Changes to the Retail Leases Act in NSW

Changes to the Retail Leases Act in NSW

Retail Leases Amendment (Review) Bill 2025 marks commencement of phase 1 of retail leases reform.

On 14 October 2025, NSW Parliament introduced the Retail Leases Amendment (Review) Bill 2025 (the Bill), as the first set of reform to adopt following a statutory review of the Retail Leases Act 1994 (the Act) in 2023.

Some of the key changes introduced by the Bill are:

• Entering into a retail shop lease
  • prospective lessors of a retail shop may only offer or advertise a shop for lease if a copy of proposed lease is available for inspection (the proposed lease does not need to include details of the term or rent payable); [Sch 1[5]]
  • currently a lessor is required to provide a disclosure statement at least 7 days before a lease is entered into. The Bill introduces an amendment to allow lessors and lessees to agree to a lesser period or waive the 7 day period where both the lessor and lessee have received independent legal advice and consent in writing; [Sch 1[7]]
  • disclosure statements may be amended by mutual agreement, providing flexibility to correct or update information before or after the lease is entered into; [Sch 1[7]] and
  • lease preparation expenses may be sought from the lessee if the parties elect to enter into a new lease instead when an existing lease could have been assigned. [Sch 1[8]]

• Extension of 3 month period to provide signed lease
  • an additional ground to extend the 3-month period for the lessor to provide an executed copy of the lease and to lodge the lease for registration is added, being any delays caused by the lessee failing to provide the lessor with relevant documents relating to the lease [Sch 1[10], 1[11]].

• Technical changes in retail leasing
  • Profits or takings of a pharmacy business will be excluded from the definition of turnover [Sch 1[12]];
  • a retail shop not in a shopping centre must engage a certified practising accountant to prepare the outgoings statement [Sch 1[13]];
  • adjustment of rent must take into account commercial factors if the lease enables the lessor to relocate the lessee [Sch 1[15]]; and
  • premises that are ancillary to the operation of the retail shop, such as car parking, signage and storage areas, are covered by the lease and the Act. [Sch 1[18]]

The NSW government remarked that this current Bill marked the beginning of retail leasing reforms and it is currently in consultation with stakeholders on the next phase of legislative amendments.

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This article was first published on 20 October 2025. It was written by Coco Chen from our Sydney office, and peer reviewed by Emma Smythies.

© Bugden Allen Group Legal Pty Ltd. This is general information only and not legal advice. You should not rely on this information without seeking legal advice tailored to your specific circumstances.