Retail Leases Act 1994 (NSW): Complete Guide

The Retail Leases Act 1994 governs most retail shop leases in New South Wales. It applies to premises used wholly or predominantly for a business prescribed by regulation, wherever those premises are, and to any business carried on in a retail shopping centre.

The Retail Leases Act NSW gives tenants a disclosure statement seven days before signing, limits on rent reviews and land tax, a protected security bond, and mediation through the NSW Small Business Commission.

Coverage is not a choice the parties make. A shop of 1,000 square metres or more sits outside the Act no matter what the lease says, and since 1 January 2023 a suburban gym or a small bar sits inside it.

Does the Retail Leases Act 1994 Apply to Your Shop?

The Act applies to premises used, or proposed to be used, wholly or predominantly for a business prescribed by the regulations, whether or not those premises are in a retail shopping centre, or to premises used for any business at all if they sit in a retail shopping centre.

Those two gateways come from the definition of “retail shop” in section 3. The first gateway is about what the business does, and the second is about where it is.

A butcher on a suburban main street is caught by the first, because butcher shops are prescribed.

An accountancy practice inside a shopping mall is caught by the second, because any business in a retail shopping centre qualifies regardless of what it sells.

The question matters to a large number of operators, with the Australian Bureau of Statistics counting 156,169 actively trading retail trade businesses in Australia at 30 June 2025.

Once the premises clear one of those gateways, the lease still has to survive the exclusions before the Act applies.

Which Businesses Are Prescribed as Retail Shops in NSW?

The prescribed businesses are set out in Schedule 1 to the Retail Leases Regulation 2022, which lists retail businesses by name in a single alphabetical schedule.

The list used to sit in Schedule 1 to the Act itself, and the 2022 Regulation moved it across, so older guides that point to “Schedule 1 of the Act” are pointing at a schedule that is no longer there.

The entries are specific rather than general, running from antique shops, bakeries, barbers and beauty therapists through to greengrocers, hairdressers, hardware shops, internet cafes and travel agencies.

Some entries carve out neighbouring trades, so motor vehicle accessories shops are listed but tyre shops and battery shops are excluded from that entry.

Being on the list is what lets a stand-alone shop rely on the Act without any connection to a shopping centre.

If a business type is not on the list and the premises are not in a retail shopping centre, the tenancy is an ordinary commercial lease and none of the retail protections apply.

Which Shops and Leases Are Excluded From the Act?

A shop is excluded if its lettable area is 1,000 square metres or more, and a lease is excluded if its term is 25 years or more, counting any option period.

The table below compares what sits inside the Act against what sits outside it, on the basis that premises must satisfy one of the two gateways and clear every exclusion before the Act applies.

The size and venue exclusions come from section 5 of the Retail Leases Act 1994, which strips a shop out of the Act entirely rather than merely limiting particular protections.

The threshold is expressed as “1,000 square metres or more”, so a shop of exactly 1,000 square metres is outside the Act while one of 999 square metres is inside it, and lettable area does not include car parking spaces or detached storage areas.

The term exclusion is in section 6, which puts leases of 25 years or more outside the Act and expressly counts any period the tenant can add by exercising an option.

That last point is a drafting trap worth watching, because a 15 year term with two five year options adds up to 25 years and takes the whole lease outside the Act from day one.

Very short leases are also excluded, since a lease for a term of less than six months with no right to extend sits outside the Act.

That exclusion runs out if the tenancy keeps going, because the Act applies once the tenant has been in continuous possession of the shop for more than one year, including where that possession is made up of a series of short leases or extensions.

Are Gyms, Pilates Studios and Small Bars Covered by the Act?

Yes, gymnasiums and fitness centres, including yoga, barre, pilates and dance studios, and small bars with a maximum patron capacity of 120, have been prescribed retail shops in NSW since 1 January 2023.

The Retail Leases Regulation 2022 added those entries to the list of prescribed businesses, and the NSW Small Business Commission has explained that the intention was to cover these businesses regardless of whether they are in shopping centres, retail strips or stand-alone premises.

That location point is the practical heart of the change, because gyms and studios are often in industrial estates or on upper floors where nobody would have thought the retail rules applied.

The change was not fully retrospective.

For a lease that was already on foot before 1 January 2023, or that was granted under an option or agreement made before that date, only Part 8 Division 2 of the Act applies, which is the low cost mediation pathway rather than the full set of protections.

