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LEASES (COMMERCIAL AND RETAIL) ACT 2001 - NOTES

Dictionary

(see s 4)

Note 1     The Legislation Act contains definitions and other provisions relevant to this Act.

Note 2     For example, the Legislation Act, dict, pt 1, defines the following terms:

              •     exercise

              •     function

              •     GST

              •     territory lease.

"accounting period", for a lessor, means a financial year or other period included in a disclosure notice under section 31 (Form of disclosure statements) or otherwise agreed between the parties.

"bond" means an amount paid or payable by a tenant as security for the performance of his or her obligations under a lease.

"certificate of occupancy"—see the Building Act 2004, dictionary.

"certified exclusionary clause"—see section 111.

"change of use lease"—see section 9.

"commencement day "means 1 July 2002.

"commercial premises"—see section 7 (When are premises commercial or retail premises?).

"conduct", in relation to a lease or to negotiations for the entering into of a lease, means an act or omission in relation to the lease or negotiations.

Examples of acts and omissions in relation to leases or negotiations

1     making a request or demand of a person in relation to the lease or negotiations

2     taking action to enforce the terms of the lease

3     an action or omission that causes a breach of the lease

Note     An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

"continuous occupation lease"—see section 10.

"core trading hours", for a shopping centre, means the hours when retail premises in the shopping centre are generally required to be open for business, whether the requirement is imposed by or under the lease or by or under another agreement or arrangement between the lessor and tenant or is imposed in another way.

"demolition", in relation to premises, includes any repair, renovation or reconstruction of a building containing the premises that cannot be carried out practicably without vacant possession of the premises.

"disclosure statement" means a disclosure statement under section 30.

"discretionary rent review clause" means a provision in a lease that—

        (a)     provides for rent to be set or changed in accordance with whichever of 2 or more methods of calculating the change would result in the highest rent; or

        (b)     has the effect of reserving to a party to the lease a discretion as to which of 2 or more methods of calculating initial rent or a change to rent is to apply; or

        (c)     has the effect of reserving to a party to the lease complete discretion as to the rate of rent to apply; or

        (d)     has the effect of preventing, or giving a person the power to prevent, a decrease if the provision for determining initial rent or rent variations otherwise operates in a way that rent might decrease.

"dispute"—

        (a)     for this Act generally—means a dispute to which this Act applies under section 17; and

        (b)     in relation to an application, for part 14 (Dispute resolution)—see section 143.

"entered into", for a lease—see section 5.

"excluded area—"see section 11 (What is an excluded area?).

"extend", under an option, includes renew under the option.

"initial rent" means the rent set at the beginning of a lease or renewal of a lease.

"key money" means an amount paid by or on behalf of a tenant to, or at the direction of, a lessor, or any benefit given to, or at the direction of, a lessor, but does not include—

        (a)     rent; or

        (b)     a payment for the goodwill or other assets of a business genuinely operated by the lessor that is sold or to be sold by the lessor to the tenant; or

        (c)     a bond or security deposit, or a guarantee by way of security; or

        (d)     an amount payable on account of outgoings; or

        (e)     a reasonable amount payable to someone for attendances on the tenant in relation to the preparation of documents that are relevant to a lease; or

        (f)     any reasonable amount payable to a lessor for goods and services provided, or to be provided, to the tenant; or

        (g)     an amount allowed to be paid under this Act.

"lease" means a lease, within the meaning of section 12 (What leases does this Act apply to?), to which this Act applies under that section.

Note     Pt 13 only applies to leases for premises in retail areas of shopping centres.

"lessor", of premises, means a person who grants a right to occupy the premises under a lease, and includes—

        (a)     a sublessor; and

        (b)     a person who receives the right to lease the premises by assignment from the lessor or by operation of law; and

        (c)     in relation to negotiations for a lease—a prospective lessor.

"lettable area", of premises, means the area of the premises worked out in accordance with section 13 (How to work out the lettable area of premises).

"Magistrates Court "means the Magistrates Court when exercising jurisdiction under this Act.

"market rent", of premises—see schedule 1 (Working out market rent).

"normal purpose", of leased premises that have been damaged, means the way the premises were ordinarily used by the tenant before they were damaged if the use was allowed under the lease.

"option", for a lease, means a right given under the lease for—

        (a)     the extension of the term of the lease; or

        (b)     the renewal of the lease for a further term.

