Changes to the Retail & Commercial Leases Act 1995 (SA)

On 3 July 2017, the State Government announced that it intends to make amendments to the Retail & Commercial Leases Act 1995 (“the Act”).  Details of the announcement are available here.

Amongst other things, the proposed amendments to the Act include:

  1. Clarification that retail shop leases can “move into” and “out of” the operation of the Act. 
  2. Clarification that the current rental threshold of $400,000.00 and other sums under the Act (such as security bonds) are exclusive of GST.
  3. Insertion of a review mechanism for the rental threshold under the Act (i.e. the Valuer-General must review the threshold within 2 years of these amendments coming into effect and thereafter every 5 years).
  4. Obligation on landlords to provide prospective tenants with an “information brochure” to the extent such a brochure is published by the Commissioner (note, there is currently no brochure published by the Commissioner).
  5. Obligation on landlords to return original bank guarantees within 2 months after a tenant completes performance of its obligations under the lease.

A copy of the Retail & Commercial Leases (Miscellaneous) Amendment Bill 2017 and the Second Reading Speech are available here.

Patrick Connelly

26 July 2017