys or
           shares the benefit resulting from the operating
           expense;

10   ''relevant proportion'', in relation to a retail shop,
           means --

          (a)   where the retail shop is situated in a retail
                shopping centre, the proportion that the
                retail floor area of the retail shop bears to
15              the total lettable area of the retail shopping
                centre at the commencement of the
                accounting year; or

          (b)   where the retail shop is adjacent to, or
                forms a cluster with, one or more other
20              premises which have or, on being leased,
                would have a common head lessor and are
                grouped together for the purpose of
                allocating to each of those premises a
                portion of an item of operating expenses,
25              the proportion that the retail floor area of
                the retail shop bears to the total lettable
                area of the premises in the cluster at the
                commencement of the accounting year;

     ''standard trading hours'' means the hours
30         prescribed for the purposes of subsection (1) (c);

     ''strata titles levy'' means a contribution levied
           under section 36 of the Strata Titles Act 1985.
                                                                 ''.


                             17
                            Commercial Tenancy (Retail Shops)
cl. 9                        Agreements Amendment Bill 1997


        Sections 12A, 12B and 12C inserted

        9. After section 12 of the principal Act the following sections
        are inserted --

        ''
 5           Sinking funds

             12A. (1) This section applies if provision is made
             in a retail shop lease in respect of premises in a retail
             shopping centre for payments to be made by the
             tenant into a sinking fund for repairs or maintenance
10           or any similar purpose.

                (2) The purpose of the sinking fund is to be
             specified in the retail shop lease.

               (3)         The lease shall be taken to provide that --

                     (a)     the landlord is to, as soon as practicable,
15                           pay amounts paid by the tenant for the
                             credit of the sinking fund into one or more
                             appropriately designated interest bearing
                             accounts held by the landlord with a bank
                             or society in the State;

20                   (b)     the landlord may only apply amounts
                             standing to the credit of the sinking fund
                             and interest earned on the fund for --

                             (i)    the purpose       mentioned         in
                                    subsection (2);

25                           (ii)   taxes and imposts payable on the
                                    fund;

                             (iii) the cost of an audit referred to in
                                   paragraph (c) (iii); and



                                            18
           Commercial Tenancy (Retail Shops)
            Agreements Amendment Bill 1997                  cl. 9


            (iv)   accounting, legal and other
                   professional costs reasonably incurred
                   in the preparation and approval of the
                   scheme of repayment referred to in
5                  paragraph (e);

     (c)    the landlord is to --
            (i)    keep full and accurate accounts of all
                   money received or held by the
                   landlord in respect of the sinking
10                 fund;
            (ii)   keep the accounts in such manner
                   that they can be conveniently and
                   properly audited;
            (iii) at the end of each accounting year
15                cause the accounts to be audited by
                  an auditor who is a registered
                  company auditor within the meaning
                  of the Corporations Law; and
            (iv)   within 3 months after the end of each
20                 accounting year deliver a copy of that
                   report to the tenant;

     (d)    subject to subsection (5), the landlord is
            liable to pay into the sinking fund any
            deficiency attributable to the failure by the
25          landlord or any predecessor in title of the
            landlord to comply with paragraph (a)
            or (b); and

     (e)    if the retail shopping centre is destroyed,
            demolished or ceases to operate the
30          landlord is to --
            (i)    prepare a     scheme   of   repayment
                   detailing --
                   (I)   the amount standing to the
                         credit of the sinking fund

                            19
                 Commercial Tenancy (Retail Shops)
cl. 9             Agreements Amendment Bill 1997


                                 (including any interest earned
                                 on the fund);

                          (II)   the relevant proportion of that
                                 amount to which each former
 5                               tenant is entitled; and

                          (III) the way in which the landlord
                                proposes to distribute that
                                amount based upon the relevant
                                proportion;

10                        and

                   (ii)   submit the scheme of repayment to
                          the Registrar for approval under
                          subsection (4).

           (4) The Registrar is to examine a scheme of
15      repayment submitted under subsection (3) (e) (ii) and
        may approve the scheme or require such amendments
        to be made to the scheme as the Registrar thinks fit
        and the landlord is to repay to each former tenant the
        amount set forth in the scheme of repayment or
20      amended scheme of repayment, as the case requires.

           (5) A landlord is only liable for a deficiency under
        subsection (3) (d) in respect of a claim for that
        deficiency notified to the landlord by the tenant within
        a period of 3 years following the receipt by the tenant
25      of the copy of the report of the auditor referred to in
        subsection (3) (c) (iv) disclosing the deficiency.

