49Limitation on recovery of management fees

49 Limitation on recovery of management fees

(1) A provision of a retail premises lease is void to the extent that it makes the tenant liable to pay an amount for management fees unless—

S. 49(1)(a) substituted by No. 82/2005 s. 23(1).

(a) the management fees relate to the management of the building in which the retail premises are located or, if the retail premises are located in a retail shopping centre, that centre; and

(b) the lease, or a disclosure statement given to the tenant in accordance with Part 4, specifies—

(i) the amount of the management fees for any accounting period of the landlord during the term of the lease; and

(ii) a rate, or a method for calculating a rate, for working out the amount for which the tenant is liable for that period.

(2) If, subject to subsection (1), a tenant was liable under a retail premises lease to pay an amount for management fees for the landlord's previous accounting period, the amount that the tenant is liable under that lease to pay for the landlord's current accounting period must not exceed the greater of the following amounts—

(a) the amount for management fees that the tenant was liable to pay for the previous accounting period;

S. 49(2)(b) amended by No. 44/2014 s. 33(Sch. item 23(a)).

(b) the amount calculated using this formula (as adjusted, if appropriate, by subsection (3))—

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where—

A is the amount for management fees that the tenant was liable to pay for the previous accounting period; and

B is the All Groups Consumer Price Index number (for Melbourne) published by the Australian Bureau of Statistics for the reference period in which the current accounting period started; and

C is the All Groups Consumer Price Index number (for Melbourne) published by the Australian Bureau of Statistics for the reference period in which the previous accounting period started.

(3) The amount calculated using the formula in subsection (2)(b) is adjusted—

(a) if the tenant was liable for management fees for only part of the previous accounting period, by—

(i) multiplying the amount by the total number of days in the previous accounting period; and

(ii) dividing that result by the number of days in the part of the previous accounting period for which the tenant was liable for management fees; and

(b) if the tenant is liable for management fees for only part of the current accounting period, by—

(i) multiplying the amount by the number of days in the part of the current accounting period for which the tenant is liable for management fees; and