The statutory review of the of the Commercial Tenancy (Retail Shops) Agreements Act 1985 report was officially tabled in Parliament on the 15 October 2024, following extensive consultation with stakeholders.

The report contains a number of recommendations for reform, with the Government set to begin drafting amendments to the legislation in 2025.

Key considerations of the review

The Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) (CT Act) is required to be reviewed every five years. Consultation forms a key part of this review.

Commercial landlords, tenants or any other interested stakeholders were asked to share their views and opinions on the operation of the commercial tenancy laws.

A consultation paper and short survey were prepared to collect feedback on key issues to determine whether the CT Act is operating effectively to protect small retail businesses and promote fair lease agreements while being flexible enough to respond to a changing retail market.

Feedback to the consultation paper was used by Consumer Protection to advise Government about the effectiveness of the CT Act and whether there is a need for reform.

Background

The retail industry in Western Australia is characterised by a mix of small businesses and large businesses participating as landlords and tenants. This mix can sometimes lead to an imbalance in bargaining power and inequitable leasing arrangements.

One of the key objectives of the CT Act is to address this imbalance by providing for greater transparency and fairness in lease agreements for small retail businesses. To find out whether the CT Act is achieving this objective while still being flexible enough to accommodate changes in the marketplace, the review considered whether the CT Act:

• addresses imbalances in bargaining power
• maintains viability for landlords and tenants
• accommodates the diversity of the sector and an ever changing retail marketplace
• promotes fair contract terms.

The issues and recommendations outlined in the report include:

• leases covered by the CT Act
• minimum five year lease terms
• disclosure requirements
• lease costs
• first right of refusal
• early termination due to severe financial hardship
• trading hours
• dispute resolution
• unconscionable conduct
• impact of COVID-19 and other issues.

Enquiries

Enquiries can be made by calling Consumer Protection on 1300 30 40 54 or by email.

More information

• Commercial tenancy consultation paper
• Commercial tenancy
• Commercial tenancy information for landlords and tenants