We pay the legislators, regulators and judiciary good money to legislate, regulate, and make decisions that make good sense, that bring about efficacy and certainty to the law and how the industry conducts itself. The general intent in State Tenancy Laws, was that ratchet clauses (which contribute to asset “bubbles”) were outlawed from around 1994. There was a Queensland case called Connor Hunter, which went to appeal after the initial Trial Judge upheld the poorly written tenancy law, had always intended that ratchet clauses be outlawed. Not as the Appeal Court saw it. As of early April 2011 this went back to the legislators and again ratchet clauses are not permitted in Queensland. This is common sense but it took the Queensland Government some 18 months to change the law back to what was intended?
Don E Gilbert
With 30 years of hands-on experience in multiple facets of the property industry, the last 20 focused on retail dynamics, including retail shop leases, retail property valuation and current market rent, Don is an experienced retail leasing consultant.