Lease agreement overview
A lease sets out the right to occupy premises, the permitted use and each party’s obligations. In Australia, residential tenancies are governed by residential tenancy laws, while business premises are covered by either general commercial lease principles or specific Retail Leases legislation when the use is retail. State and territory rules affect disclosure, registration, security, outgoings and dispute options.
Because a lease can bind you for years, the most cost‑effective time to negotiate is before signing. Heads of agreement and disclosure documents shape later terms. Early review usually improves rent structures, incentives, make‑good and assignment rights.
Important: This page provides general lease information for Australia and is not legal advice. Rules and processes vary by state and territory and by the facts of each matter.
Lease types and key issues
Common lease types
- Retail leases (shops and consumer-facing services under Retail Leases legislation)
- Commercial office, industrial and warehouse leases
- Short-term licences to occupy or kiosks
- Assignments, renewals and options
- Subleases and shared spaces (coworking/managed)
Decisions to compare before you sign
- Term length and options to renew
- Rent structure (gross vs net) and what outgoings apply
- Rent review method (CPI, fixed %, market) and timing
- Fit‑out rights, landlord works and incentives (contribution/rent‑free)
- Use rights, exclusivity, competing tenants and trading hours
- Make‑good scope and condition reports
- Assignment/sublease rules and release of guarantors
- Security: bond, bank guarantee or personal guarantees
- Insurance, maintenance and repair obligations
- Disclosure statements (retail) and cooling‑off where applicable
- Registration requirements and plan/area measurement
Key clauses explained
These terms drive most commercial outcomes in an Australian lease agreement:
- Permitted use and exclusivity: define what you can do and whether the landlord can install competing tenants nearby.
- Outgoings: itemised list of recoverable costs. In retail leases, some charges are restricted or must be disclosed.
- Rent review: CPI, fixed or market reviews. Check “ratchet” clauses and market review mechanisms.
- Fit‑out and works: who pays, approvals required, base-building rules and reinstatement at end.
- Make‑good: whether you must return to base building, repaint, recarpet, or remove services; try to cap exposure.
- Option to renew: notice periods, rent for the new term and when market rent is assessed.
- Assignment & subleasing: consent standards, information required and whether original guarantors are released.
- Default and termination: grace periods, interest, lockout rights and access to security.
- Registration: when to lodge, who pays registry fees and who prepares the registrable form.
Lease costs and typical timelines
Indicative Australian pricing only. Ask for a fixed scope and written quote for your matter.
- Lease review (tenant or landlord, straightforward small commercial/retail): typically $650–$1,500 + GST
- Negotiation and mark‑up package: from $1,200 + GST depending on rounds and complexity
- Drafting a new lease (landlord): commonly $1,200–$3,500 + GST depending on premises and schedules
- Retail disclosure statement (landlord): usually $350–$900 + GST
- Deeds (assignment, variation, renewal): from $550 + GST each
- Registration: land registry fees vary by state/territory; budget for form preparation plus lodgement fees
- Searches/plan/ASIC checks: allow modest disbursements
Timeframes: basic reviews in 2–5 business days; negotiated matters 1–3 weeks; registration depends on the registry’s queue. Urgent same‑day options may be available.
Note: Duty on leases has been removed or limited in many states; check current state/territory revenue rules for any payable duty on certain lease transactions.
Documents and information for a stronger position
Collect these so advice and negotiation can move faster:
- Heads of agreement or offer to lease
- Draft lease, annexures and plan/area measurement
- Retail disclosure statement (if applicable) and outgoings schedule
- Fit‑out specs, services requirements and landlord works list
- Any incentive deed or side letter
- Prior lease, assignment or renewal documents (if continuing occupation)
- Evidence of proposed use (menu/services, equipment, trading hours)
- Security details (bond/bank guarantee wording, guarantor information)
- Insurances and any compliance certificates required
How lease matters often progress
| Stage | What usually happens |
|---|---|
| Scoping & objectives | Clarify use, budget, preferred term, options and timelines. Identify retail vs commercial rules. |
| Document review | Check heads, disclosure, draft lease and plans. Flag risks in outgoings, make‑good, security and reviews. |
| Negotiation | Propose amendments, compare rent/outgoings options, seek incentives, refine assignment and make‑good. |
| Execution | Finalise signatures, guarantor deeds and security. Exchange and arrange commencement obligations. |
| Registration & post‑signing | Prepare registrable form (if required), lodge, diarise key dates, complete fit‑out approvals and insurances. |
Lease Agreement Australia FAQ
What is the difference between a commercial lease and a retail lease?
Retail leases cover premises selling goods or services to the public and attract Retail Leases legislation in your state or territory. That usually means mandatory disclosure and limits on certain charges. Commercial (non‑retail) leases rely more on the negotiated terms and general law.
Do I need to register my lease?
If the term (including options) is greater than a set period (often 3 years), registration is recommended or required in several jurisdictions to protect your interest. Check your local land registry rules and time limits.
How are rent reviews typically handled?
Common methods are CPI, fixed percentage and market review. Look for any “ratchet” (no decrease) wording and how market rent is determined, including valuers and dispute steps.
Who pays for make‑good?
Tenants usually bear make‑good at lease end, but scope and costs are negotiable. Seek a clear condition report and consider a contribution cap or a fair wear‑and‑tear standard.
Can a landlord recover all outgoings?
Not always. Retail leases often limit or require disclosure of outgoings. In any lease, insist on an itemised schedule and negotiate exclusions or caps where you can.
How much does lease advice cost and how long does it take?
Straightforward reviews typically range from $650–$1,500 + GST with 2–5 business day turnaround. Complex negotiation, deeds and registration add time and cost. Ask for a fixed quote.
Need help with a lease agreement?
Use the form below to get quick guidance on your lease, costs and options, or to connect with Australian lease lawyers near you.