Many of the provisions in the various retail acts in different
States and Territories are similar. One difference between NSW and
Victoria is that in NSW the Retail Leases Act does not apply when
premises are greater than 1,000 square metres, where as in Victoria
the test is whether the occupancy costs are more than $1,000,000
per annum. Another difference is that in NSW the landlord may not
recovery Land Tax from a tenant under a lease subject to the Retail
Leases Act. Both States prohibit ratchet clauses on rent
reviews.
This case looks at the situation in Victoria if a lease starts
out as being subject to the Retail Leases Act and then 'jumps
out' – ie: it ceases to be retail premises. Can the
landlord start recovering Land Tax?