           (6) If a landlord does not comply with the
        requirement referred to in subsection (3) (c) (iv), the
        tenant is not obliged to pay, and the landlord is not
30      entitled to recover, payments to the sinking fund from
        the date of that non-compliance until the landlord
        complies with that requirement.


                                     20
                    Commercial Tenancy (Retail Shops)
                     Agreements Amendment Bill 1997                cl. 9


       (7)         In this section and in section 12B --

             ''bank'' means --
                     (a)   a bank as defined in section 5 of
                           the Banking Act 1959 of the
 5                         Commonwealth; or
                     (b)   a bank constituted by or under a law
                           of the State;

             ''former tenant'' in relation to premises means
                   the last tenant to carry on business at
10                 those premises;

             ''society'' means a society or foreign society
                   within the meaning of the Financial
                   Institutions (Western Australia) Code.


     Contribution to other funds and reserves by
15   tenants

     12B. (1) This section applies if provision is made
     in a retail shop lease in respect of premises in a retail
     shopping centre for payments to be made by the
     tenant into a fund (other than a fund referred to in
20   section 12A) or a reserve for marketing or promotion
     of the retail shopping centre or any similar purpose.

        (2) The purpose of the fund or reserve is to be
     specified in the retail shop lease.

       (3)         The lease shall be taken to provide that --

25           (a)     the landlord is to, as soon as practicable,
                     pay amounts paid by the tenant for the
                     credit of the fund or reserve into one or
                     more appropriately designated interest
                     bearing accounts held by the landlord with
30                   a bank or society in the State;

                                    21
              Commercial Tenancy (Retail Shops)
cl. 9          Agreements Amendment Bill 1997


        (b)    the landlord may only apply amounts
               standing to the credit of the fund or reserve
               and interest earned on the fund or reserve
               for --

 5             (i)    the purpose        mentioned       in
                      subsection (2);

               (ii)   taxes and imposts payable on the
                      fund or reserve;

               (iii) the cost of an audit referred to in
10                   paragraph (c) (iii); and

               (iv)   accounting, legal and other
                      professional costs reasonably incurred
                      in the preparation and approval of the
                      scheme of repayment referred to in
15                    paragraph (e);

        (c)    the landlord is to --

               (i)    keep full and accurate accounts of all
                      money received or held by the
                      landlord in respect of the fund or
20                    reserve;

               (ii)   keep the accounts in such manner
                      that they can be conveniently and
                      properly audited;

               (iii) at the end of each accounting year
25                   cause the accounts to be audited by
                     an auditor who is a registered
                     company auditor within the meaning
                     of the Corporations Law; and

               (iv)   within 3 months after the end of each
30                    accounting year deliver a copy of that
                      report to the tenant;

                               22
                Commercial Tenancy (Retail Shops)
                 Agreements Amendment Bill 1997                   cl. 9


          (d)    subject to subsection (5), the landlord is
                 liable to pay into the fund or reserve any
                 deficiency attributable to the failure by the
                 landlord or any predecessor in title of the
 5               landlord to comply with paragraph (a)
                 or (b); and

          (e)    if the retail shopping centre is destroyed,
                 demolished or ceases to operate the
                 landlord is to --

10               (i)    prepare a       scheme   of   repayment
                        detailing --

                        (I)    the amount standing to the
                               credit of the fund or reserve
                               (including any interest earned
15                             on the fund or reserve);

                        (II)   the proportion of that amount to
                               which each former tenant is
                               entitled; and

                        (III) the way in which the landlord
20                            proposes to distribute that
                              amount;

                        and

                 (ii)   submit the scheme of repayment to
                        the Registrar for approval under
25                      subsection (4).

        (4) The Registrar is to examine a scheme of
     repayment submitted under subsection (3) (e) (ii) and
     may approve the scheme or require such amendments
     to be made to the scheme as the Registrar thinks fit
30   and the landlord is to repay to each former tenant the
     amount set forth in the scheme of repayment or
     amended scheme of repayment, as the case requires.

                                   23
                      Commercial Tenancy (Retail Shops)
cl. 9                  Agreements Amendment Bill 1997


           (5) A landlord is only liable for a deficiency under
        subsection (3) (d) in respect of a claim for that
        deficiency notified to the landlord by the tenant within
        a period of 3 years following the receipt by the tenant
 5      of the copy of the report of the auditor referred to in
        subsection (3) (c) (iv) disclosing the deficiency.

           (6) If a landlord does not comply with the
        requirement referred to in subsection (3) (c) (iv), the
        tenant is not obliged to pay, and the landlord is not
10      entitled to recover, payments to the fund or reserve
        from the date of that non-compliance until the
        landlord complies with that requirement.


