The Treasurer today asked the Productivity Commission to conduct a six-month inquiry into the market for retail tenancy leases in Australia. Whilst retail tenancy leases fall under state legislation, the inquiry is a response to a range of concerns about aspects of retail tenancy raised with the Australian Government.
“Small business tenants are telling me that they are worried about the difficulties they face when presented with commercial leases over which they feel they have little or no control,” Minister Bailey said. “Other concerns include the range of disparate retail tenancy laws between states and territories which has been raised by the industry,” the Treasurer said.
The Productivity Commission will conduct an independent analysis of the market for retail tenancies. The Commission’s extensive consultation process will provide an opportunity for all stakeholders, including small businesses, landlords, tenants, investors and consumers, to raise any concerns about the current regulatory settings for retail tenancy market. The Commission has been asked to identify measures to improve the operation of the market in its recommendations to Government.
The Commission has been asked to report on:
- the structure and functioning of the retail tenancy market;
- any competitive, regulatory and access constraints on the market;
- the extent of information asymmetry between landlords and retail tenants;
- scope for reform of retail tenancy regulation;
- the appropriateness and transparency of provisions in leases to determine rights when the lease ends and factors that are taken into account in determining rents; and
- any measures to improve overall transparency and competitiveness of the market for retail tenancy leases.
The Productivity Commission will soon seek expressions of interest from parties wishing to participate in the inquiry.
All interested parties are invited to take part and make a submission.
To register an interest in the inquiry or find out more, details are available from the Productivity Commission at www.pc.gov.au or phone 02 6240 3239.