A gym that signed a genuinely new lease after that date gets the complete package, including disclosure, rent review limits and access to the Tribunal.

The transitional rule reaches further than the commencement date suggests, because a lease entered into after 1 January 2023 under an option granted or an agreement made before that date is still limited to Part 8 Division 2.

Operators who signed before the change and have since renewed should check which side of the line their current lease falls on, because the difference is substantial.

How Do Courts Decide What the Premises Are Used For?

Courts look at the use the parties contemplated under the lease rather than the way the business happens to trade day to day, and where the lease states the permitted use, that statement is conclusive.

The NSW Court of Appeal settled this in Moweno Pty Ltd v Stratis Promotions Pty Ltd [2003] NSWCA 376.

The premises at Rockdale were leased for ten years, with the permitted use varied to a licensed restaurant with ancillary function and reception facilities.

In practice the business was very largely wedding receptions and other functions, with walk-in diners being infrequent, and the landlord argued the premises were therefore not used predominantly as a restaurant.

Young CJ in Eq rejected that approach, holding that “when looking for the purpose of a lease, a court looks to the use reasonably contemplated by the parties when they entered into the lease”, and that where the lease states the use “that is conclusive”.

The appeal was dismissed, and the lease was a retail shop lease.

That is not quite an absolute rule.

An express permitted use will decide the question unless there is compelling evidence that the parties did not mean what they wrote, and how the shop actually trades can still matter where the permitted use is uncertain or is drawn broadly enough to cover several different businesses.

The practical effect is that the permitted use clause carries real weight, so a tenant negotiating a permitted use is also negotiating whether the Act applies.

Where that clause is clear, a landlord will usually not be able to escape the Act by pointing to how the shop happens to trade.

What Must a Landlord Give You Before You Sign a Retail Lease in NSW?

At least seven days before a retail shop lease is entered into, the landlord must give the tenant a disclosure statement in the prescribed form.

Section 11 sets this out, and the maximum penalty for failing to comply is 50 penalty units.

The disclosure statement is the document that tells a tenant what the rent is, what outgoings they will be asked to contribute to, what the permitted use is, and what the landlord has promised about the condition of the premises.

The tenant then has an obligation of their own, because the tenant must return a completed lessee’s disclosure statement no later than seven days after receiving the landlord’s statement.

The NSW Retail Tenancy Guide puts the tenant’s side of it plainly, advising tenants to obtain the disclosure statement with Part A signed by the landlord at least seven days before they begin a new lease or renew an existing one.

Seven days is only the statutory minimum, and nothing stops a tenant asking for the documents earlier in the negotiation, which is usually the better course on a lease of any size.

What Happens if the Disclosure Statement Is Missing or Wrong?

A tenant who never received a disclosure statement, or who received one that was incomplete or materially false or misleading, may terminate the lease by written notice at any time within six months after the lease was entered into.

Termination is not the only remedy, because a tenant who terminates on that basis is entitled to compensation for costs reasonably incurred in entering the lease, including money spent on the fit-out of the shop.

The right is not absolute. A tenant cannot terminate where the landlord acted honestly and reasonably, and the tenant is in substantially as good a position as if the failure had not happened.

There is a separate and often more useful consequence for outgoings, because section 12A provides that a tenant is not liable to pay any amount for outgoings unless the liability was disclosed in the landlord’s disclosure statement.

Where an estimate was given without a reasonable basis, the tenant’s liability is capped at the estimate rather than the actual figure, and a tenant who has already paid an amount they were never liable for can recover it.

That turns the disclosure statement into a financial ceiling as well as an information document.

Can a Landlord Charge You Their Legal Costs for Preparing the Lease?

No, a landlord cannot seek or accept payment of key money or lease preparation expenses in connection with granting a retail shop lease, and any lease provision requiring such a payment is void.

Section 14 covers both, and lease preparation expenses are defined to include the cost of obtaining a mortgagee’s consent to the lease.

The NSW Retail Tenancy Guide states the position directly, confirming that the landlord “must pay the full cost of preparing the lease, including any mortgagee consent fees”.

There is one carve-out that catches tenants out.

If the tenant asks for changes after the signed lessee’s disclosure statement has gone back to the landlord, the tenant can be asked to pay for those amendments, and the landlord must hand over a copy of any account for those expenses before the tenant has to pay.

Three types of change stay with the landlord even then, being changes to the rent or the term, changes that only correct the landlord’s failure to make an amendment already agreed, and changes the tenant asked for before the landlord received the lessee’s disclosure statement.

