Comply with Retail Leases Act 1994 (NSW)
NSW retail leases — disclosure, 5-year minimum term, outgoings transparency.
Who must comply
Lessors (landlords and their agents) and lessees of NSW retail premises under 1,000 square metres used for a retail business listed in Schedule 1 of the Act, or any premises in a shopping centre, where the lease term is between six months and 25 years.
What triggers it
Entering into, renewing, extending or assigning a retail lease of covered premises in New South Wales.
When due
Lessor's Disclosure Statement at least 7 days before the lease starts or is renewed; Lessee's Disclosure Statement within 7 days after receiving it; cash bond lodged within 20 business days of receipt; outgoings estimate before each accounting period and audited outgoings statement after it; Assignor's Disclosure Statement when seeking consent to assign.
Evidence required
Signed Parts A and B of the Retail Lease Disclosure Statement; executed lease and registration where the term exceeds three years; NSW Fair Trading bond lodgement record; outgoings estimates, audited outgoings statements and sinking fund statements; marketing plans and audited advertising statements for shopping centre tenancies; written agreement on the lessor's maximum fit-out costs.
Max penalty
Consequences confirmed on the NSW Small Business Commission's Retail Tenancy Guide: outgoings not disclosed might not be recoverable from the lessee, key money is prohibited, and disputes can end in Tribunal or court orders. Offence penalty amounts under the Act were not verified for this entry; check the Act on legislation.nsw.gov.au
Who must comply with this? The applicability test by industry, business structure and size.
Summary
The Retail Leases Act 1994 (NSW) sets base requirements that no retail lease can override. A lessor must give the lessee a signed Lessor's Disclosure Statement (Part A) at least seven days before a new or renewed lease begins, and the lessee returns its own statement (Part B) within seven days. The lessor pays the cost of preparing the lease, must not take key money, must lodge any cash bond with NSW Fair Trading within 20 business days, and must give outgoings estimates in advance and an audited outgoings statement after each accounting period; outgoings not disclosed might not have to be paid. Leases over three years should be registered with NSW Land Registry Services. Disputes go first to the NSW Small Business Commission's mediation service, then to the Tribunal or a court.
Enforced by
Source legislation
Topics
Related
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- NSWComply with NSW Design and Building Practitioners Act 2020Designers + builders of Class 2-9 buildings in NSW must register + lodge declarations.
Frequently asked questions
- Who must comply with Retail Leases Act 1994 (NSW)?
- Lessors (landlords and their agents) and lessees of NSW retail premises under 1,000 square metres used for a retail business listed in Schedule 1 of the Act, or any premises in a shopping centre, where the lease term is between six months and 25 years.
- What triggers Retail Leases Act 1994 (NSW)?
- Entering into, renewing, extending or assigning a retail lease of covered premises in New South Wales.
- When is Retail Leases Act 1994 (NSW) due?
- Lessor's Disclosure Statement at least 7 days before the lease starts or is renewed; Lessee's Disclosure Statement within 7 days after receiving it; cash bond lodged within 20 business days of receipt; outgoings estimate before each accounting period and audited outgoings statement after it; Assignor's Disclosure Statement when seeking consent to assign.
- What is the maximum penalty for Retail Leases Act 1994 (NSW)?
- Consequences confirmed on the NSW Small Business Commission's Retail Tenancy Guide: outgoings not disclosed might not be recoverable from the lessee, key money is prohibited, and disputes can end in Tribunal or court orders. Offence penalty amounts under the Act were not verified for this entry; check the Act on legislation.nsw.gov.au
- What evidence is required for Retail Leases Act 1994 (NSW)?
- Signed Parts A and B of the Retail Lease Disclosure Statement; executed lease and registration where the term exceeds three years; NSW Fair Trading bond lodgement record; outgoings estimates, audited outgoings statements and sinking fund statements; marketing plans and audited advertising statements for shopping centre tenancies; written agreement on the lessor's maximum fit-out costs.
Source: https://www.smallbusiness.nsw.gov.au/about-retail-leases/retail-tenancy-guide. Rules Mate is not a law firm. Always verify against the live regulator source before acting.