Office: (08) 6146 3333
What is GST?
Goods and Services Tax is a Federal Government tax, currently set at 10%.
Do I have to pay GST?
The Landlord will determine if GST is payable on the rent and outgoings recoverable.
Most Commercial Landlords are registered for GST and is such cases, GST will be payable on top of the rent and outgoings.
Landlords who generate more than $75,000 in rental income from commercial properties are required to be registered for GST.
What are variable outgoings?
Variable Outgoings is a term, commonly used in commercial leases, referring to the Landlords cost of running and maintaining a property, that can be recovered from the Lessee.
What is an option?
An “option” is typically an opportunity to extend an existing lease at the Lessee’s discretion. A Lessee negotiating a new lease may choose to commit to a 3-year lease but wants the opportunity to stay for a further 3 years if business is going well. Such a lease may therefore be written up as a 3-year lease plus a 3-year option.
In short, if the Lessee full fills their obligations in the lease, they commit for 3 years but are guaranteed 6 years if they want.
What is a retail lease?
A Retail lease is determined by the definition in the Retail Shops ACT. The ACT is designed to protect Retail business operators with several additional protections above the Property Law ACT. The main differences are that a retail tenant is entitled to a minimum of 5 years lease, can not be charged an agent’s management fees and benefit from a retail disclosure statement spelling out exactly what the Lessee will charged for and what they are entitled to.
What is CPI?
The Consumer Price Index is a commonly used method of reviewing the rent in a commercial lease. It is designed to be a fair method of review as it is based on the increase in the cost of living.
You can view our current listings of Commercial Property for Sale here and Commercial Property for Lease here
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