New South Wales Consolidated Acts

RETAIL LEASES ACT 1994 - SECT 25A

25A Limits on sinking funds

(1) This section applies to the lessor under a retail shop lease that provides for the establishment of a sinking fund to fund provision for major items of repair or maintenance.

(2) The lessor must not establish more than one sinking fund at any one time in respect of retail shop leases for retail shops situated in the same building or retail shopping centre.

(3) The lessor must not require or accept contributions to the sinking fund in respect of any retail shop situated in a retail shopping centre that total an amount that exceeds 5% of the total of the lessor’s estimated outgoings for the year concerned in respect of the retail shopping centre.

(4) The lessor must not require or accept contributions by a lessee to the sinking fund if the amount outstanding to the credit of the sinking fund is more than $250,000.

Maximum penalty: 50 penalty units.