Retail Leases Act 1994

National Competition Policy Review – Final Report

February 2004

The Retail Leases Act 1994 has been reviewed as part of the NSW Government’s commitment under National Competition Policy to assess legislation that potentially restricts competition.

The National Competition Principles Agreement provides that legislation should not restrict competition unless it can be demonstrated that the benefits to the community as a whole outweigh the costs, and that the objectives of the legislation can only be achieved by restricting competition.

A Review Committee chaired by the NSW Department of State and Regional Development and comprising representatives from The Cabinet Office, NSW Treasury, and the Office of Fair Trading, was established to conduct the review. An extensive consultative process was conducted, including release of an Issues Paper, to seek industry and community views on whether the net public benefits of the Act justified its retention, and possible options for improving the regulatory efficiency and equity of the existing legislative scheme.

The Review found that the Retail Leases Act 1994 does not have the effect of restricting competition and recommended retention of the legislation on net public benefit grounds.

The NSW Government has endorsed the findings of the Review which includes two amendments to improve the fairness and efficiency of the Act.