WA Commercial Law - Withholding Payment of Outgoing Variables?

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Evan

Member
11 April 2017
1
0
1
If I haven't received my audited outgoing statement from 2015/16, which is due 3 months after end of financial year... then am I entitled to stop paying my variable outgoings under commercial law until it is resolved?

I have a standard retail shop agreement.

Thank you
 

shallice

Active Member
23 April 2017
9
1
34
Hi Evan

It sounds like you have moved from Queensland but there are some similarities in WA.

The relevant legislation is the Commercial Tenancy (Retail Shops) Agreements Act (WA) 1985, section 12.

The landlord is required to give to the tenant an operating expenses statement that details all expenditure by the landlord in each accounting period of the landlord during the term of the lease on account of operating expenses to which the tenant is required to contribute.

If a landlord does not comply with the requirement referred to in subsection, the tenant is not obliged to pay, and the landlord is not entitled to recover, operating expenses from the date of that noncompliance until the landlord complies with that requirement.

An operating expenses statement —

a. is to be given to the tenant within 3 months after the end of the accounting period to which it relates; and


b. if the relevant retail shop is in a retail shopping centre, must include a statement of the current total lettable area of the retail shopping centre and details of any material change in that total lettable area during the period to which the statement relates; and


c. is to be prepared in accordance with relevant principles and disclosure requirements of the applicable accounting standards made by the Australian Accounting Standards Board, as in force from time to time; and


d. may be a composite statement (that is, it may relate to more than one tenant) if each tenant to which it relates is able to ascertain from the statement the information required


e. is to be accompanied by a report on the statement prepared by a registered company auditor within the meaning of the Corporations Act 2001 of the Commonwealth which includes a statement by the auditor as to whether or not the operating expenses statement correctly states expenditure by the landlord during the accounting period concerned in respect of operating expenses to which the tenant is required to contribute, and as to whether or not the total amount of estimated operating expenses for that period (as shown in the estimate of operating expenses given to the tenant) exceeded the total actual expenditure by the landlord in respect of those operating expenses during that period.


However, it is important that a satisfactory relationship is maintained with your lessor.

I would recommend getting into contact with them and explaining your concern about not receiving the audited annual statements and your right to withhold payments of apportionable outgoings.

Then I would follow that up with a letter detailing your conversation and any responses they might have offered.


Try this website for resolving disputes. You need to maintain a relationship with your lessor, which I understand can be extremely taxing at times.

Commercial Tenancy Act | Small Business

Also, if you have other questions, try this website

https://www.smallbusiness.wa.gov.au...to-on-or-after-1-January-2013-4th-edition.PDF


Hope this helps.

Shallice