"party", to an application, for part 14 (Dispute resolution)—see section 143.

"premises", for a lease, are the premises covered by the lease.

"recoverable outgoings" means outgoings recoverable under section 70.

"renewal", of a lease—see section 6 (When is a lease taken to be renewed for this Act?).

"rent" includes a component of rent.

"rent review" includes a change to rent payable on the exercise of an option under a lease, but does not include a predetermined rent change.

"retail area" means the area of a shopping centre other than an excluded area.

"retail premises"—see section 7 (2).

"shopping centre"—see section 8.

"small commercial premises" means commercial premises with a lettable area of no more than 300m2.

"taxable supply"—see the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), dictionary.

"tenant", of premises, means a person who has the right to occupy the premises under a lease, and includes—

        (a)     a subtenant; and

        (b)     a person who receives the right to occupy the premises by assignment from the tenant or by operation of law; and

        (c)     in relation to negotiations for a lease—a prospective tenant.

"termination notice" means a notice under section 117 (Right to terminate—no disclosure statement etc) or section 118 (Failure to notify material change in disclosure statement).

"turnover" includes gross takings, gross receipts and gross income.

"turnover rent "means rent, or the part of rent, based on the tenant's turnover.

"valuer" means a person who is competent in retail and commercial market rental valuations.

Endnotes

1     About the endnotes

Amending and modifying laws are annotated in the legislation history and the amendment history. Current modifications are not included in the republished law but are set out in the endnotes.

Not all editorial amendments made under the Legislation Act 2001, part 11.3 are annotated in the amendment history. Full details of any amendments can be obtained from the Parliamentary Counsel's Office.

Uncommenced amending laws are not included in the republished law. The details of these laws are underlined in the legislation history. Uncommenced expiries are underlined in the legislation history and amendment history.

If all the provisions of the law have been renumbered, a table of renumbered provisions gives details of previous and current numbering.

The endnotes also include a table of earlier republications.

2     Abbreviation key

A = Act

NI = Notifiable instrument

AF = Approved form

o = order

am = amended

om = omitted/repealed

amdt = amendment

ord = ordinance

AR = Assembly resolution

orig = original

ch = chapter

par = paragraph/subparagraph

CN = Commencement notice

pres = present

def = definition

prev = previous

DI = Disallowable instrument

(prev...) = previously

dict = dictionary

pt = part

disallowed = disallowed by the Legislative

r = rule/subrule

Assembly

reloc = relocated

div = division

renum = renumbered

exp = expires/expired

R[X] = Republication No

Gaz = gazette

RI = reissue

hdg = heading

s = section/subsection

IA = Interpretation Act 1967

sch = schedule

ins = inserted/added

sdiv = subdivision

LA = Legislation Act 2001

SL = Subordinate law

LR = legislation register

sub = substituted

LRA = Legislation (Republication) Act 1996

underlining = whole or part not commenced

mod = modified/modification

or to be expired

3     Legislation history

Leases (Commercial and Retail) Act 2001 No 18

notified 19 April 2001 (Gaz 2001 No 16)

s 1, s 2 commenced 19 April 2001 (IA s 10B)

remainder commenced 1 July 2002 (s 2)

as amended by

Statute Law Amendment Act 2002 No 30 pt 3.40

notified LR 16 September 2002

s 1, s 2 taken to have commenced 19 May 1997 (LA s 75 (2))

amdts 3.567-3.569 taken to have commenced 1 July 2002 (s 2 (2))

pt 3.40 remainder commenced 17 September 2002 (s 2 (1))

Justice and Community Safety Legislation Amendment Act 2003 A2003-2 pt 11

notified LR 3 March 2003

s 1, s 2 commenced 3 March 2003 (LA s 75 (1))

pt 11 commenced 4 March 2003 (s 2 (1))

Justice and Community Safety Legislation Amendment Act 2003 (No 2) A2003-47 pt 7

notified LR 31 October 2003

s 1, s 2 commenced 31 October 2003 (LA s 75 (1))

pt 7 commenced 1 November 2003 (s 2)

Construction Occupations Legislation Amendment Act 2004
A2004-13 sch 2 pt 2.19

notified LR 26 March 2004
s 1, s 2 commenced 26 March 2004 (LA s 75 (1))

sch 2 pt 2.19 commenced 1 September 2004 (s 2 and see Construction Occupations (Licensing) Act 2004 A2004-12, s 2 and CN2004-8)

