Retail lease laws in Australia by state

Retail lease laws in Australia are made by each state and territory, so the rules depend on where the premises are. Each state has its own Act, with its own disclosure period, minimum term rules, mediation body and tribunal or court. The table below sets them out side by side for the five largest states.

Retail lease laws by state

Each rule has conditions and exceptions that don’t fit in a table. Where a state sets a 5-year term, it counts any options.

Tasmania, the ACT and the Northern Territory

The territories and Tasmania have their own rules:

• Tasmania. Retail tenancies are covered by a code of practice made under the state’s fair trading law. The Retail Leases Act 2022 has passed but was not in force when this guide was reviewed.
• ACT. The Leases (Commercial and Retail) Act 2001 covers retail leases and some commercial leases, such as small commercial premises, but not all of them. Disputes go to the Magistrates Court.
• Northern Territory. The Business Tenancies (Fair Dealings) Act 2003 covers retail shop leases.

What every state’s law has in common

The details differ, but the Acts deal with the same issues:

• Which leases are covered. Each Act defines a retail shop or retail premises, usually by how the premises are used. Exclusions vary by state, such as large premises and, in some states, listed companies or high rents.
• Disclosure. The landlord must give the tenant a disclosure statement before the lease is entered into. It sets out the rent, outgoings, term and other key terms.
• Rent reviews. Ratchet clauses are void in most states, and the Acts set rules for market reviews.
• Outgoings. The landlord must give estimates and annual statements, and in some states can’t pass on land tax or its management fees.
• Assignment. The Acts set out the process for the landlord’s consent and how long it has to respond.
• Disputes. Most disputes must go to mediation first, through the state’s small business commissioner or equivalent, before a tribunal or court.

The Act usually overrides any lease term that conflicts with it.

Not sure how your state’s Act affects your retail lease? We act for landlords and tenants under every state’s retail leases law, online. Get retail lease advice.

The main differences

Disclosure periods

Victoria has the longest disclosure period, at 14 days. NSW, Queensland and WA use 7 days. SA requires the statement before the lease is entered into, without a fixed number of days. If the landlord doesn’t give the disclosure statement on time, or it is wrong, the tenant may have rights against the landlord, including in some states the right to end the lease. See the 14-day disclosure period in Victoria.

Minimum term

In Victoria and SA, a retail lease must be for at least 5 years, including options, unless an exception applies. In Victoria, the tenant can give up the 5 years only with a waiver certificate from the Victorian Small Business Commission. In SA, the lease can exclude it with a certified exclusionary clause, certified by a solicitor not acting for the landlord or by the Small Business Commissioner.

NSW has had no minimum term since 1 July 2017, and Queensland has none. In WA, a lease of more than 6 months but less than 5 years gives the tenant an option to renew for up to 5 years in total. Only a State Administrative Tribunal order, on the tenant’s application, removes that option.

Forms the tenant signs

Some states require the tenant to sign or obtain forms before the lease is entered into:

• Queensland. The tenant must give the landlord a Form 11 financial advice report, signed by a qualified accountant, and a Form 12 legal advice report, signed by a lawyer. They can’t be waived, although some tenants are excluded, such as a tenant of 5 or more retail shops. See do I need a Form 12?
• Victoria. For a term of less than 5 years, the tenant asks the Victorian Small Business Commission for a waiver certificate and gives the landlord a copy.
• SA. To exclude the 5-year term, the lease needs a certified exclusionary clause, certified by a solicitor not acting for the landlord or by the Small Business Commissioner.

Registration and bonds

Some states add rules on registering retail leases and on holding bonds. In NSW, for example, the landlord must lodge a retail lease of more than 3 years (including options) for registration within 3 months after the tenant returns it signed, and must lodge a cash bond with NSW Fair Trading. Check the rules for your state before the lease starts.

Which law applies to your lease

The law of the state or territory where the premises are applies, wherever the landlord or tenant is based. First check whether your lease is retail at all, as many commercial leases are not covered.

If you have premises in more than one state, each lease follows its own state’s law. A national tenant with shops in NSW, Victoria and Queensland deals with three different Acts, each with its own disclosure rules and forms.