Commercial leasing
Retail Leases Act advice in Victoria.
The Retail Leases Act 2003 (Vic) overrides what the lease says on a long list of issues, land tax, outgoings, disclosure, minimum terms, market reviews and costs. Whether it applies to your premises decides who pays for what. CMK Legal advises landlords and tenants in Melbourne on coverage, compliance and the consequences of getting it wrong.
Solicitor-reviewed
Coverage opinions from a Victorian commercial lawyer.
Fast turnaround
Clear answer on application, usually within days.
Fixed fee, quoted first
Fixed fee for a written coverage and compliance opinion.
Victorian leasing law
Acting for both landlords and retail tenants.
What the Act does.
The Act applies to premises used wholly or predominantly for the retail provision of goods or services to the public, subject to exclusions including occupancy costs above the prescribed threshold, certain listed corporations and specified uses set out in Ministerial determinations.
Where it applies, the tenant cannot contract out of the protections. These include a minimum five-year term, a prohibition on recovering land tax, restrictions on lease preparation costs, mandatory disclosure statements, outgoings estimates and annual reconciliations, controls on rent review methods including a ban on ratchet clauses, and a statutory process for assignment and for market rent determination.
The Act also imposes obligations on landlords for essential safety measures and repairs, and channels disputes through the Victorian Small Business Commission before VCAT.
Whether the Act applies is a legal question decided by use and occupancy cost, not by what the lease calls itself. A lease headed 'commercial lease' can still be a retail lease.
Why coverage under the Act matters.
Land tax and some outgoings cannot be passed on
A retail landlord cannot recover land tax from the tenant, and can only recover outgoings that have been properly estimated and reconciled. Charges made in breach of the Act are recoverable by the tenant.
Disclosure obligations carry real consequences
A landlord who fails to give a disclosure statement at least 14 days before the lease is entered into, or who gives a materially misleading one, exposes itself to the tenant withholding rent or terminating within the statutory period.
Minimum terms and option notices are mandatory
Retail leases carry a minimum five-year term unless a Small Business Commission certificate is obtained, and landlords must notify tenants of option dates and rent within set periods before the last date to exercise.
Disputes follow a defined pathway
Retail tenancy disputes go to the Victorian Small Business Commission for mediation, then to VCAT, where costs orders are unusual. That changes how a dispute should be run from day one.
Get advice on the Act if.
- You are unsure whether your premises are 'retail'
- Occupancy costs are near the prescribed threshold
- Your lease charges land tax to the tenant
- No disclosure statement was ever given
- The outgoings reconciliation has not been provided
- The lease has a ratchet clause at market review
- The term is under five years including options
- You are a landlord auditing a portfolio for compliance
Coverage can also change during a term, a change of use, or occupancy costs crossing the threshold, can bring premises in or take them out. If your circumstances have shifted, the position is worth re-checking.
How we advise on the Act.
- 01
Facts gathered
Use of the premises, occupancy costs, tenant entity and the lease documents are collected.
- 02
Coverage assessed
We apply the Act, the Ministerial determinations and current VCAT authority to decide whether it applies.
- 03
Compliance review
The lease and the landlord's conduct are checked against disclosure, outgoings, term and review requirements.
- 04
Our view
You receive a clear answer on coverage, the consequences and what money may be recoverable or at risk.
- 05
Remediation
Non-compliant clauses are amended, missing disclosure or reconciliations are issued, and charges corrected.
- 06
Recovery or defence
Where amounts have been wrongly charged, we pursue or defend them through the Commission and VCAT.
Fixed-fee Retail Leases Act advice.
A written coverage and compliance opinion is provided for a fixed fee. Remediating documents, recovering wrongly charged outgoings or land tax, and running a dispute are quoted separately once the position is known.
FAQs
Retail Leases Act FAQs.
Still unsure? Call us on (03) 9008 7224 and speak to a lawyer, not a call centre.
How do I know if the Act applies to my lease?
Can the parties agree the Act will not apply?
What happens if the landlord never gave a disclosure statement?
Can a retail landlord recover land tax?
Are outgoings estimates and reconciliations compulsory?
Does the Act give a minimum five-year term?
Related services.
Retail lease review
A lawyer's review of your retail lease and disclosure statement before you commit.
Learn moreLease disputes
Breach notices, rent arrears, repairs and VCAT proceedings resolved commercially.
Learn moreLease renewal & option exercise
Exercise your option on time and on the right terms, or renegotiate a new term.
Learn moreFind out where you stand under the Act.
Start online or book a consultation with a CMK Legal retail leasing solicitor in Richmond, Melbourne.