Harmonisation of retail tenancies and related commercial leasing
Submission Date: 22 October 2026
The Law Council supports consideration of opportunities to achieve greater consistency in retail tenancy regulation across Australia. Greater consistency has the potential to reduce complexity and compliance costs, particularly for landlords, tenants and advisers operating across multiple jurisdictions. However, harmonisation should not be pursued for its own sake. The benefits of reform will depend on the substantive content of any harmonised framework, the protections it provides, and the compliance burdens it may reduce or impose.
The benefits of harmonisation are unlikely to be distributed evenly. They are likely to be greatest for parties operating across multiple jurisdictions, while landlords and tenants whose activities are confined to a single jurisdiction may incur transition and compliance costs without obtaining the same benefits from national consistency. Reform should therefore be directed towards substantive improvements in retail tenancy regulation, having regard to the different impacts of reform on parties operating nationally and those whose activities are confined to a single jurisdiction.
Feedback to the Law Council through this consultation process has identified several areas in which greater national consistency may be beneficial. In particular, there is support for greater consistency in the scope and coverage of retail tenancy legislation and in pre-lease disclosure requirements. Other areas identified for potential alignment include elements of lease terms and renewal processes, rent review, outgoings, assignment processes and minimum standards for dispute resolution.
While there is a degree of divergence in relation to the most appropriate model for achieving greater national consistency, there is considerable support for a model law based on a national minimum baseline. This approach is likely to be the most workable, having regard to the need to reach agreement among the States and Territories, each of which already has an established legislative framework. However, there is also some support for a single Commonwealth law applying nationally and replacing State and Territory retail tenancy legislation. This view, however, acknowledges the practical difficulties associated with this approach, and notes that if a single national law is not achievable a model law with national minimum baselines may be a more practical approach.
Regardless of the model pursued, careful implementation will be critical. Retail leases are long-term contractual arrangements, and reforms will require appropriate transitional arrangements, sufficient implementation time and consideration of their effects on existing documentation, processes and industry participants. Any national framework will also require governance arrangements capable of maintaining alignment over time and managing the risk that jurisdictions may subsequently diverge from an agreed position.
Last Updated on 26/10/2026
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