Business owners have had enough of inquiries into shop leasing arrangements reaching a dead end.
The National Retail Association (NRA) has demanded action on uniform national shop leasing laws across Australia.
The issues that need to be addressed on a national level include the first right of refusal for tenants to renew their lease, better dispute resolution processes, fairer rent adjustment procedures, requirements around bank guarantees, transparency round incentives, and contractual obligations around store refits.
NRA chief executive officer, Trevor Evans, believes that current arrangements can create confusion and add unnecessary costs and regulatory burdens to retailers.
Evans and retail leasing specialist gave evidence to the Senate Standing Committee on Economics in Canberra last week.
“The NRA certainly supports a national approach to retail leasing arrangements to create a fairer system and reduce the burden on small to medium businesses, while also benefiting landlords. It’s the same position we gave to the Productivity Commission inquiry on this subject in 2008, and again in 2014 when it examined the retail industry. We commend the Senate Committee for its interest in the subject, but we urge them to keep up political pressure and make sure Federal and State Governments act on their recommendations.”
The NRA is Australia's largest retail organisation and represents the interests of retail, fast food and broader services across the country.