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ARTICLE · 07 DECEMBER 2016

Protection for small business against unfair lease terms

Landlords and tenants should consider the impact of the new laws about unfair terms in retail and commercial leases.

AustraliaReal Estate and Construction

In brief - Landlords and tenants should consider impact of new laws on retail and commercial leases

The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Act 2015 (Cth) (Act) will allow a court to determine that unfair terms within a standard form "small business contract" can be declared as unenforceable. The new laws will take effect from 12 November 2016 and extend to a wide range of contracts, including for the leasing of land.

These new laws give small businesses the same protections afforded to consumers under both the Australian Securities and Investment Commission Act 2001 (Cth) (ASIC Act) and the Competition and Consumer Act 2010, Australian Consumer Law (ACL).

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