Reasonable legal costs can also be recovered in connection with an assignment, which is a different transaction from the original grant.

What Rights Does the Retail Leases Act Give NSW Tenants?

The Act limits how often base rent can change, stops rent ratchet clauses, caps the land tax a landlord can pass on, requires security bonds to be held by government rather than the landlord, and requires longer leases to be registered.

None of these rights can be drafted away, because section 7 provides that the Act “operates despite the provisions of a lease” and that a lease provision is void to the extent it is inconsistent with the Act.

That overriding effect extends to side agreements, since a provision of any agreement or arrangement between the parties is void to the extent it would be void if it sat in the lease.

A tenant who signed a lease containing a void clause is not bound by it simply because they agreed to it.

Is There a Minimum Term for a Retail Lease in NSW?

No, New South Wales has no minimum term for a retail shop lease, which sets it apart from Victoria, where retail leases must still run for at least five years.

The old five year minimum term sat in section 16 of the Act, and it was removed by the Retail Leases Amendment (Review) Act 2017, which omitted sections 15 and 16 and replaced them with new provisions dealing with execution and registration.

That reform package was assented to on 1 March 2017, and the Tribunal treats 1 July 2017 as the operative date for the changes.

The practical result is that a two year retail lease in NSW is perfectly valid and will not be stretched out to five years by operation of law.

Tenants therefore have to negotiate for security of tenure rather than assume it, which usually means bargaining for options to renew.

Leases entered into before 1 July 2017 are a different matter, because the old minimum term rules can still be relevant to those tenancies.

How Often Can the Rent Change, and Can It Go Down?

Base rent cannot change less than 12 months after the lease is entered into, or less than 12 months after any previous change, unless the change is by a specified amount or a specified percentage.

Section 18 also strikes out several drafting devices that landlords once used to make rent reviews one way traffic.

A provision is void to the extent it gives one party a discretion over which of two or more methods of calculating a change applies on a particular occasion.

The same applies to a clause that sets a method but lets one party decide whether to use it, and to a clause that picks whichever of two or more methods produces the higher rent.

Rent ratchet clauses are dealt with squarely by section 18(4), which provides that where a lease allows for a change with the potential to cause rent to decrease, such as a review to current market rent, any provision preventing that decrease or limiting the amount of the decrease is void.

In plain terms, if the lease says the rent goes to market, it has to be allowed to go down as well as up.

Turnover rent is treated separately, because rent calculated by reference to the tenant’s turnover is not base rent for these restrictions.

How Much Land Tax Can a Landlord Pass On to a Retail Tenant?

A NSW retail landlord can recover land tax, but only up to the amount that would have been assessed if the land concerned were the only land the landlord owned.

Section 26 writes that cap into every retail shop lease that passes land tax through as an outgoing.

The assessment is done on three assumptions: that the land concerned was the landlord’s only land, that it was not subject to a special trust, and that the landlord was not a company classified as non-concessional under the Land Tax Management Act 1956.

This is a real difference from Victoria, where retail landlords cannot pass on land tax at all, so anyone comparing states should not assume the rules travel.

The land concerned is the land on which the building or shopping centre stands, together with other land of the landlord used by or for the benefit of the tenants in it.

For a shop that is a strata lot, the land concerned is the lot itself. Landlords with large portfolios pay land tax at higher marginal rates, so the single holding basis can produce a materially smaller figure than the landlord’s actual assessment.

The landlord’s actual assessment is not the measure the Act uses, and a tenant cannot be charged more than the amount worked out on the single holding basis no matter what the lease says.

Who Holds Your Security Bond Under a Retail Lease?

A cash security bond under a retail shop lease is not held by the landlord, because the landlord or their agent must deposit it with the NSW Government’s Retail Bond Scheme within 20 business days of receiving it.

The NSW Small Business Commission explains that the scheme holds the money in trust and deposits the bond in a special account, with mediation available if the parties later disagree about who is entitled to it.

A landlord can still draw on the bond where the tenant breaches the lease or damages the property, but the money has to come out through the scheme’s process rather than out of the landlord’s own account.

Bank guarantees work differently and sit outside the scheme. Where a tenant has given a bank guarantee and has completed performance of its obligations under the lease, the landlord must return the guarantee within two months.

Tenants often forget to chase this up after handing back the keys, and an unreturned guarantee keeps a line of credit tied up with the tenant’s bank long after the tenancy has ended.

