18Restrictions on adjustment of base rent

#### 18 Restrictions on adjustment of base rent 18 Restrictions on adjustment of base rent > > (1) In this section— > > > > base rent means rent, or that component of rent, which comprises a specified amount of money (whether or not there is provision for the amount to change). > > > > Note. > > > > Turnover rent (rent determined by reference to the lessee’s turnover) is not base rent because turnover rent is not a specified amount of money (it varies according to the lessee’s turnover). > > > (2) A retail shop lease must not provide for a change to base rent less than 12 months after the lease is entered into and must not provide for a change to that rent less than 12 months after any previous change to that rent. This subsection does not apply to a change to base rent by a specified amount or specified percentage. > > > > Note. > > > > For example, subsection (2) prevents a lease providing for an increase to current market rent more than once in 12 months. It does not prevent a lease providing for the rent to increase by $100 every 6 months. Nor does it prevent a lease providing for the rent to be increased to current market rent after 12 months and then to be increased by 2% every 6 months after that. > > > (3) A provision of a retail shop lease is void to the extent that it— > > > > > (a) reserves or has the effect of reserving to one party a discretion as to which of 2 or more methods of calculating a change to base rent is to apply on a particular occasion of a change to that rent, or > > > > > (b) provides for a method of calculating a change to the base rent but reserves or has the effect of reserving to one party a discretion as to whether or not the base rent is to be changed in accordance with that method on a particular occasion, or > > > > > (c) provides for base rent to change on a particular occasion in accordance with whichever of 2 or more methods of calculating the change would result in the higher or highest rent. > > > (4) If a retail shop lease provides for a change to base rent in a way that has the potential to cause that rent to decrease (such as a provision for the rent to change to current market rent), a provision of the lease is void to the extent that it— > > > > > (a) prevents or enables the lessor or any other person to prevent base rent decreasing pursuant to the change, or > > > > > (b) limits or specifies, or allows the limitation or specification of, the amount by which the base rent is to decrease. > > **s 18:** Am 1998 No 169, Sch 1 \[18\].