What it does
The Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) (the Act) establishes a detailed statutory overlay governing the formation, content, operation and termination of retail shop leases in Western Australia. At its core, the legislation implies or imposes a range of protective terms into every qualifying retail shop lease while rendering certain unfair or one-sided provisions void. Section 3(1) defines a "retail shop lease" broadly as any lease, licence or agreement (written or oral) providing for the occupation of a retail shop, subject to exclusions for premises exceeding 1,000 m² (unless prescribed), leases held by listed corporations or their subsidiaries, and other prescribed exemptions. A "retail shop" itself is defined in s 3(1) as premises in a retail shopping centre used wholly or predominantly for business, or non-centre premises used for a retail business (sale of goods by retail or a prescribed "specified business").
The Act operates by deeming certain terms to be included in leases and voiding others. For example, s 6 mandates a prescribed-form disclosure statement at least seven days before entry into the lease; failure triggers tenant rights to terminate within six months (subject to the landlord's honest and reasonable conduct defence in s 6(3)) or claim compensation via the State Administrative Tribunal (SAT). Section 6A, inserted in 1998, requires incorporation of a prescribed tenant guide, with analogous termination and compensation rights. Rent based on turnover is tightly controlled: s 7 voids such provisions unless the tenant has elected in writing and the lease specifies the exact formula; turnover is exhaustively defined in s 7(4) to exclude numerous items such as discounts, trade-ins, refunds and taxes. Section 8 voids any requirement for turnover figures except where rent is turnover-based.