LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 66 Outgoings—reports

LEASES (COMMERCIAL AND RETAIL) ACT 2001 - SECT 66

    (1)     A lease that provides for payment by the tenant for outgoings must include—

        (a)     a provision requiring the lessor to give the tenant a written report (a report ) within 3 months after the end of the accounting period the report relates to; and

        (b)     provisions to the effect of subsections (2) to (4).

    (2)     A report must—

        (a)     be prepared by an auditor on a cash accounting basis unless the disclosure statement or lease provides for another accounting method to be used; and

Example—accounting method

accrual accounting

        (b)     contain details of the lessor's spending on outgoings that the tenant contributed to in the accounting period; and

        (c)     include a statement by the auditor about whether or not—

              (i)     the outgoings the tenant contributed to were recoverable outgoings; and

              (ii)     the outgoings the tenant contributed to (that is, the estimated spending by the lessor on outgoings for the lease) was more than the amount spent by the lessor on outgoings in the accounting period.

    (3)     A report may relate to more than 1 tenant provided that each tenant it relates to can work out from the report whether or not the amounts paid by the tenant in relation to outgoings were recoverable outgoings.

    (4)     A report need not comply with subsection (2) (a) and (c) if—

        (a)     the report only relates to 1 or more of the following outgoings:

              (i)     water, sewerage and drainage rates and charges;

              (ii)     other rates and statutory charges;

              (iii)     insurance;

              (iv)     a contribution paid to a corporation in accordance with a determination under the Unit Titles (Management) Act 2011

, section 78 (General fund—contributions), to the extent that the contribution is used, or is to be used, for an outgoing mentioned in subparagraphs (i) to (iii); and

        (b)     the report is accompanied by—

              (i)     copies of receipts for all expenditure by the lessor mentioned in paragraph (a) (i) to (iii); and

              (ii)     if the report relates to an outgoing mentioned in paragraph (a) (iv)—a copy of the minutes of the owners corporation that state the extent to which the contributions to the general fund are to be, or have been, used for an outgoing mentioned in paragraph (a) (i) to (iii), or equivalent evidence of the use of the contributions.