The NSW Government has implemented significant changes to the NSW Retail Leases Act, with increased transparency and fairness for retailers.
Australian Retailers Association director Russell Zimmerman, said the improved retail lease protections and streamlined processes will create stronger and fairer relationships between retail tenants and landlords.
“As the retail industry is constantly evolving it’s great to see the NSW Government implementing progressive changes that ensure the legislation remain relevant to all retailers throughout Australia.
The Retail Leases Amendment (Review) Bill 2016 was presented to NSW Parliament on Tuesday to introduce reforms to the Retail Leases Act 1994 to improve fairness in the marketplace.
“The amended Act will give retailers a better understanding of retail centre values and side deals, ensuring leasing costs are transparent for both large and small retail businesses,” Zimmerman said.
“These significant changes will ensure greater transparency and certainty about retail lease deals during negotiations and simplify the process of transferring a retail lease.”
A Retail Code of Industry Practice has been developed by the ARA, Franchise Council and Pharmacy Guild who have managed with the State Government to have the Shopping Centre Council of Australia agree to sign the code.
“The Code will address information asymmetry and encourage the reporting of sales and occupancy costs by category, giving retailers a better understanding of how a shopping centre is performing,” Zimmerman said.
“This Code allows retailers greater transparency when negotiating lease deals, not only enhancing competition in the retailing space, but also putting retailers on a level playing field with landlords,” he said.