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Where am I now? Lawlink > Administrative Decisions Tribunal of NSW > About Us > Administrative Decisions Tribunal: Retail Leases Division
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Administrative Decisions Tribunal: Retail Leases Division
Are the premises a retail shop?
Is the lease covered by the Act?
Where the premises are leased as a shop and a residence are the premises leased predominantly for a retail shop?
Are the premises a retail shop?
For the Retail Leases Act to apply your business must either
- be included in Schedule 1 of the Retail Leases Act
- be in premises used for carrying on any business in a retail shopping centre .
Retail shopping centre means a cluster of premises that has all of the following attributes:
(a) at least 5 of the premises are used wholly or predominantly for the carrying on of one or more of the businesses specified in Schedule 1
(b) the premises are all owned by the same person, or have (or would if leased have) the same lessor or the same head lessor, or comprise lots within a single strata plan under the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold Development) Act 1986.
(c) the premises are located in the one building or in 2 or more buildings that are either adjoining or separated only by common areas or other areas owned by the owner of the retail shops,
(d) the cluster of premises is promoted as, or generally regarded as constituting, a shopping centre, shopping mall, shopping court or shopping arcade.
The Retail Leases Act 1994 does not apply to the following retail shops (see section 5):
(a) shops that have a lettable area of 1,000 square metres or more
(b) shops that are used wholly or predominantly for the carrying on of a business by the lessee on behalf of the lessor
(c) any shop within premises where the principal business carried on on those premises is the operation of a cinema, bowling alley or skating rink and the shop is operated by the person who operates the cinema, bowling alley or skating rink
(d) any premises in an office tower that forms part of a retail shopping centre
(e) premises of a class or description prescribed by the regulations as exempt from this Act.
Is the lease covered by the Act?
The Act does not apply to the following leases of retail shops (see section 6):
(a) leases for a term of less than 6 months without any right for the lessee to extend the lease,
(b) leases for a term of 25 years or more (with the term of a lease taken to include any term for which the lease may be extended or renewed at the option of the lessee),
(c) leases entered into before 1 August 1994
Generally the Act does not apply to a lease of a retail shop for a term of less than 6 months without any right for the lessee to extend the lease. There are some exceptions for successive, extended or renewed leases for more than one year - see section 6.
Where the premises are leased as a shop and a residence are the premises leased predominantly for a retail shop?
If the premises are let to the tenant by the landlord for residential purposes but where the predominant use of the premises is let for the purpose of a trade profession of business then the Residential Tenancies Act will not apply. The residential use should be a relatively minor and subsidiary use of the premises.
Where the lease is party for a retail shop and partly for other premises, the Retail Leases Act 1994 applies to the lease only to the extent that it is a lease of a retail shop.
Retail Leases Act 1994
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