Does a Retail Lease Have to Be Registered in NSW?

Yes, a retail shop lease for a term of more than three years must be registered, and so must any lease the parties have agreed to register, with the landlord responsible for lodging it.

The registration obligation was introduced by the 2017 amendments, and the NSW Retail Tenancy Guide records the requirement as registration “within three months of the lease being signed by both parties”.

The three year threshold counts any period the tenant can add by exercising an option, so a two year lease with a two year option crosses the line.

The period can be extended for delays outside the landlord’s control, such as waiting on a mortgagee’s consent where the landlord has made reasonable efforts to obtain it.

Registration matters to tenants because a registered lease is recorded on the title and gives the tenant the clearest protection if the landlord sells during the term.

An unregistered lease is not automatically worthless, since an unregistered tenant may still have rights depending on possession, notice and the priority rules that apply to Torrens title land, but those arguments are far harder and more expensive to run than simply pointing to the register.

The maximum penalty for a landlord who fails to register is 50 penalty units.

What Happens at the End of a Retail Lease in NSW?

Where a lease has no option to renew, the landlord must give written notice not less than six months and not more than 12 months before expiry, either offering a renewal on specified terms or saying that no renewal will be offered.

Section 44 sets the timing and the consequences of getting it wrong. An offer made under that section cannot be revoked for one month, which gives the tenant a protected period to consider it.

If the landlord fails to give the notice, the tenant can request an extension in writing before the lease would otherwise expire, and the term is then extended until six months after the landlord finally gives proper notice.

During any such extension the tenant can walk away on one month’s written notice, so the extension is a shield for the tenant rather than a trap.

For a lease of 12 months or less, the periods shorten, from 12 and six months to six and three months.

None of this applies where the lease already contains an option to renew or where the parties have agreed on a renewal, because in those cases the lease itself governs the timing.

Can a Landlord Refuse to Let You Assign the Lease?

A landlord can only withhold consent to an assignment on the grounds listed in section 39, and is expressly not entitled to withhold consent in any other circumstances.

Those grounds are that the proposed assignee intends to change the use of the shop, that the assignee has financial resources or retailing skills inferior to the current tenant, that the tenant has not followed the statutory procedure for obtaining consent, the circumstances set out in section 80E, and, where the lease was awarded by public tender, a failure by the assignee to meet the tender criteria.

The procedure itself is prescriptive, and it protects a tenant who follows it.

The tenant must request consent in writing and give the landlord information reasonably required about the assignee’s financial resources and retailing skills, and must pass an updated disclosure statement to the assignee.

The landlord has to provide that updated disclosure statement within 14 days of being asked, and if the landlord does not, the tenant may complete one from their own knowledge.

The landlord must then deal with the request expeditiously, and is taken to have consented if the landlord has not responded in writing within the decision period of 28 days.

That deemed consent only operates where the tenant has followed the statutory process, the assignee does not propose to change the use of the shop, and the assignee’s financial resources and retailing skills are not inferior to the tenant’s.

For anyone selling a shop, that sequence is the difference between a clean settlement and a collapsed sale, because the lease is usually the most valuable asset being sold.

What if the Landlord Wants to Relocate or Redevelop?

The Act does not give a landlord any right to relocate a tenant, and section 34A only applies where the lease itself contains a provision enabling the tenant’s business to be relocated.

Where the lease does contain such a clause, the Act controls how it can be used, requiring at least three months’ written notice, details of an alternative shop in the same centre, and enough detail of a proposed refurbishment, redevelopment or extension to show a genuine proposal that will be carried out within a reasonably practicable time after the relocation.

A tenant who does not want to move can terminate instead, by giving written notice within one month of the relocation notice, with the termination taking effect three months after the relocation notice was given.

The first question for any tenant handed a relocation notice is therefore whether the lease permits relocation at all.

The NSW Court of Appeal considered what makes a proposal genuine in Skiwing Pty Ltd v Trust Company of Australia [2006] NSWCA 276.

The tenant ran a cafe in the Stockland Imperial Arcade and challenged three relocation notices issued by the landlord, which had been redeveloping the centre to attract a younger market.

The Court held that a proposed refurbishment, redevelopment or extension “does not lose the character of a ‘genuine proposal’ by reason of the fact that the commercial motivation of the lessor is to attract a tenant or a particular kind of tenant”.

The tenant still recovered damages, and the award was varied on appeal from $53,000 to $50,000.

