The Retail Shop Leases Act in Queensland has been amended to make a ratchet rent provision in a retail shop lease void for leases entered into after 4 April 2010.

A ratchet rent provision is defined as any provision of a retail shop lease to the extent that it—

a) prevents, or enables the lessor or another person to prevent, the rent decreasing under a rent review; or

b) limits or specifies, or allows the limitation or specification of, the amount by which the rent may decrease under a rent review; or

c) prevents, or allows the avoidance of, the rent review by the lessor or another person for a purpose mentioned in paragraph (a) or (b).

New section 134 of the Retail Shop Leases Act 1994 makes section 36A apply to a retail shop lease entered into after commencement, being the day of assent (4 April 2011) to the amending Bill.

Joe Kafrouni, Legal Practitioner Director, Kafrouni Lawyers


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