        Hours of operation

        12C. (1) A provision in a retail shop lease which
15      requires a tenant to open the retail shop the subject of
        the lease at specified hours or specified times is void.

          (2)      Where --

                (a)    a landlord has refused to renew a retail
                       shop lease; and

20              (b)    the tenant under the retail shop lease
                       believes that the refusal was because the
                       tenant did not open the retail shop the
                       subject of the lease at specified hours or
                       specified times,

25      the tenant may apply in writing to the Tribunal for an
        order that the landlord pay compensation to the
        tenant in respect of pecuniary loss suffered by the
        tenant as a result of the failure to renew the retail
        shop lease.
30                                                                  ''.



                                     24
                        Commercial Tenancy (Retail Shops)
                         Agreements Amendment Bill 1997                       cl. 10


     Section 24 amended

     10. After section 24 (a) of the principal Act the following
     paragraph is inserted --
     ''
 5        (aa) an application by a tenant for an order under
               section 6A (1) (b), 6A (3) or 12C (2);
                                                                            ''.


     Section 26 amended

     11. After section 26 (1a) of the principal Act the following
10   subsection is inserted --
     ''
            (1aa) The Tribunal may, where it considers it
          appropriate to do so, make an order terminating a retail
          shop lease under section 6A.
15                                                                          ''.


     Section 30 amended

     12.    Section 30 of the principal Act is amended --

            (a)   by inserting after the section designation ''30.'' the
                  subsection designation ''(1)''; and

20          (b)   by inserting the following subsection --
                  ''
                          (2) Regulations made under subsection (1)
                       prescribing standard trading hours for the
                       purposes of section 12 (1) (c) may prescribe those
25                     standard trading hours generally or in relation
                       to --

                            (a)   a specified class or classes of retail
                                  shop;




                                         25
                       Commercial Tenancy (Retail Shops)
cl. 13                  Agreements Amendment Bill 1997


                          (b)   a specified part or parts of the State;
                                or
                          (c)   a specified time or times of the year.
                                                                           ''.

 5   Section 31 amended

     13. Section 31 (1) of the principal Act is amended by deleting
     ''this Act'' where it first occurs and substituting the following --
     '' section 3 of the Commercial Tenancy (Retail Shops)
10      Agreements Amendment Act 1997
                                                                           ''.

     Saving and transitional

     14.   (1)   In this section --

           ''existing lease'' in relation to a provision of this Act
15               means a retail shop lease entered into --
                 (a)    before the coming      into   operation   of     that
                        provision; or
                 (b)    pursuant to an option granted in a retail shop
                        lease entered into before the coming into
20                      operation of that provision,
                 but does not include a retail shop lease to which the
                 provision does not apply by reason of section 4 of the
                 principal Act;

           ''new lease'' in relation to a provision of this Act means a
25              retail shop lease entered into on or after the coming
                into operation of that provision and --
                 (a)    includes an extension of the term of a retail shop
                        lease entered into before the coming into
                        operation of that provision if the extension is
30                      granted on or after the coming into operation of
                        that provision; but


                                       26
                           Commercial Tenancy (Retail Shops)
                            Agreements Amendment Bill 1997                 cl. 14


                     (b)    does not include a retail shop lease so entered
                            into pursuant to an option granted in a retail
                            shop lease entered into before the coming into
                            operation of that provision;

 5           ''retail shop lease'' has the same meaning as it has in the
                   principal Act.

        (2) Subject to subsection (3), the principal Act as amended
     by a provision of this Act applies only to and in relation to a new
     lease and the principal Act applies to and in relation to an
10   existing lease as if that provision had not been enacted.

       (3)         Each of --

             (a)     section 3 (1) of the principal Act as amended by
                     section 4 (1) (a) of this Act, only in relation to the
                     insertion of the definition of ''accountant'';

15           (b)     section 3 (3) of the principal Act as inserted by
                     section 4 (2) of this Act;

             (c)     section 11 (3a) of the principal Act as inserted by
                     section 7 (3) of this Act;

             (d)     section 11 (5) of the principal Act as amended by
20                   section 7 (4) of this Act; and

             (e)     section 11 (6) and (7) of the principal Act as inserted
                     by section 7 (5) of this Act,

     applies to and in relation to an existing lease and a new lease.

        (4) This section applies despite an agreement to the contrary
25   between the parties to a retail shop lease whether or not the
     agreement is contained in the retail shop lease.




                                          27
                    Commercial Tenancy (Retail Shops)
cl. 14               Agreements Amendment Bill 1997


       (5) This section does not affect the operation of section 22 (1)
     of the Commercial Tenancy (Retail Shops) Agreements
     Amendment Act 1990.




 


[Index] [Search] [Download] [Related Items] [Help]