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Update: Retail Leases Regulation 2022

A new regulation under the Retail Leases Act 1994 (Act) came into effect on 01 January 2023 and the regulation expands the definition of ‘retail shop’. The Retail Leases Regulation 2022 (Regulation) will apply to leases entered into after 01 January 2023 irrespective of whether the premises are in a shopping centre, on a retail shopping strip or stand-alone premises.

Key Changes

The Regulation adds the following business leases to be covered by the provision of the Act:

  • Gymnasiums and fitness centres, including yoga, barre, pilates and dance studios, and

  • Small bars with a maximum patron capacity of 120 (irrespective of the proportion of liquor and food sales).

Previously these businesses were only covered by the Act if the business was part of a shopping centre or retail strip but not included as stand-alone premises.

If your business falls within the new definition of ‘retail shop’ the Act will provide protection and coverage. The Act will override any inconsistencies outlined in the leases for the new businesses.

Transitional Period

For leases of premises used for a fitness business or small bar entered into before 01 January 2023 and the premises become a ‘retail shop’ as a result of the Regulation, the lessees will have access to the cost effect dispute resolution (mediation) services provided under the Act regardless of their premise location.

Henry William Lawyers can assist with any related enquiries. Feel free to contact our people:

Ron Zucker 0410 590 111

Eollyn Cortes 0478 727 395

Julia Zou 0426 670 202


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