Changes to Retail Shop Leases Act - what does it mean?

Posted by Denis Stephenson

The Retail Shop Leases Amendment Act 2016 (Qld) (Amendment Act) has been passed by the Queensland parliament.

It hasn’t commenced as yet and will commence on a date to be proclaimed. Commencement is expected to occur before Christmas 2016.

Both lessors and lessees need to understand the changes.

Lessors need to review and amend their leases and procedures so that they comply with changes as soon as the Amendment Act commences. Leasing agents/managing agents also need to be updated and understand the changes.

Obligations surrounding disclosure requirements are one of the key changes made by the Amendment Act.  These include new disclosure requirements and consequences of failure to make disclosure. For example, where a lessee exercises an option to renew in a lease:

• The lessor will now have to give a current lessor disclosure statement to the existing lessee within seven days of receipt of the lessee's notice of exercise of the option.

• The lessee may within fourteen days of receiving the current lessor disclosure statement, whether or not their renewed lease period has commenced, give the lessor a written notice stating that the notice exercising the option is withdrawn. The lessee does not need to give any reasons.

• If the lessor does not give a current lessor disclosure statement or the current lessor disclosure statement is defective the lessee may within six months after the commencement of the option period terminate the retail shop lease.

Further changes include where upon an assignment both the lessee and the lessee's guarantors will now be released from liability where the conditions set out in the Retail Shop Leases Act have been satisfied. Previously the lessee's guarantors weren’t released.

Requirements with respect to recovery of outgoings by lessors have been "tightened". In addition a lessee will have the right to withhold payment of outgoings until the estimate or audited statement is given by the lessor.

The above mentioned changes are only a few of the changes that will occur on the commencement of the Amendment Act. The Amendment Act will have the effect of further regulating retail leasing.

If you have any questions in relation to the changes please contact Denis Stephenson of our office. 

Roadshow proves to be priceless for family communication

Posted by: Kylie Wilson

I enjoyed getting out with the crew from Resource Consulting Services and Entello Group for another succession and continuity roadshow last week, this time for Mitchell, Miles and Goondiwindi.

Fantastic inroads were made with many of the participants in relation to the importance of early planning and communication.  

Most of the participants labelled the day "priceless" and some of the comments and feedback we received from the roadshow sessions included:

"Very informative and interesting"

"Enlightening" 

"Invaluable to have people who have succeeded in using the process"

"Great introduction to facilities to help with process"

As with our previous roadshow in central Queensland in February of this year, it is was very eye opening for both generations participating in a workshop session identifying the aims of the "older" generation and the "younger" generation.  As with every one of the sessions that have been conducted to date, the top aims for both generations in relation to desired outcomes of succession planning very closely reflect each other, with financial security and family harmony often at the top of the list for both generations. 

Achieving a successful succession of a rural family business, with the older generation able to retire comfortably and the younger generation able to take on a viable business, is crucial to achieving the goals both generations continue to indicate are a priority.  To achieve this requires careful, and often long term, planning and honest communication about needs and expectations.  Practical examples of both the good and the ugly of rural succession planning from the Lawrie family and Claudia Power and John Moore of RCS was again invaluable in helping to get this message across.  Entello group also discussed some very insightful options to enable off farm investments to assist in funding parents' retirements.  

The plan is to do this again in North Queensland later in the year and I'm looking forward to catching up with clients up north again.