Last updated: August 2026

With the significant increase in the number of businesses in Australia, understanding retail

leases is essential for protecting your business.

A retail lease is a legally binding agreement between a landlord and a tenant that allows the

tenant to occupy a commercial space for their retail business. The first critical step is to

review the legislation in the state where your business is located. Each state and territory in

Australia has its own Retail Leases Act or equivalent legislation. All share the overarching

goal of protecting tenants, but each includes its own exemptions and regulations.

Let's look at how these laws differ and what that means for your business.

Retail Leases Acts by State and Territory

Key Differences Across State Legislation

1. The Definition of "Retail Lease"

Each state defines "retail lease" a little differently, including what qualifies as a "retail shop" or

"premises." This matters for tenants who need to determine whether their business qualifies

for the protections under a state's legislation.

a) NSW: Under s3 of the Retail Leases Act 1994 (NSW), a "retail shop lease" is an agreement

under which a landlord grants a tenant the right to occupy premises for a retail business,

in exchange for something of value (usually rent).

b) VIC: Section 3 of the Retail Leases Act 2003 (VIC) defines "lease" more broadly, covering a

"lease, sub-lease, or agreement for a lease or sub-lease," giving it wider scope than the

NSW definition.

c) QLD: Section 5A, Division 2 of the Retail Shop Leases Act 1994 (QLD) defines "retail shop

lease" as a lease agreement for a retail shop, typically premises where goods or services

are sold directly to the public. It also sets out what is not considered a retail shop lease

(s5A(3)).

2. Minimum Lease Term

Retail leases traditionally required a minimum term of five years (including option periods),

though this varies by state:

a) NSW and QLD: The five-year minimum term no longer applies to leases entered into after

1 July 2017.

b) WA: The minimum five-year term is more firmly entrenched; tenants generally have a

statutory right to extend to five years, and a shorter term needs approval from the State

Administrative Tribunal.

c) VIC, SA, ACT, and TAS: These states still apply a minimum term requirement, though

tenants who signed leases before 1 July 2017 may, in some circumstances, opt out.

Because rules in this area vary and change over time, always confirm the current position for

your specific lease with a commercial lease lawyer before relying on it.

3. Disclosure Requirements

Before a lease is entered into, the lessor must generally provide a disclosure statement

outlining key lease terms (and in some states, the lessee must do the same). Requirements

differ by state, including timeframes and whether the obligation can be waived:

a) NSW: Under the Retail Leases Act 1994 (NSW), s11 requires the lessor to provide their

disclosure statement at least 7 days before the lease is entered into; s11A requires the

lessee's disclosure statement no later than 7 days after receiving the lessor's statement.

b) VIC: Under the Retail Leases Act 2003 (VIC), s17 gives the landlord at least 14 days before

entering into the lease to provide their disclosure statement.

c) QLD: Under the Retail Shop Leases Act 1994 (QLD), s21B requires the lessor to give their

disclosure statement at least 7 days before the prospective lessee enters into the lease.

Notably, s21B(4) allows the lessee to waive this obligation in writing.

4. Dispute Resolution

Disputes typically start with negotiation between the parties and/or their respective

solicitors. If that fails, mediation is required, usually via a neutral third party. Each state and

territory has its own body responsible for mediating retail lease disputes, and if mediation

fails, its own tribunal for escalation:

a) NSW: Mediation is handled by the NSW Small Business Commissioner. Unresolved

disputes can go to the NSW Civil and Administrative Tribunal (NCAT) or court.

b) VIC: Mediation is handled by the Victorian Small Business Commission (VSBC), with

escalation to the Victorian Civil and Administrative Tribunal (VCAT).

c) QLD: Mediation is provided by the Queensland Small Business Commissioner, with

escalation to the Queensland Civil and Administrative Tribunal (QCAT).

d) SA: Mediation is facilitated by the SA Small Business Commissioner, with escalation to the

South Australian Civil and Administrative Tribunal (SACAT).

e) NT: Mediation is managed by Northern Territory Consumer Affairs (Business Tenancies),

with escalation to the local court.

Frequently Asked Questions

Is a retail lease the same as a commercial lease?

Not necessarily. Each state defines "retail lease" a little differently, including what qualifies as

a "retail shop" or "premises." Whether a business qualifies for the protections in a state's retail

leasing legislation depends on that definition.

Which Retail Leases Act applies to my business?

The Act of the state or territory where the premises are located. Each state and territory in

Australia has its own Retail Leases Act or equivalent legislation.

Do I have to be offered a five-year minimum lease term?

It depends on the state. Retail leases traditionally required a minimum term of five years

including option periods, but in NSW and QLD that minimum no longer applies to leases

entered into after 1 July 2017. WA maintains a statutory right for tenants to extend to five

years.

When does a landlord have to give me a disclosure statement?

Timeframes differ by state. In NSW the lessor must provide it at least 7 days before the lease

is entered into (s11); in VIC at least 14 days (s17); in QLD at least 7 days, though s21B(4) allows

the lessee to waive this in writing.

Who resolves a retail lease dispute?

Disputes typically start with negotiation, then mediation through the relevant state body:

the Small Business Commissioner in NSW, QLD and SA, the Victorian Small Business

Commission in VIC, and NT Consumer Affairs in the Northern Territory. If mediation fails, each

state has its own tribunal for escalation.

Conclusion

Although each state and territory has its own retail lease legislation, all share the goal of

protecting tenants. Key aspects, including the definition of a "retail lease," minimum lease

terms, disclosure requirements, and dispute resolution processes, vary significantly between

jurisdictions. It's crucial to understand which state's laws govern your lease and to stay

updated on legislative changes.

Here at Purpose Lawyers, we offer a complimentary 15-minute advice session. Please

contact us on 1800 018 750 or email us at info@purposelawyers.com.au to arrange your

complimentary advice session today!

Useful Links

The full text of each Act referenced in this article is available from the official government

legislation sites:

1. Retail Leases Act 1994 (NSW) on NSW Legislation

2. Retail Leases Act 2003 (VIC) on Victorian Legislation

3. Retail Shop Leases Act 1994 (QLD) on Queensland Legislation

4. Retail and Commercial Leases Act 1995 (SA) on South Australian Legislation

5. Leases (Commercial and Retail) Act 2001 (ACT) on ACT Legislation Register

6. Business Tenancies (Fair Dealings) Act 2003 (NT) on NT Legislation

7. Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) on WA Legislation

8. Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 (TAS) on Tasmanian Legislation