BizLeaseCheck
Victoria Commercial Lease Guide (Australia)

Commercial Lease Guide for Victoria

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

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

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

What to know before you sign

Victorian retail leases are governed by the Retail Leases Act 2003, which under section 21 sets a 5-year minimum term unless the tenant obtains a certificate from the Victorian Small Business Commission (VSBC) acknowledging the shorter term.

Section 17 of the Act requires the landlord to give a Disclosure Statement at least 14 days before lease signing — one of the strongest disclosure regimes in Australia. Land tax cannot be recovered from retail tenants in Victoria.

Major markets
Where commercial activity concentrates.
  • Melbourne CBD
  • Southbank
  • Docklands
  • Richmond
  • South Yarra
  • Geelong
  • Ballarat
Common lease types
Typical structures and what to watch.
  • Retail lease under the Retail Leases Act 2003 (VIC) — 14-day disclosure + 5-year minimum
  • Office lease (RLA does not apply — fully commercial; market and CPI reviews)
  • Industrial / warehouse lease (net + outgoings; 5–10 year terms with options)
  • Agreement for Lease + Lease (common for fit-out / new development deals)
Cost drivers
Items that often create surprise bills.
  • Outgoings (council rates, water, owners corporation fees, building insurance — land tax excluded for retail)
  • 10% GST on rent and outgoings
  • Fixed % or CPI rent reviews; market review at option exercise
  • Bank guarantee 3–6 months gross rent + outgoings + GST
  • Make-good — most disputes crystallise here at expiry
  • Owners corporation / strata levies in mixed-use buildings

Key things to watch in Victoria

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

Retail Leases Act 2003 (VIC)
Victoria’s Retail Leases Act 2003 imposes a 5-year minimum term under s.21 unless the tenant obtains a certificate from the Victorian Small Business Commission (VSBC) acknowledging the shorter term. Section 17 requires a compulsory disclosure statement at least 14 days before lease signing.
Land Tax Not Recoverable
Victoria prohibits landlords from recovering land tax from retail tenants. Review the outgoings schedule line by line and reject re-labelled land tax pass-throughs.
VCAT and VSBC Dispute Pathway
Retail lease disputes typically go to mediation at the Victorian Small Business Commission first, then to the Victorian Civil and Administrative Tribunal (VCAT) if unresolved. Keep notice clauses workable so you don’t lose statutory rights on a technicality.

Negotiation checklist

Get the s.17 Disclosure Statement 14 days before signing
Victoria’s 14-day disclosure window is longer than other states for a reason — use it. Material misstatements in the disclosure statement let you terminate within 28 days of becoming aware. Cross-check estimated outgoings against historical statements.
VSBC certificate is the only path to <5 year retail term
Under s.21 you can only have a retail lease shorter than 5 years if the tenant obtains a certificate from the Victorian Small Business Commission. Don’t accept landlord pressure to "just sign" a 3-year deal without the certificate — the term will be statutorily extended.
Reject any land tax recovery
Land tax is non-recoverable from retail tenants in Victoria (s.50). Watch for re-labelled line items in outgoings schedules.
Outgoings audit and reconciliation
Section 46 requires landlords to provide audited outgoings statements within 3 months of the end of each accounting period. Exercise that audit right — small landlords sometimes skip it and quietly over-recover.
Bank guarantee return within 30 days
The Act now requires landlords to return bank guarantees within 30 days of the tenant complying with all obligations after lease expiry. Use this as a hard deadline in the lease wording.
Define make-good precisely
Victorian landlords often try for "original (shell) condition" make-good. Negotiate to "good repair and condition" with reasonable wear and tear, attach a Schedule of Condition, and consider a cash settlement option to avoid disputes.
Mediate through VSBC before VCAT
Almost all retail lease disputes must go through VSBC mediation before VCAT. Preserve this pathway — it is faster and cheaper than the Supreme Court.

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 Leases Act 2003 (VIC)Victorian Small Business Commission (VSBC)Victorian Civil and Administrative Tribunal (VCAT)Consumer Affairs Victoria — retail leases

Other regions

Frequently asked questions

When does the Retail Leases Act 2003 (VIC) apply?

It applies to leases of premises used wholly or predominantly for the retail sale of goods or services where annual occupancy cost is below the prescribed threshold (currently $1 million under the Retail Leases Regulations 2023). Office, industrial and larger retail leases fall outside.

Can I sign a 3-year retail lease in Victoria?

Only if you obtain a VSBC certificate under s.21 acknowledging that you understand the shorter term and waive the 5-year statutory minimum. Without it, the term is automatically extended to 5 years.

How long do I have to challenge a misleading disclosure statement?

Generally 28 days from when you became aware of the misstatement. Practical tip: have a lawyer review the disclosure against historical outgoings data within the first month.

Does BizLeaseCheck provide legal advice?

No. BizLeaseCheck flags common Victorian lease risks and accelerates comparison, but it is not legal advice. Use it alongside an Australian lawyer for any lease you intend to sign.