contracts

Lease Agreement in Australia: Template, Clauses and Local Law (2026)

Adira EditorialLegal AI desk5 min read

What is a lease agreement in Australia, and which law governs it? A lease agreement in Australia is a contract by which a landlord lets property to a tenant for a term in return for rent. The most important thing to know first is that there is no single national lease law. Residential and commercial leases are governed mainly at the state and territory level, and the rules differ by state. So the right starting point is: what type of property, and which state or territory? For residential tenancies, each state and territory has its own Act, such as the Residential Tenancies Act 2010 in New South Wales, the Residential Tenancies Act 1997 in Victoria, and the Residential Tenancies and Rooming Accommodation Act 2008 in Queensland. These usually require a prescribed or standard-form agreement, a bond lodged with a state authority, and set notice periods you cannot contract out of. For retail shop leases, most states have a Retail Leases Act that adds landlord disclosure and minimum terms. Other commercial leases run largely on general contract and property law. This article is general guidance, not legal advice. Tenancy and tax rules differ by state and change, so confirm the current position with the relevant state authority or a qualified professional before you rely on it. Last verified October 2026. ## Australia lease agreement template (commercial / general) Copy the block below and fill the bracketed fields. For a residential tenancy, use your state's prescribed form instead of a free template. ```

LEASE AGREEMENT This Lease (the "Lease") is made on [DATE] BETWEEN: [LANDLORD NAME], of [address] (the "Landlord" / "Lessor") AND [TENANT NAME], of [address] (the "Tenant" / "Lessee") 1. PREMISES The Landlord leases to the Tenant the premises at [ADDRESS] (the "Premises") for use as [permitted use] only. 2. TERM The term is [N] years from [START DATE], with [N] option(s) to renew of [N] years each, exercised by written notice [N] months before expiry. 3. RENT AND REVIEWS Rent is $[AMOUNT] per [month/year] plus GST, payable in advance. Rent is reviewed [annually] by [CPI / fixed % / market review] as set out in Schedule 1. 4. OUTGOINGS The Tenant pays [its share of outgoings: rates, insurance, body corporate levies] as set out in Schedule 2. [For a retail lease, outgoings must be disclosed in the disclosure statement.] 5. SECURITY The Tenant provides [a bank guarantee / security deposit] of $[AMOUNT]. 6. USE, REPAIR AND ASSIGNMENT The Tenant keeps the Premises in good repair (fair wear and tear excepted), uses them only for the permitted use, and does not assign or sublet without the Landlord's consent, not to be unreasonably withheld. 7. INSURANCE The Tenant holds public liability insurance of at least $[AMOUNT] and insures its own property and plate glass. 8. DEFAULT AND TERMINATION The Landlord may re-enter for unremedied default after lawful notice. The Tenant may end the Lease [on the terms in Schedule 1]. 9. GST Amounts are expressed exclusive of GST; the party making a taxable supply may recover GST from the other on a valid tax invoice. 10. GOVERNING LAW This Lease is governed by the laws of [STATE/TERRITORY]. Signed by the Landlord: __________ Signed by the Tenant: __________ Name / date Name / date

- **Rent and reviews (clause 3).** Pick one review method (CPI, a fixed percentage, or a market review) and apply it consistently. For a retail lease, some review mechanisms are restricted by state law.
- **Outgoings (clause 4).** List exactly which outgoings the tenant pays. For a retail lease, the landlord generally must give a disclosure statement before the lease, and cannot recover outgoings it failed to disclose.
- **GST (clause 9).** Commercial and retail rent is generally subject to GST; residential rent is input-taxed and does not carry GST. A registered tenant can usually claim back the GST on commercial rent.
- **Governing law (clause 10).** Name the state or territory, because the governing Act and the disclosure and review rules all follow it. ## Common mistakes to avoid - Using a free commercial template for a residential tenancy, when your state requires a prescribed form, a lodged bond and set notice periods you cannot contract out of.
- Skipping the retail lease disclosure statement, which can cost the landlord the right to recover outgoings or let the tenant end the lease.
- Charging GST on residential rent, which is input-taxed, or forgetting GST on commercial rent.
- Vague or conflicting rent-review clauses, a common source of commercial lease disputes.
- Assuming stamp duty applies to the lease. Lease duty has been abolished in most states, but confirm the current position for your state. <!-- [VERIFY: whether lease/transfer duty applies to leases in the specific state as of October 2026] --> ## A note on jurisdiction and current law - **State and territory law.** Residential tenancies follow each state's Residential Tenancies Act, with a prescribed form, a lodged bond and mandatory notice periods. Retail shop leases follow each state's Retail Leases Act, with landlord disclosure and minimum terms. Other commercial leases run on general contract and property law.
- **GST.** Commercial and retail rent generally carries GST; residential rent is input-taxed. A landlord passing the $75,000 turnover threshold must register for GST.
- **Stamp duty.** Lease duty has been abolished in most states; transfer duty can still apply to some long leases or premiums. <!-- [VERIFY: current lease-duty position by state as of October 2026] --> ## Where a contract workspace helps A template gets you a sound commercial lease, and your state's prescribed form covers a residential tenancy. The ongoing work is keeping rent-review, outgoings and GST terms consistent across a portfolio in different states, checking a draft and the retail disclosure for weak or missing items before you sign, and tracking option, review and expiry dates across many leases. Drafting an Australian lease, reviewing its state-specific clauses, tracking the key dates and governing a portfolio of them can sit in one AI workspace tuned to how you lease property. [Adira](https://adiralaw.com) is built to work this way. This template alone is enough to put a fair lease in place; a single workspace just joins the drafting, review and tracking into one job.

Frequently asked questions

Is there one lease law across Australia?
No. Leases are governed mainly at the state and territory level, and the rules differ. Residential tenancies follow each state's Residential Tenancies Act, such as the Residential Tenancies Act 2010 in New South Wales or the Residential Tenancies Act 1997 in Victoria, usually with a prescribed form and a lodged bond. Retail shop leases follow each state's Retail Leases Act. Other commercial leases run largely on general contract and property law. Always name the state in the lease.
Can I use a free lease template for a residential tenancy in Australia?
Generally no. For a residential tenancy, most states require a prescribed or standard-form agreement, a bond lodged with a state authority, and notice periods you cannot contract out of. A free commercial template will miss these. Use your state's prescribed residential form. A general template like the one here is better suited to a commercial lease where the parties have more freedom to negotiate terms.
Is GST charged on rent in Australia?
It depends on the property type. Commercial and retail rent is generally subject to GST, and a registered tenant can usually claim it back. Residential rent is input-taxed, so it does not carry GST. A landlord whose turnover passes the $75,000 threshold must register for GST. Confirm your position with the Australian Taxation Office or a tax adviser. Last verified October 2026.
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