Co-tenancy Agreement (Australia)
This Co-tenancy Agreement (the “Agreement”) is made on [Agreement Date] between the following co-tenants of the residential premises described below:
1. [Tenant 1 Name]
2. [Tenant 2 Name]
[Additional Tenants]
Each person listed above is a “Co-tenant” and collectively they are the “Co-tenants”.
BACKGROUND
A. The Co-tenants are all named tenants on the residential tenancy agreement (the “Head Lease”) entered into with [Landlord Name] (the “Landlord”) for the property at [Property Address], [Property Suburb], [Property State] [Property Postcode] (the “Property”), commencing [Lease Start Date] and ending [Lease End Date].
B. The Co-tenants wish to regulate their relationship with each other regarding the sharing of rent, bond, utilities, and household responsibilities.
C. This Agreement does not alter the Co-tenants’ joint and several obligations to the Landlord under the Head Lease, which are governed by the applicable residential tenancy legislation in [Property State].
NOW, THEREFORE, the Co-tenants agree as follows:
3. RENT CONTRIBUTIONS
3.1 The total weekly rent payable to the Landlord under the Head Lease is $[Total Weekly Rent] AUD. Each Co-tenant agrees to contribute the following amounts each week:
[Tenant 1 Name]: $[Tenant 1 Rent Share] per week
[Tenant 2 Name]: $[Tenant 2 Rent Share] per week
[Other Rent Shares]
3.2 Each Co-tenant must pay their rent contribution to the designated account or to the Co-tenant responsible for consolidating payments on or before the day the consolidated rent is due to the Landlord.
3.3 If a Co-tenant fails to pay their rent contribution on time, the other Co-tenants may (but are not obliged to) cover the shortfall to avoid a breach of the Head Lease, and the defaulting Co-tenant must reimburse the covering Co-tenant within 7 days together with any late payment fee charged by the Landlord that is attributable to the default.
3.4 Each Co-tenant acknowledges that under the applicable residential tenancy legislation in [Property State], all Co-tenants are jointly and severally liable to the Landlord for the full amount of rent. This Agreement records each Co-tenant’s agreed internal contribution but does not limit their liability to the Landlord.
4. RENTAL BOND
4.1 The total rental bond lodged with the relevant state bond authority is $[Total Bond Amount] AUD, to which each Co-tenant has contributed as follows:
[Tenant 1 Name]: $[Tenant 1 Bond Share]
[Tenant 2 Name]: $[Tenant 2 Bond Share]
4.2 At the end of the tenancy, the bond will be refunded (in whole or in part) in accordance with the relevant state residential tenancy legislation and any applicable bond authority determination.
4.3 Any deductions from the bond made by the Landlord for damage, cleaning, or unpaid rent that are attributable to a particular Co-tenant’s conduct will be borne by that Co-tenant. General wear and tear deductions will be shared equally between all Co-tenants unless otherwise agreed in writing.
4.4 Where a Co-tenant vacates during the tenancy and is replaced by a new co-tenant, the departing Co-tenant’s bond contribution will be transferred to or reimbursed by the incoming co-tenant in accordance with clause 5 of this Agreement and any applicable bond transfer process under state law.
5. UTILITIES AND SHARED EXPENSES
5.1 The Co-tenants agree to share utilities and household expenses as follows:
[Utilities Split]
5.2 Each Co-tenant is responsible for paying their share of utilities on time to avoid disconnection. Where one Co-tenant pays a shared utility bill in full, the other Co-tenants must reimburse their share within 7 days of being notified.
5.3 Shared groceries, streaming services, and other discretionary household expenses are not covered by this Agreement and are a matter for separate arrangement between Co-tenants.
6. HOUSE RULES
6.1 The Co-tenants agree to abide by the following house rules:
[House Rules]
6.2 The Co-tenants agree to communicate respectfully and to raise concerns directly with each other before escalating any dispute.
6.3 Changes to these house rules require the written agreement of all Co-tenants.
7. REPLACEMENT OF CO-TENANTS
7.1 Process for replacing a Co-tenant: [Replacement Process]
7.2 A new co-tenant will only become a co-tenant under the Head Lease after receiving the Landlord’s written consent, which may be required under state residential tenancy legislation (for example, ss 73–74 of the Residential Tenancies Act 2010 (NSW) or ss 92–93 of the Residential Tenancies Act 1997 (VIC)).
7.3 The departing Co-tenant must ensure the incoming co-tenant signs a new or amended co-tenancy agreement before vacating the Property to ensure all remaining Co-tenants are protected.
8. DISPUTES AND GENERAL PROVISIONS
8.1 In the event of a dispute between Co-tenants, the Co-tenants must attempt to resolve it by good-faith discussion within 7 days of written notice of the dispute.
8.2 If a dispute cannot be resolved by negotiation, any Co-tenant may refer the matter to the relevant state tenancy authority for mediation or conciliation — for example, NSW Fair Trading, Consumer Affairs Victoria, the Residential Tenancies Authority (QLD), or the equivalent body in the applicable state or territory.
8.3 This Agreement is an internal arrangement between the Co-tenants and does not create any rights or obligations as between any Co-tenant and the Landlord. The Head Lease remains the governing document for the relationship between the Co-tenants and the Landlord.
8.4 This Agreement is governed by the law of [Governing State], Australia. The Co-tenants submit to the non-exclusive jurisdiction of the courts of [Governing State].
