Key Recommendations to Address Concerns of Small Businesses

The long-awaited review of the Commercial Tenancy (Retail Shops) Agreements Act 1985 has finally been tabled in Parliament. This significant development follows extensive consultations with key stakeholders, including the Real Estate Institute of Western Australia (REIWA).

REIWA’s 2022 submission to the review highlighted several concerns raised by its members, including:

• The need for greater flexibility in lease agreements to accommodate changing market conditions.
• The importance of market-driven solutions to address disputes and tenant concerns.
• Targeted protections for genuinely vulnerable businesses while avoiding excessive burdens on landlords.

The institute advocated for a minimal legislative approach, emphasizing the importance of preserving the balance between the rights of landlords and tenants.

The recently tabled report outlines key recommendations for future legislation. The government is set to implement these changes through new legislation. REIWA is currently reviewing the report and its recommendations and will provide members with detailed insights in the coming weeks.

While legislative changes are unlikely to occur before 2025, the drafting process will involve further consultation with stakeholders, including REIWA. This provides an opportunity for the institute to continue advocating for the interests of its members and ensure the proposed changes are fair and effective.

REIWA remains committed to working with the government and other stakeholders to create a balanced and sustainable commercial tenancy framework that supports the needs of both landlords and tenants. The institute believes that the proposed changes will help to strengthen the commercial tenancy landscape in Western Australia and provide greater certainty for businesses operating in the retail sector.