The Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) (CT Act) is required to be reviewed every five years. This consultation forms part of the current review process

Consultation: CLOSED 31 August 2022

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 will be used by Consumer Protection to advise Government about the effectiveness of the CT Act and whether there is a need for reform.

Key considerations of the review

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 considers 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 being addressed 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 Advice Line on 1300 30 40 54 or by email.

More information

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