House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-09-15 Daily Xml

Contents

Personal Explanation

SMALL BUSINESS COMMISSIONER BILL

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Mineral Resources Development, Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services) (10:32): I seek leave to make a personal explanation.

Leave granted.

The Hon. A. KOUTSANTONIS: In my closing remarks in the second reading debate for the Small Commissioner Bill 2011, I made a remark that it is unlawful for landlords to pass on land tax increases to their tenants. I wish to make it clear that it is unlawful, under section 30(1) of the Retail and Commercial Leases Act 1995, that a retail shop lease requires the lessee to pay land tax or to reimburse the lessor for the payment of land tax.

I wish to point out however that, under section 30(2), a lessor's liability for land tax in respect of the premises may be taken into account in the assessment of rent. In addition, there are several circumstances relating to the rent under section 4(2) of the Retail and Commercial Leases Act 1995 where the act will not apply.

In short, if section 4(2) does not apply, a landlord cannot just hand a land tax bill to a tenant and ask them to pay it directly. I simply make this clarification to clear up any ambiguity that might have been construed from my words.