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Retail lease regulations updated for 2023

19 April 2023

Retail tenants and landlords should be aware that Victoria’s Retail Leases Regulations 2013 expired on 16 April 2023 and the Victorian Government has since updated them.

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The 2023 regulations don’t have any substantive changes to the 2013 regulations but were updated to reflect the disclosure statements that were made available on 1 December 2022.

The disclosure statements to the Retail Leases Act 2003 stipulate that when starting or renewing a retail lease, landlords must give tenants a disclosure statement that outlines essential lease information (such as the term of the lease, occupancy costs, fit-out requirements) so the tenant can understand the key elements of the lease.

The Retail Leases Regulations 2023 complement the Act. Anyone entering a retail lease needs to be aware of and understand these regulations.

The main objectives of the regulation are to:

  • provide the forms of disclosure statements (which a landlord must give their tenant) and how they are to be used
  • set out a maximum occupancy cost (including rent, outgoings and other costs detailed in a lease) to exclude certain retail premises from being covered by the Act
  • set out a formula for charging the tenant outgoings based on the size of the premises compared with other premises in the same structure.

The Victorian Small Business Commission provides a retail lease fact sheet for landlords and information brochure for tenants, along with commercial despite resolution assistance.

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