Annual rent cannot generally be less than minimum rent
6.4 Annual rent cannot generally be less than minimum rent
The annual rent for a holding is not to be less than the minimum rent as at the date the rent is due and payable.
If the annual rent for a holding on a due date is less than the minimum rent as at that due date, the annual rent is increased to the minimum rent.
Despite subsection (1), the holder of a holding is not required to pay the minimum rent if—
the holder has been granted a waiver, reduction, remission, postponement or rebate of rent resulting in no rent or a lesser amount of rent being payable, or
the provisions of the holding provide that the holder is not required to pay the minimum rent.
The minimum rent of a holding at each due date is to be calculated using the following formula—
where—
M is the minimum rent.
B is the minimum base rent.
C is the Consumer Price Index number for the last quarter for which a number was published before the due date for the rent.
D is the Consumer Price Index number for the last quarter for which a number was published before the rent base adjustment date.
In this section—
minimum base rent means $472 or any greater amount that may be prescribed by the regulations.
rent base adjustment date means 1 July first occurring after the commencement of this section or, if the minimum rent base is prescribed by the regulations, the date prescribed by the regulations as the rent base adjustment date.
This provision refers to the regulations (prescribed by the regulations
). Made under this Act:
This Act’s bill:Explanatory memorandumSecond reading speech
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