6Definitions—ch 2

6 Definitions—ch 2 In this chapter: cancelled— (a) means rescinded, annulled or otherwise terminated without completion; and (b) includes abandoned. commercial lease means a lease granted for— (a) commercial purposes only; or (b) more than 1 purpose including commercial purposes. commercial lease with premium—see section 6A. commercial purposes does not include residential purposes or the purposes of primary production. Examples—commercial purposes • industrial use • business use • retail use declaration of trust means any declaration (other than by a will or testamentary instrument) that any identified property vested or to be vested in the person making the declaration is or is to be held in trust for the person or people, or the purpose or purposes, mentioned in the declaration although the beneficial owner of the property, or the person entitled to appoint the property, may not have joined in or assented to the declaration.

market rent, in relation to a commercial lease, means the rent (worked out as at the date the lease was granted) that would be charged by the lessor if the land the subject of the lease was leased by a willing lessor to a willing lessee— (a) dealing with each other at arm’s length; and (b) each of whom had acted knowledgeably, sensibly and without compulsion. premium, in relation to a commercial lease, means any consideration (being the amount of a monetary consideration or the value of a non-monetary consideration) that is paid or agreed to be paid in relation to the lease, other than rent reserved. primary production means— (a) production resulting directly from— (i) cultivation of land; or (ii) keeping animals for their sale, their bodily produce or natural increase; or (iii) fishing operations; or (iv) forest operations; and (b) the manufacture of dairy produce by the person who produced the raw material used in that manufacture. rent reserved, in relation to a commercial lease, means— (a) the rent paid or payable during the term of the lease that is market rent; and

(b) any reasonable amount paid or payable for the right to use the land under the lease. Examples—payments for right to use land under commercial lease • rates • maintenance and repairs • services and utilities • legal costs payable by lessee on behalf of lessor in relation to grant of lease • insurance premiums • car park contributions • turnover rent • fit-out costs • security • land rent • gardening and landscaping • lifts • administration