Leases

The State Taxation Acts and Other Acts Amendment Act 2023 received Royal Assent on 12 December 2023. The new law introduces significant property tax changes in Victoria with effect from 1 January 2024.

This LPLC Alert provides a summary of the key changes introduced by the Retail Leases Amendment Act 2020 and 3 steps to take now to avoid risk when acting in retail lease transactions.

Practitioners for both landlords and tenants need to understand that the Personal Property Securities Act 2009 (Cth) (PPS Act) may apply to the lease of premises because:

• Sometimes a landlord of premises also leases goods to the tenant.
• A landlord may obtain a cash security deposit from the tenant.
• A landlord may provide a lease incentive to pay for the tenant’s fitout.
• When a tenant vacates premises, goods may be abandoned.

LPLC recommends that practitioners consider the following matters when acting in relation to a lease of premises.

Practitioners for both vendors and purchasers need to understand that the Personal Property Securities Act 2009 (Cth) (PPS Act) may apply to a contract of sale of land because:

• Sometimes a vendor selling land, also sells goods to the purchaser.
• Sometimes a vendor selling land also transfers a licence to the purchaser.
• The sale of land may be subject to a lease where the vendor may have received a cash security deposit from the tenant.
• The sale of land may be subject to a lease where the vendor may have also leased goods to the tenant.

The LPLC recommends that practitioners consider the matters in this Alert when acting in relation to the sale of land.