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Western Australia Commercial Lease Guide (Australia)

Commercial Lease Guide for Western Australia

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

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

Analyze My WA Lease

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

What to know before you sign

Western Australia regulates retail leases under the Commercial Tenancy (Retail Shops) Agreements Act 1985. Section 13 sets a 5-year minimum term for retail leases and section 6 requires a Disclosure Statement at least 7 days before signing.

WA differs from the east coast in one important way: land tax CAN be recovered from retail tenants if the lease specifically permits it. This single difference can add tens of thousands to annual occupancy cost — negotiate it out or cap it on a single-holding basis.

Major markets
Where commercial activity concentrates.
  • Perth CBD
  • West Perth
  • Subiaco
  • Fremantle
  • Joondalup
  • Mandurah
Common lease types
Typical structures and what to watch.
  • Retail shop lease under the CT(RS)A — disclosure + 5-year minimum
  • Office lease (commercial; fully negotiable)
  • Industrial / mining-services lease (long terms, indexed reviews, fit-for-purpose clauses)
  • Heads of Agreement (binding deal terms before final lease)
Cost drivers
Items that often create surprise bills.
  • Outgoings (council rates, water, insurance, repairs)
  • Land tax — recoverable from retail tenants if expressly permitted (negotiate out)
  • 10% GST on rent and outgoings
  • CPI or fixed % reviews; market review at option
  • Bank guarantee 3–6 months gross rent + outgoings + GST
  • Make-good — base-building reinstatement is the default

Key things to watch in Western Australia

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

Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA)
Western Australia regulates retail leases under the Commercial Tenancy (Retail Shops) Agreements Act 1985. Section 13 imposes a 5-year minimum term and s.6 requires a Disclosure Statement at least 7 days before signing.
Land Tax CAN Be Recovered (Unlike East Coast)
WA differs from NSW, Vic and Qld — land tax is recoverable from retail tenants if the lease specifically permits it. Negotiate this out, or at minimum cap it on a single-holding basis (rather than aggregated landlord-portfolio basis).
SAT for Retail Disputes
Retail tenancy disputes are heard in the State Administrative Tribunal (SAT), typically after Small Business Development Corporation (SBDC) mediation.

Negotiation checklist

Disclosure Statement under s.6
Landlord must provide a Disclosure Statement at least 7 days before lease signing. Cross-check estimated outgoings against historical statements and treat the disclosure as the binding floor.
Negotiate land tax out
Unlike NSW/Vic/Qld, WA permits land tax recovery from retail tenants if the lease says so. This is a big-ticket item. At minimum, cap to single-holding basis (so you don’t carry the landlord’s entire portfolio); ideally, exclude entirely.
5-year minimum term (s.13)
Retail leases default to a 5-year minimum unless the tenant waives in accordance with the Act. Don’t sign waivers without legal review — you’re giving up real statutory protection.
Ratchet clauses are void in retail
Ratchet clauses in market reviews are void for retail leases under the Act. For non-retail, negotiate this out manually.
Bank guarantee with hard cap and return date
Cap the bank guarantee to a single multiple of gross rent (3–6 months), require notice before drawdown, and set a return deadline within 30–60 days of expiry plus make-good completion.
Define make-good — exclude tenant fit-out where possible
Negotiate "good repair and condition" rather than base building. If you’re inheriting an existing fit-out, exclude it from your make-good obligation explicitly.
Mediation through SBDC before SAT
Retail tenancy disputes go through Small Business Development Corporation (SBDC) mediation before State Administrative Tribunal (SAT). Preserve that pathway in your notice and dispute clauses.

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

Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA)Small Business Development Corporation (SBDC)State Administrative Tribunal (SAT)Consumer Protection WA — commercial tenancies

Other regions

Frequently asked questions

Does the WA Retail Shops Act apply to my lease?

It generally applies to retail shop leases where the premises have a lettable area of 1,000 m² or less and are used to carry on a business of a kind covered by the Act. Unlike Victoria and South Australia, WA does not currently use a dollar-based rent threshold — coverage is size-based. Larger premises and most office/industrial leases fall outside, though the threshold has been subject to recent statutory review.

Can my WA landlord recover land tax?

Yes, if the lease permits it — unlike NSW/Vic/Qld, WA does not prohibit land tax recovery from retail tenants. Always negotiate this out, or at minimum require single-holding (not portfolio) basis.

How are retail lease disputes resolved in WA?

Most disputes go to mediation through the Small Business Development Corporation (SBDC) first, then to the State Administrative Tribunal (SAT) if unresolved.

Does BizLeaseCheck provide legal advice?

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