In short
Australian commercial rents are usually quoted per square metre per year, plus outgoings (the tenant's share of rates, insurance and building costs) and GST, which applies to commercial rent. Retail shop leases are covered by each state's retail leases law: the landlord must give you a disclosure statement before you sign, at least 7 days before in New South Wales and Queensland.
1. Work out the full cost
- Rent per m² per year, plus outgoings and GST (10%) on both. Our commercial rent calculator converts per m² and per year into a monthly figure.
- The bond or bank guarantee, the fit-out, and any marketing levy in a shopping centre.
2. Retail lease laws and the disclosure statement
Each state and territory has a retail leases act. They require the landlord to give a disclosure statement setting out the rent, outgoings and other terms before the lease is signed (at least 7 days before in NSW and Queensland). Minimum lease terms differ by state: New South Wales removed its 5-year minimum for leases from 1 July 2017, and other states have their own rules and ways to waive them, so check your state.
3. Check the permitted use
Confirm with the local council that planning allows your use, and what permits you need (food, signage, outdoor seating).
4. Agree the terms
- The term and options to renew, and how the rent is reviewed (fixed percentage, CPI or market review).
- Outgoings: which costs are passed on and how they are estimated.
- Make-good obligations at the end of the lease, and who pays for the fit-out.
Checklist
- Rent, outgoings and GST worked out per year and per month
- Disclosure statement received in time and read
- Your state's retail leases law and minimum term checked
- Council permits for your use confirmed
- Rent review, options and make-good terms agreed
- Lease reviewed by a lawyer
Questions people ask
Is GST charged on commercial rent in Australia?
Yes. Leasing commercial premises is a taxable supply, so a GST-registered landlord adds 10% GST to the rent and outgoings.
What is a disclosure statement in a retail lease?
A document the landlord must give the tenant before a retail shop lease is signed, setting out the rent, outgoings and other key terms. In NSW and Queensland it must be given at least 7 days before.
Is there a minimum lease term for shops in Australia?
It depends on the state. New South Wales removed its 5-year minimum for leases entered into from 1 July 2017; check the retail leases law of your state or territory.
Sources
- GST on commercial property: Australian Taxation Office
- NSW retail leases changes from 1 July 2017: Hall & Wilcox
- NSW Retail Leases Act 1994: NSW legislation
Next steps
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