The lesson for tenants is that the fight is rarely about the landlord’s motive and almost always about whether the notice itself contains enough information to show a genuine proposal at the time it was issued.

How Are Retail Lease Disputes Resolved in NSW?

Retail tenancy disputes must go to mediation through the NSW Small Business Commissioner before they can be taken to the NSW Civil and Administrative Tribunal.

Section 68 makes a mediation certificate a precondition to proceedings, and NCAT confirms that mediation is compulsory for most retail lease claims, with the certificate to be attached to the application unless an exemption applies.

The main exemption is an application asking for an order in the nature of an injunction, which can be brought without mediating first.

Mediation is the busiest part of the system by a wide margin.

The NSW Small Business Commission managed 1,960 mediation applications in 2025 and conducted 350 mediations, with retail lease matters making up 34 per cent of all applications received and 60 per cent of the mediations actually facilitated.

That is 210 retail lease mediations in a single year, which makes mediation the forum where most NSW retail leasing disputes are actually worked through.

What Does the NSW Small Business Commission Do?

The Commission runs the mediation service for retail tenancy disputes, issues the certificates that unlock NCAT, and handles applications for the appointment of a valuer where the parties cannot agree on market rent.

Its services are aimed at resolving matters before they become litigation, and the gap between the 1,960 applications it managed in 2025 and the 350 mediations it conducted shows that not every application proceeds to a formal mediation session.

A mediator does not decide the dispute.

The mediator helps the parties reach their own agreement, which is then recorded in writing and can be enforced through a court or tribunal.

The Commission also received 47 applications for the appointment of a retail valuer during 2025, which is a reminder that market rent disagreements are a common flashpoint in NSW retail tenancies.

Getting advice and applying for mediation early can reduce the cost and disruption of a dispute, particularly where the tenant is still trading, and the commercial relationship has not yet broken down completely.

When Can You Take a Retail Lease Dispute to NCAT?

An application can be made to NCAT once the Small Business Commissioner has issued a mediation certificate, and it must be lodged within three years after the liability or obligation that is the subject of the claim arose.

The Tribunal’s powers are broad, covering money orders, declarations that money is not owing, orders to carry out work, relief against forfeiture, rectification of a lease or a disclosure statement, and orders about entitlement to a security bond.

There is a hard ceiling on what the Tribunal can award.

Section 73 provides that NCAT has no jurisdiction if the total of the money to be paid, the money declared not owing, and the value of work to be done would exceed $750,000.

That figure applies to leases entered into on or after 1 July 2017, while leases entered into before that date remain subject to the older limit of $400,000.

Claims worth more than the limit have to go to court instead, so the value of a claim can decide the forum before anyone argues the merits.

How Is Market Rent Decided if You Cannot Agree?

Where a lease provides for a review to current market rent and the parties cannot agree, an independent valuer is appointed to determine it, and that determination binds both parties if it complies with the Act.

The Supreme Court examined how far a valuation can be challenged in Hanave Pty Ltd v Nomad Sydney Pty Ltd [2023] NSWSC 265.

The dispute concerned a Surry Hills restaurant lease with reviews to market every four years, and the valuer determined fair market rent at $252,000 excluding GST for the 2020 review.

The Tribunal held the valuation invalid, an Appeal Panel reversed that and declared it binding, and Chen J allowed the landlord’s appeal and set the Appeal Panel’s orders aside on the basis that the valuation lacked an adequate explanation of the valuer’s reasoning.

The question of who should redetermine the rent went back to the Appeal Panel.

The practical takeaway is that the weight a valuer gives to each statutory factor is a matter for the valuer, but the reasons have to be written and detailed enough to show that the relevant matters were actually considered.

An unexplained omission invites the inference that a relevant matter was disregarded, and that is the ground on which determinations are set aside.

What Else Should NSW Retail Tenants and Landlords Watch For?

Two issues sit outside the headline protections and decide real disputes: whether the parties can contract out of the Act, and what is coming next in the legislation.

Both are easy to miss during a negotiation, because neither appears in the clauses most people read closely.

A tenant who understands them can push back on terms that were never enforceable in the first place.

Can You Contract Out of the Retail Leases Act?

No, the parties cannot contract out of the Act, because section 7 makes any lease provision void to the extent it is inconsistent with the Act.

A clause that says the parties agree the Act does not apply is worth nothing if the premises meet the definition and clear the exclusions.

