Comply with Retail Leases Act 2003 (VIC)
Vic retail leases (under $1M annual rent) attract statutory protections including disclosure + outgoings rules.
Who must comply
Landlords (and their agents) and tenants of Victorian retail premises. Excluded by ministerial determination are, among others, retail-service premises above the first three storeys of a building, leases of 15 years or more imposing substantial works or financial obligations, Melbourne Market Authority market land, certain community, charitable and farming leases, and tenants listed on an overseas stock exchange (and their subsidiaries).
What triggers it
Negotiating, entering into, renewing or assigning a lease of retail premises in Victoria that is not excluded from the Act.
When due
Information brochure and proposed lease at the start of negotiations; disclosure statement no later than 14 days before the lease is entered into (otherwise the lease starts 14 days after it is given); on an option renewal, a Schedule 3 disclosure statement at least 21 days before the term ends, or within 14 days of agreeing a renewal; outgoings estimate before the lease and at least one month before each accounting period; audited outgoings statement within three months after each accounting period.
Evidence required
Copy of the VSBC brochure and proposed lease given at negotiation; the disclosure statement in the prescribed Retail Leases Regulations 2023 form, with proof of delivery date; annual outgoings estimates; audited outgoings statements (or proof-of-payment statements where only GST, utilities, rates and insurance are recovered); audited advertising and promotion statements for shopping centres; any five-year waiver certificate.
Max penalty
A landlord who fails to give the information brochure may be fined if the VSBC investigates and prosecutes. Without a disclosure statement the tenant is not liable to pay rent once it gives written notice (within 7 days before or 90 days after entering the lease), and a misleading, false or incomplete statement can lead to termination of the lease. Outgoings not estimated or not detailed in the lease are not payable
Summary
The Retail Leases Act 2003 (Vic) and Retail Leases Regulations 2023 govern leases of retail premises, which the Act defines as premises used wholly or predominantly for the sale or hire of retail goods or the provision of retail services, and which courts have held can include supplying goods or services to other businesses as end users. A landlord entering negotiations must give the prospective tenant the proposed lease and the Victorian Small Business Commission (VSBC) Retail Leases Information Brochure for Tenants (the updated edition is mandatory from 1 July 2026), then a disclosure statement at least 14 days before the lease is entered into. Tenants are not liable for outgoings that are not detailed in the lease or not covered by an annual estimate. The Act also covers five-year waiver certificates, key money, security deposits, essential safety measures and rent reviews, with VSBC dispute resolution before VCAT.
Enforced by
Source legislation
Topics
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Frequently asked questions
- Who must comply with Retail Leases Act 2003 (VIC)?
- Landlords (and their agents) and tenants of Victorian retail premises. Excluded by ministerial determination are, among others, retail-service premises above the first three storeys of a building, leases of 15 years or more imposing substantial works or financial obligations, Melbourne Market Authority market land, certain community, charitable and farming leases, and tenants listed on an overseas stock exchange (and their subsidiaries).
- What triggers Retail Leases Act 2003 (VIC)?
- Negotiating, entering into, renewing or assigning a lease of retail premises in Victoria that is not excluded from the Act.
- When is Retail Leases Act 2003 (VIC) due?
- Information brochure and proposed lease at the start of negotiations; disclosure statement no later than 14 days before the lease is entered into (otherwise the lease starts 14 days after it is given); on an option renewal, a Schedule 3 disclosure statement at least 21 days before the term ends, or within 14 days of agreeing a renewal; outgoings estimate before the lease and at least one month before each accounting period; audited outgoings statement within three months after each accounting period.
- What is the maximum penalty for Retail Leases Act 2003 (VIC)?
- A landlord who fails to give the information brochure may be fined if the VSBC investigates and prosecutes. Without a disclosure statement the tenant is not liable to pay rent once it gives written notice (within 7 days before or 90 days after entering the lease), and a misleading, false or incomplete statement can lead to termination of the lease. Outgoings not estimated or not detailed in the lease are not payable
- What evidence is required for Retail Leases Act 2003 (VIC)?
- Copy of the VSBC brochure and proposed lease given at negotiation; the disclosure statement in the prescribed Retail Leases Regulations 2023 form, with proof of delivery date; annual outgoings estimates; audited outgoings statements (or proof-of-payment statements where only GST, utilities, rates and insurance are recovered); audited advertising and promotion statements for shopping centres; any five-year waiver certificate.
Source: https://www.vsbc.vic.gov.au/your-rights-and-responsibilities/retail-tenants-and-landlords/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.