On 1 July 2017, several key changes were made to the Retail
Leases Act in New South Wales that affect both landlords and
tenants around the state. These changes have been in draft form for
a substantial amount of time, and so it was no surprise when the
legislation came into effect. A summary of the key changes are
outlined below.
Minimum 5 year term
Under the prior version of the Act, all retail leases had to go
for a period of at least 5 years, unless a section 16 certificate
was signed by the tenant's solicitor (waiving the 5 year
requirement). The aim of the minimum term was to ensure that all
tenants had enough time to establish their business and give them
security of a long term lease. On the flip side, if a tenant's
business did not go as planned, they were then liable for 5 years
worth of rental (even though they may have only traded for 2
years). As this section made tenants liable for a long period, it
has been repealed, meaning that a retail lease will