The same is true of a clause requiring the tenant to pay land tax without the single holding cap, or a rent ratchet clause, or a clause making the tenant pay the landlord’s costs of preparing the lease.

Those clauses turn up in leases regularly, often because a template drafted for a commercial tenancy has been reused for a retail shop.

The clause being void does not automatically mean the money comes back, since recovering payments already made raises separate questions about limitation periods and the circumstances of each payment.

It does mean the landlord cannot enforce the provision to the extent it is inconsistent with the Act.

Withholding money is a different decision from arguing the clause is void, and a tenant should get advice before stopping payment, because the landlord may dispute whether the Act applies at all or how the correct figure is worked out.

What Changes to the Retail Leases Act Are Being Proposed?

The Retail Leases Amendment (Review) Bill 2025 was introduced into the NSW Legislative Assembly on 14 October 2025 and, as at the date of writing, had not passed.

The NSW Parliament record shows the second reading debate adjourned on the day of introduction, with one amendment lodged in the Legislative Assembly since then, so nothing in the Bill is law and the current Act continues to apply in full.

The Bill would move the prescribed pre-lease documents and disclosure forms out of the Act and into regulations, and would let legally represented parties agree in writing to shorten or waive the seven day disclosure period.

Other proposals include clarifying how the Act applies to ancillary areas such as parking, storage and signage, easing the audit requirements for outgoings statements outside shopping centres, expanding the factors relevant to rent on a relocation, and excluding the profits or takings of a pharmacy business from turnover rent.

Anyone signing a long lease now should be aware that the disclosure regime in particular may look different by the time the lease comes up for renewal.

Until the Bill passes and commences, the rules described in this article are the rules that apply.

Get Help With Your NSW Retail Lease

The Retail Leases Act NSW decides whether a tenant gets a disclosure statement, a cap on land tax, a protected bond and access to mediation, or none of it, and that answer turns on details of size, term and permitted use that are easy to get wrong.

Whether you are signing, renewing, assigning or arguing about a retail shop lease, the time to check your position is before a deadline passes rather than after.

As retail lease lawyers in Sydney, the team at my law firm can review your lease, tell you whether the Act applies and explain what that means for you, all at a fixed fee agreed upfront.

Contact my law firm today by calling 1300-529-888.

This article is general information about NSW retail leasing law and is not legal advice, because how the Act applies depends on the wording of your lease, the permitted use, the size of the premises and the regulations in force at the time.

Frequently Asked Questions

Does the Retail Leases Act apply to a shop over 1,000 square metres in NSW?

No. Section 5 excludes shops with a lettable area of 1,000 square metres or more from the Act entirely. The threshold is “or more”, so a shop of exactly 1,000 square metres falls outside it. Lettable area does not include car parking spaces or storage areas that are not attached to the shop premises where the business is carried on.

Is there a minimum term for a retail lease in NSW?

No. New South Wales has no minimum term for a retail shop lease. The former five year minimum in section 16 was removed by the Retail Leases Amendment (Review) Act 2017, effective from 1 July 2017. A two year retail lease is valid and will not be extended by law, so tenants must negotiate options to renew.

Are gyms and small bars covered by the Retail Leases Act in NSW?

Yes. Since 1 January 2023, gymnasiums and fitness centres, including yoga, barre, pilates and dance studios, and small bars with a maximum patron capacity of 120, have been prescribed retail shops regardless of location. For leases entered into before that date, only Part 8 Division 2 applies, which gives access to mediation but not the full protections of the Act.

Can a NSW landlord make a retail tenant pay land tax?

Yes, but the amount is capped. Section 26 limits the tenant’s liability to the land tax that would have been assessed if the land concerned were the landlord’s only land. Landlords with large portfolios pay higher marginal rates, so a tenant cannot be charged more than the amount calculated on that single holding basis.

Do you have to mediate before taking a retail lease dispute to NCAT?

Yes, in almost all cases. Section 68 requires a mediation certificate from the NSW Small Business Commissioner before proceedings can start, and NCAT requires that certificate to be attached to the application. The main exemption is an application for an order in the nature of an injunction. Claims must be lodged within three years of the liability arising.

How long before signing must a NSW landlord give a disclosure statement?

At least seven days before the retail shop lease is entered into, the landlord must give the tenant a disclosure statement. The tenant must return a completed lessee’s disclosure statement within seven days of receiving it. If no statement is given, or it is materially false or misleading, the tenant may terminate within six months and claim compensation.