Justice and Community Safety Legislation Amendment Act 2004 (No 2) A2004-32 pt 12

notified LR 29 June 2004

s 1, s 2 commenced 29 June 2004 (LA s 75 (1))

pt 12 commenced 30 June 2004 (s 2 (1))

Court Procedures (Consequential Amendments) Act 2004 A2004-60 sch 1 pt 1.34

notified LR 2 September 2004
s 1, s 2 commenced 2 September 2004 (LA s 75 (1))

sch 1 pt 1.34 commenced 10 January 2005 (s 2 and see Court Procedures Act 2004 A2004-59, s 2 and CN2004-29)

Statute Law Amendment Act 2005 A2005-20 sch 3 pt 3.33

notified LR 12 May 2005

s 1, s 2 taken to have commenced 8 March 2005 (LA s 75 (2))

sch 3 pt 3.33 commenced 2 June 2005 (s 2 (1))

Justice and Community Safety Legislation Amendment Act 2006 A2006-40 sch 2 pt 2.21

notified LR 28 September 2006

s 1, s 2 commenced 28 September 2006 (LA s 75 (1))

sch 2 pt 2.21 commenced 29 September 2006 (s 2 (1))

Statute Law Amendment Act 2007 (No 2) A2007-16 sch 3 pt 3.21

notified LR 20 June 2007

s 1, s 2 taken to have commenced 12 April 2007 (LA s 75 (2))

sch 3 pt 3.21 commenced 11 July 2007 (s 2 (1))

Planning and Development (Consequential Amendments) Act 2007 A2007-25 sch 1 pt 1.21

notified LR 13 September 2007
s 1, s 2 commenced 13 September 2007 (LA s 75 (1))

sch 1 pt 1.21 commenced 31 March 2008 (s 2 and see Planning and Development Act 2007 A2007-24, s 2 and CN2008-1)

Justice and Community Safety Legislation Amendment Act 2008 A2008-7 sch 1 pt 1.11

notified LR 16 April 2008

s 1, s 2 commenced 16 April 2008 (LA s 75 (1))

sch 1 pt 1.11 commenced 7 May 2008 (s 2)

Statute Law Amendment Act 2009 (No 2) A2009-49 sch 3 pt 3.43

notified LR 26 November 2009

s 1, s 2 commenced 26 November 2009 (LA s 75 (1))

sch 3 pt 3.43 commenced 17 December 2009 (s 2)

Fair Trading (Australian Consumer Law) Amendment Act 2010
A2010-54 sch 3 pt 3.14

notified LR 16 December 2010

s 1, s 2 commenced 16 December 2010 (LA s 75 (1))

sch 3 pt 3.14 commenced 1 January 2011 (s 2 (1))

Unit Titles (Management) Act 2011 A2011-41 sch 5 pt 5.8

notified LR 3 November 2011

s 1, s 2 commenced 3 November 2011 (LA s 75 (1))

sch 5 pt 5.8 commenced 30 March 2012 (s 2 and CN2012-6)

4     Amendment history

Commencement
s 2     om LA s 89 (4)

Disputes
s 17     table renum R5 LA

Lease costs
s 23     am A2009-49 amdt 3.101

Provision of copy of lease to tenant
s 25     am 2002 No 30 amdt 3.555; A2009-49 amdt 3.102

Copy of proposed lease to be provided
s 28     am 2002 No 30 amdt 3.555

Disclosure statements
s 30     am 2002 No 30 amdt 3.555

Form of disclosure statements
s 31     sub 2002 No 30 amdt 3.556

Rent setting or review if lease method void
s 49     am 2002 No 30 amdt 3.557

Market rent—rent reviews, options and renewals
s 52     am 2002 No 30 amdt 3.558, amdt 3.559

Appointment of new valuer if conflict of interest disclosed
s 57     am 2002 No 30 amdt 3.559

Outgoings—reports
s 66     am A2011-41 amdt 5.26

Adjustment of contributions to outgoings
s 67     am 2002 No 30 amdt 3.560

Notice of lessor's intentions regarding repair
s 88     am 2002 No 30 amdt 3.561

Refusal to consent to assignment or sublease
s 100     am A2010-54 amdt 3.37

Notice of absence of right of preference
s 110     am A2007-16 amdt 3.74

Tenant's right to terminate extended lease
s 116     am 2002 No 30 amdt 3.562, amdt 3.563

