Retail Leases Acts by state: NSW, Vic, Qld, WA, SA disclosure and key money rules

Retail Leases Acts in each state

The Retail Leases Acts governing retail leases vary significantly between Australian states. New South Wales is governed by the Retail Leases Act 1994 (NSW), with the NSW Small Business Commissioner responsible for dispute resolution. Victoria operates under the Retail Leases Act 2003 (Vic), and disputes are initially addressed through the Victorian Small Business Commission. Queensland utilises the Retail Shop Leases Act 1994 (Qld), with administration handled by the Office of Fair Trading and the Queensland Civil and Administrative Tribunal (QCAT). Unfair contract terms 2026 penalties may apply.

Western Australia’s retail leases are governed by the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA). South Australia uses the Retail and Commercial Leases Act 1995 (SA), with enforcement overseen by the Small Business Commissioner SA. These Acts outline specific requirements regarding disclosure timing, minimum lease terms, and processes for resolving disputes. ACL misleading and deceptive conduct (s18, s29) considerations are relevant.

Importantly, the Retail Leases Acts do not operate uniformly. Each state’s legislation establishes its own distinct framework, meaning the rules and processes for retail leases differ considerably depending on the state in which the lease is located.

Disclosure statements and timing

Each state has specific requirements regarding disclosure statements for retail leases. In New South Wales and Queensland, the lessor must provide a disclosure statement to the lessee at least 7 days prior to entering into the lease agreement. Victoria mandates a longer timeframe, requiring landlords to provide a disclosure statement at least 14 days before a new lease is signed.

Victoria also has specific requirements for lease renewals. If a tenant exercises an option to renew a lease, the landlord is obligated to provide an updated disclosure statement at least 21 days before the current lease term ends. This ensures the tenant has current information before committing to a further term. ACL consumer guarantees apply to consumer leases.

Failure to comply with disclosure requirements can have significant consequences for lessors. A tenant may be entitled to terminate the lease within a prescribed period, usually around 6 months, and seek compensation for any losses incurred as a result of the non-compliant disclosure.

Minimum lease term and key money

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Victoria is the only state to retain a statutory minimum lease term. Section 21 of the Retail Leases Act 2003 requires a minimum term of 5 years (including options). A tenant may be able to waive this requirement if they obtain a prescribed certificate following independent legal advice. Franchising Code of Conduct 2024 update

New South Wales, Queensland, and Western Australia do not have a statutory minimum lease term. NSW repealed its minimum term under the Retail Leases Act 1994 (NSW), and Queensland never reinstated a minimum term under the Retail Shop Leases Act 1994.

Key money is prohibited in all retail leases jurisdictions. Sections 14 (NSW), 23 (Vic), and 36 (Qld) of the relevant legislation prevent landlords or agents from requesting or accepting key money in exchange for granting, renewing, or extending a lease. Payments for goodwill from an outgoing tenant to an incoming tenant are not considered key money.

What counts as a 'retail shop' and exclusions

The definition of a ‘retail shop’ varies slightly between states. In New South Wales, the Act applies to retail shops listed in Schedule 1, generally those under 1,000 m² used wholly or predominantly for a retail business. Victoria’s legislation covers premises used wholly or predominantly for the sale or hire of goods by retail, or for the retail provision of services. Queensland’s Act applies to retail shops within retail shopping centres (containing five or more retail shops) and standalone retail businesses, also with a 1,000 m² area cap.

Several exclusions apply across all jurisdictions. Generally, premises exceeding 1,000 m² are excluded, as are leases held by public listed companies. Short-term leases, typically those under six months, are also excluded, although extensions to these leases may affect this status. Unfair contract terms 2026 penalties can arise if these exclusions are applied inappropriately.

Leases that do not fall under the scope of the retail leases Acts are governed by general contract law and any applicable common-law principles. This means standard contractual provisions and legal precedents will apply instead of the specific protections and requirements outlined in the retail leases legislation.