Do sole traders need to comply with Retail Leases Act 1994 (NSW)?

Only if a further fact applies. Looking in the 3 industries it can reach and every size band, the engine's answer for a sole trader is: only if a further fact applies.

Do businesses with 1–5 employees need to comply with Retail Leases Act 1994 (NSW)?

Only if a further fact applies (1–5 employees, turnover $100K–$1M).

When is "Comply with 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.

Who must comply with Retail Leases Act 1994 (NSW)?

The applicability test for Comply with Retail Leases Act 1994 (NSW) (NSW Fair Trading), computed across 35 industries, 9 business structures and 6 size bands.

Short answer: Only if

Applies only if you lease retail premises. Whether it applies turns on a fact that no industry, structure or size settles on its own.

What the obligation is

NSW retail leases — disclosure, 5-year minimum term, outgoings transparency.

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.

The applicability test

Applies only if you lease retail premises. Whether it applies turns on a fact that no industry, structure or size settles on its own.

How the regulator frames it: 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.

Jurisdiction: New South Wales law only. A business with no operations in NSW is outside it, whatever the rest of the test says.

Which industries are in or out

Outcome across the 35 industries Rules Mate maps (3 of 35: only if a further fact applies; 32 of 35: no).

Industry	Answer
Cafés & restaurants	Only if a further fact applies
Hotels, pubs & licensed venues	Only if a further fact applies
Retail trade	Only if a further fact applies
No	32 other industries

Business structure and size

Structure does not change the answer in the 3 industries it can reach: for every structure the answer is "only if a further fact applies".

Size does not change the answer in the 3 industries it can reach: at every size band the answer is "only if a further fact applies".

Worked examples

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
Pty Ltd company in cafés & restaurants with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you lease retail premises.

When you need to check further

The engine shows this obligation as "check whether this applies" when a business has industry: Retail trade or industry: Cafés & restaurants / Hotels, pubs & licensed venues. It then applies only if you lease retail premises. That fact is not something Rules Mate can infer from industry, structure or size.

What you must do, and when

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.
Frequency: When a triggering event occurs
Evidence to keep: 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.
Status: Current
Priority: High

Penalty for not complying

Maximum 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.

Audit or assurance level

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

Obligations with the same applicability test

If this obligation applies to you, so does this one: the engine uses the same rule for each.

Comply with Retail Leases Act 2003 (VIC)

Where it sits in the corpus

Rules Mate tracks 5 published obligations tagged "tenancy", 0 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated high priority, and is triggered by events.

Regulator, legislation and tools

Regulated by NSW Fair Trading.

NSW Fair Trading: Consumer protection, licensing (building, conveyancing, motor dealers), and tenancy regulator in NSW.

NSW Fair Trading

Free tools that help with this obligation:

Compliance calendar builder

Run the compliance journeyAnswer a short questionnaire about your business and get the obligations that apply to you, with the reason each one applies.

Questions

Who must comply with Retail Leases Act 1994 (NSW)?: Applies only if you lease retail premises. Whether it applies turns on a fact that no industry, structure or size settles on its own.
Do sole traders need to comply with Retail Leases Act 1994 (NSW)?: Only if a further fact applies. Looking in the 3 industries it can reach and every size band, the engine's answer for a sole trader is: only if a further fact applies.
Do businesses with 1–5 employees need to comply with Retail Leases Act 1994 (NSW)?: Only if a further fact applies (1–5 employees, turnover $100K–$1M).
When is "Comply with 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.

Sources

NSW Fair Trading: official source

Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.