Procedure for termination of lease by lessor etc
s 122     am 2002 No 30 amdt 3.563

Confirmation of contested termination
s 123     am A2008-7 amdt 1.59

Confirmation of uncontested termination
s 124     am 2002 No 30 amdt 3.564

Content of termination orders
s 125     am 2002 No 30 amdt 3.565

Jurisdiction
s 144     sub A2003-2 s 57
    am A2003-47 s 27; A2004-60 amdt 1.164, amdt 1.165

Applications that may be made
s 145     sub A2003-2 s 57
    am A2004-60 amdt 1.166

Procedures
s 151     am A2004-60 amdt 1.167, amdt 1.168
    (2), (4), (5) exp 1 July 2006 (s 151 (5))
    ss renum R11 LA

Appeals to Supreme Court
s 155     sub A2006-40 amdt 2.118

Order by Supreme Court on appeal
s 156     am A2004-60 amdt 1.169
    om A2006-40 amdt 2.118

Approved forms
s 157A     ins 2002 No 30 amdt 3.566

Regulation-making power
s 158     am A2004-60 amdt 1.170

Transitional
pt 16 hdg     exp 30 June 2006 (s 171)

Transitional
div 16.1 hdg     om R1 LA (see also 2002 No 30 amdt 3.567)

Definitions for pt 16
s 159 hdg     sub 2002 No 30 amdt 3.568
s 159     exp 30 June 2006 (s 171)

Pre-existing referrals
s 160     exp 30 June 2006 (s 171)

Provisions required to be included—application to pre-existing leases
s 161     exp 30 June 2006 (s 171)

Lessor's intentions about renewal
s 162     exp 30 June 2006 (s 171)

Preference to existing tenants
s 163     exp 30 June 2006 (s 171)

Provisions taken to be included—application to pre-existing leases
s 164     exp 30 June 2006 (s 171)

Application of Act to disputes under code
s 165     exp 30 June 2006 (s 171)

Approved handbook and pre-existing leases
s 166     exp 30 June 2006 (s 171)

Tribunal decisions
s 167     exp 30 June 2006 (s 171)

Application of Act to leases code applied to
s 168     exp 30 June 2006 (s 171)

Saving of certain court orders for relief
s 168A     ins A2003-2 s 58
    exp 30 June 2006 (s 171)

Transitional regulations
s 169     exp 30 June 2004 (s 171 (2))

Modification of pt 16's operation
s 170     exp 30 June 2004 (s 171 (2))

Expiry of pt 16
s 171 hdg     am R1 LA (see also sub 2002 No 30 amdt 3.569)
s 171     am R1 LA (see also sub 2002 No 30 amdt 3.569)
    sub A2004-32 s 88
    (2) exp 30 June 2004 (s 171 (2))
    exp 30 June 2006 (s 171)

Consequential repeals and amendments
div 16.2 hdg     exp 1 July 2002 (s 176)

Repeal
s 172     exp 1 July 2002 (s 176)

Amendment of Land Titles Act
s 173     exp 1 July 2002 (s 176)

Amendment of Magistrates Court Act
s 174     exp 1 July 2002 (s 176)

Amendment of Magistrates Court (Civil Jurisdiction) Act
s 175     exp 1 July 2002 (s 176)

Expiry of div 16.2
s 176     exp 1 July 2002 (s 176)

Dictionary
dict     am 2002 No 30 amdt 3.570; A2007-25 amdt 1.94
    def certificate of occupancy sub A2004-13 amdt 2.78
    def continuous occupation lease ins A2005-20 amdt 3.186
    def dispute sub A2008-7 amdt 1.60
    def enter into om A2005-20 amdt 3.187
    def entered into ins A2005-20 amdt 3.187
    def GST om R8 LA
    def party ins A2008-7 amdt 1.61
    def retail premises ins A2005-20 amdt 3.188
    def territory lease om A2007-25 amdt 1.95

5     Earlier republications

Some earlier republications were not numbered. The number in column 1 refers to the publication order.

Since 12 September 2001 every authorised republication has been published in electronic pdf format on the ACT legislation register. A selection of authorised republications have also been published in printed format. These republications are marked with an asterisk (*) in column 1. Electronic and printed versions of an authorised republication are identical.

