New South Wales Consolidated Acts

RETAIL LEASES ACT 1994 - SECT 21A

21A Rent variations for short-term leases

(1) This section applies to a lease where the term of the lease is extended by the operation of section 16 (2) and the lease does not contain provisions for the variation of the rent during the additional period. The lease is taken to contain provisions of that kind if the provisions are expressed generally so as to be capable in their terms of applying throughout the whole term of the lease.

Note: This section would not apply to a lease for 3 years extended to 5 years by the operation of section 16 (2) if the lease contained provisions for “annual” increases of rent without expressly limiting the increases to the 3-year term.

(2) The lease is taken to provide that the lessor may increase the rent as from the date of commencement of the additional period and thereafter annually from that date.

(3) The amount of rent periodically payable resulting from an increase under subsection (2) must not exceed the base amount, adjusted in line with movements in the Consumer Price Index (All Groups Index) for Sydney and rounded up to the nearest dollar. The base amount is the corresponding amount of rent payable immediately before the date of commencement of the additional period.