South Australia Commercial Lease Guide (Australia)

Commercial Lease Guide for South Australia

A practical, tenant-focused guide to South Australian commercial leases — not legal advice.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

Not legal advice. Use this as a checklist and discuss with a qualified Australian professional.

What to know before you sign

South Australia is unusual: the Retail and Commercial Leases Act 1995 (RCLA) covers both retail and many smaller commercial leases — not just retail. Coverage is triggered by a rent threshold (currently $420,000 p.a. excl. GST, increased from $400,000 on 1 July 2025). Above that threshold the lease is fully commercial with far fewer statutory protections.

Section 20B imposes a 5-year minimum term for covered leases unless the tenant signs a certificate. A Disclosure Statement is required before signing. SA also has a Small Business Commissioner who mediates disputes before they go to the Magistrates Court.

Major markets

Where commercial activity concentrates.

Adelaide CBD
North Adelaide
Norwood
Glenelg
Mawson Lakes
Mount Gambier

Common lease types

Typical structures and what to watch.

Retail/commercial lease under the RCLA (below rent threshold) — disclosure + 5-year minimum
Pure commercial lease (above threshold) — no RCLA protections; fully negotiable
Industrial / warehouse lease (typically net + outgoings)
Agreement to Lease (binding pre-lease for new buildings/fit-outs)

Cost drivers

Items that often create surprise bills.

Outgoings (council rates, water, building insurance, repairs)
10% GST on rent and outgoings
CPI or fixed % rent reviews; market review at option
Bank guarantee 3–6 months gross rent + outgoings + GST
Make-good obligations — base-building reinstatement is common
Landlord legal fees (often passed on unless negotiated out)

Key things to watch in South Australia

Every Australian state and territory has its own Retail Leases Act framework. Here are top issues we see for tenants in South Australia:

Retail and Commercial Leases Act 1995 (SA)

South Australia is unusual in that its RLA covers both retail and many smaller commercial leases (under the rent threshold). Section 20B imposes a 5-year minimum term unless the tenant signs a certificate. A Disclosure Statement is required before signing.

Rent Threshold Triggers Coverage

SA’s RCLA applies when rent is at or below a prescribed threshold (currently $420,000 p.a. excl. GST, increased from $400,000 on 1 July 2025) — above that, the lease is treated as commercial and statutory protections fall away. Confirm threshold status because it changes your negotiating leverage substantially.

Magistrates Court (Commercial Tenancies)

Retail and commercial tenancy disputes in SA go to the Magistrates Court (Commercial Division), often after mediation through the Small Business Commissioner SA.

Negotiation checklist

Confirm threshold status first

Calculate annual rent excluding GST. If at or under $420,000 p.a. (the prescribed threshold from 1 July 2025, up from $400,000), the RCLA applies — and you have statutory protections. Above, you’re negotiating from a much weaker base. The Valuer-General reviews the threshold periodically.

Disclosure Statement before signing

Under the RCLA the landlord must give a Disclosure Statement before signing. Material misstatements give the tenant termination rights — treat it as the binding outgoings baseline.

5-year minimum term or certificate (s.20B)

For covered leases, the term cannot be less than 5 years unless the tenant signs a certificate. Don’t waive this casually — the protection exists for a reason.

Outgoings audit rights

Require itemised annual outgoings statements and audit rights. Exclude landlord overhead and capital replacements (or amortise them over useful life).

No landlord legal-fee pass-through

SA leases sometimes include landlord legal fee recovery clauses. Under the RCLA this is restricted for covered leases — strike it out for non-covered (commercial) leases as well.

Bank guarantee, not cash bond

Provide a bank guarantee (3–6 months gross rent) with hard return deadline post-expiry and make-good completion. Cap drawdown rights to defined defaults.

Mediation through Small Business Commissioner

SA has a Small Business Commissioner who provides free mediation. Preserve this pathway — it’s much cheaper than the Magistrates Court (Commercial).

Common landlord traps

Uncapped outgoings: Council rates, water, insurance and repairs can escalate without a cap — and in some states, land tax sneaks in disguised as another line item.
Aggressive make-good: "Base building" or "original condition" make-good is the most expensive end-of-lease surprise — define the standard precisely.
Missed option notice: Renewal options typically require strict written notice (often 6 months). Late exercise extinguishes the option entirely — diary the date at signing.
Bank guarantee without return deadline: Open-ended landlord drawdown rights and no clear post-expiry return deadline can leave your guarantee locked up indefinitely.

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Official resources

Retail and Commercial Leases Act 1995 (SA)Small Business Commissioner SA Magistrates Court of SA (Commercial)business.sa.gov.au — commercial tenancies

Other regions

Frequently asked questions

Does the SA Retail and Commercial Leases Act apply to my lease?

It applies when annual rent (excluding GST) is at or below the prescribed threshold (currently $420,000 p.a., increased from $400,000 effective 1 July 2025). Above that, it’s a fully commercial lease without RCLA protections.

What happens if my rent crosses the threshold mid-lease?

Generally, RCLA coverage is determined at lease commencement. Subsequent rent increases that take you above the threshold do not strip coverage — but check the current Act and recent amendments with a SA-admitted lawyer.

How are SA retail/commercial lease disputes resolved?

Most disputes go to mediation through the Small Business Commissioner SA first, then to the Magistrates Court (Commercial Division) if mediation fails.

Does BizLeaseCheck provide legal advice?

No. BizLeaseCheck flags common SA lease risks but is not legal advice. Use it alongside a qualified SA-admitted lawyer.