Republication No and date

Effective

Last amendment made by

Republication for

R1
1 July 2002

1 July 2002–
16 Sept 2002

not amended

new Act and commenced expiry

R1 (RI)
19 Sept 2002

1 July 2002–
16 Sept 2002

A2002-30

reissue for retrospective amendments by A2002-30

R2
19 Sept 2002

17 Sept 2002–
3 Mar 2003

A2002-30

amendments by A2002-30

R3
4 Mar 2003

4 Mar 2003–
31 Oct 2003

A2003-2

amendments by A2003-2

R4*
1 Nov 2003

1 Nov 2003–
29 June 2004

A2003-47

amendments by A2003-47

R5
30 June 2004

30 June 2004–
30 June 2004

A2004-32

amendments by A2004-32

R6
1 July 2004

1 July 2004–
31 Aug 2004

A2004-32

commenced expiry

R7
1 Sept 2004

1 Sept 2004–
9 Jan 2005

A2004-32

amendments by A2004-13

R8*
10 Jan 2005

10 Jan 2005–
1 June 2005

A2004-60

amendments by A2004-60

R9
2 June 2005

2 June 2005–
30 June 2006

A2005-20

amendments by A2005-20

R10
1 July 2006

1 July 2006–
1 July 2006

A2005-20

commenced expiry

R11
2 July 2006

2 July 2006–
28 Sept 2006

A2005-20

commenced expiry

R12
29 Sept 2006

29 Sept 2006–
10 July 2007

A2006-40

amendments by A2006-40

R13
11 July 2007

11 July 2007–
30 Mar 2008

A2007-16

amendments by A2007-16

R14
31 Mar 2008

31 Mar 2008–
6 May 2008

A2007-25

amendments by A2007-25

R15
7 May 2008

7 May 2008–
16 Dec 2009

A2008-7

amendments by A2008-7

R16*
17 Dec 2009

17 Dec 2009–
31 Dec 2010

A2009-49

amendments by A2009-49

R17
1 Jan 2011

1 Jan 2011–
29 Mar 2012

A2010-54

amendments by A2010-54







© Australian Capital Territory 2012


ACT
Crest high res small
Australian Capital Territory

A2001-18

Republication No 18

Effective: 30 March 2012

Republication date: 30 March 2012

Last amendment made by A2011-41




Unauthorised version prepared by ACT Parliamentary Counsel's Office

About this republication

The republished law

This is a republication of the Leases (Commercial and Retail) Act 2001

(including any amendment made under the Legislation Act 2001, part 11.3 (Editorial changes)) as in force on 30 March 2012

. It also includes any commencement, amendment, repeal or expiry affecting this republished law to 30 March 2012

.

The legislation history and amendment history of the republished law are set out in endnotes 3 and 4.

Kinds of republications

The Parliamentary Counsel's Office prepares 2 kinds of republications of ACT laws (see the ACT legislation register at www.legislation.act.gov.au):

              • authorised republications to which the Legislation Act 2001 applies

              • unauthorised republications.

The status of this republication appears on the bottom of each page.

Editorial changes

The Legislation Act 2001, part 11.3 authorises the Parliamentary Counsel to make editorial amendments and other changes of a formal nature when preparing a law for republication. Editorial changes do not change the effect of the law, but have effect as if they had been made by an Act commencing on the republication date (see Legislation Act 2001, s 115 and s 117). The changes are made if the Parliamentary Counsel considers they are desirable to bring the law into line, or more closely into line, with current legislative drafting practice.

This republication does not include amendments made under part 11.3 (see endnote 1).

Uncommenced provisions and amendments

If a provision of the republished law has not commenced, the symbol  U  appears immediately before the provision heading. Any uncommenced amendments that affect this republished law are accessible on the ACT legislation register (www.legislation.act.gov.au). For more information, see the home page for this law on the register.

Modifications

If a provision of the republished law is affected by a current modification, the symbol  M  appears immediately before the provision heading. The text of the modifying provision appears in the endnotes. For the legal status of modifications, see the Legislation Act 2001, section 95.

Penalties

At the republication date, the value of a penalty unit for an offence against this law is $110 for an individual and $550 for a corporation (see Legislation Act 2001, s 133).

ACT
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Australian Capital Territory

Leases (Commercial and Retail) Act 2001


Endnotes101

ACT
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Australian Capital Territory

Leases (Commercial and Retail) Act 2001



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