8.5 This Agreement may be amended by written agreement signed by all Co-tenants.
SIGNED by all Co-tenants:
Co-tenant 1: [Tenant 1 Name]
Co-tenant 2: [Tenant 2 Name]
Property: [Property Address], [Property Suburb], [Property State] [Property Postcode]
Co-tenant 1
________________
Signature
Date: ________________
Co-tenant 2
________________
Signature
Date: ________________
What Is a Co-tenancy Agreement (Australia)?
A Co-tenancy Agreement in Australia grants a tenant the right to occupy residential premises and records the rent, bond, term, and the repair and notice obligations of landlord and tenant under the Real Property Act 1900 (NSW).
In Australia, residential tenancy law is a state and territory matter. Each state has its own Residential Tenancies Act — including the Residential Tenancies Act 2010 (NSW), the Residential Tenancies Act 1997 (VIC), the Residential Tenancies and Rooming Accommodation Act 2008 (QLD), the Residential Tenancies Act 1987 (WA), the Residential Tenancies Act 1995 (SA), the Residential Tenancy Act 1997 (TAS), the Residential Tenancies Act 1999 (NT), and the Residential Tenancies Act 1997 (ACT) — and these Acts regulate the relationship between landlords and tenants. None of these Acts regulates the internal relationship between co-tenants, which is why a co-tenancy agreement is necessary.
A fundamental feature of Australian co-tenancies is joint and several liability. Every co-tenant who signs the head lease is jointly and severally liable to the landlord for the full rent and for any breach of the tenancy agreement, regardless of the internal rent-splitting arrangement. This means if one co-tenant fails to pay their share, the other co-tenants must cover the shortfall to avoid breach of the head lease — and the only recourse against the defaulting co-tenant is through the co-tenancy agreement or the courts.
Rental bonds in Australia are lodged with a state bond authority — not with individual co-tenants. The Rental Bond Board (NSW), the Residential Tenancies Bond Authority (VIC), and similar bodies hold bonds on behalf of all tenants collectively. When the tenancy ends, any refund is distributed among co-tenants, and the co-tenancy agreement provides the documentary basis for determining each person's share of the refund.
The legal framework governing the Co-tenancy Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Parties executing a Co-tenancy Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Real Property Act 1900 (NSW) sets the foundational requirements.
When Do You Need a Co-tenancy Agreement (Australia)?
A Co-tenancy Agreement is needed whenever two or more unrelated people or couples share a rental property in Australia and are all named on the head lease. This covers the most common forms of shared housing in Australian cities: students sharing a rental near a university, young professionals sharing an apartment in the inner suburbs, and couples or friends sharing a house to reduce living costs.
A written co-tenancy agreement is especially important in the following circumstances: when co-tenants have different financial situations and have agreed on an unequal rent split, which should be documented to prevent later disputes; when bond contributions are unequal, which must be recorded to confirm fair return; when there is any likelihood that one co-tenant may want to leave before the end of the lease, and the process for finding a replacement needs to be pre-agreed; when co-tenants have different lifestyle expectations — regarding quiet hours, guests, cleanliness, or pets — that should be established upfront; and when the co-tenants do not already know each other well and want clear rules from the start.
Without a written agreement, disputes about unpaid rent, damage costs, utility bills, and bond returns are resolved only by negotiation or through the relevant state tenancy tribunal (such as NCAT in NSW or VCAT in Victoria), which can be time-consuming and costly. State tenancy tribunals generally have jurisdiction only over disputes between tenants and landlords, not between co-tenants, which means co-tenant disputes may need to go to the Magistrates Court or Local Court, making written documentation even more important.
A co-tenancy agreement also provides a clear framework for the replacement process — what notice must be given, how a replacement is found, and who bears responsibility for rent in the interim — which is one of the most common and contentious situations in shared rentals.
What to Include in Your Co-tenancy Agreement (Australia)
A complete Australian Co-tenancy Agreement should contain the following key provisions.
Head lease reference — Identify the head lease by reference to the landlord's name, the property address, and the commencement and end dates. Confirm that all co-tenants are named on the head lease and acknowledge their joint and several liability to the landlord, so each co-tenant understands the legal consequences of the other's default.
Rent contributions — Record each co-tenant's agreed weekly rent contribution. Specify the account into which each co-tenant must pay their share, the timing of payment, and what happens if one co-tenant fails to pay — including the obligation to reimburse the co-tenant who covers the shortfall.
Bond contributions and return — Record each co-tenant's exact cash contribution to the rental bond. Specify how any bond deduction at the end of the tenancy will be allocated between co-tenants (by fault or equally), and how the refund will be divided. Reference the relevant state bond authority and process.
Utilities and shared expenses — Document which utilities are in each co-tenant's name, how each bill will be split, and the timeline for reimbursement. Address internet, electricity, gas, and any building-related charges passed through by the landlord. Be specific about what happens if a co-tenant moves out mid-billing period.
House rules — Record the agreed rules for quiet hours, guest policies (including overnight guests), cleaning rosters, kitchen use, common area maintenance, smoking, pets, and any other matters important to the co-tenants. These rules form the most operationally significant part of the agreement.
Replacement process — Specify the notice period a departing co-tenant must give, the process for finding and vetting a replacement, the consent requirements (from remaining co-tenants and the landlord), and who bears rent liability during the transition period. Reference the applicable state residential tenancy legislation for the formal steps required to change the head lease.
Dispute resolution — Include a brief process for resolving disputes between co-tenants, referencing the relevant state tenancy authority as a mediation resource, and noting that co-tenant disputes may ultimately need to go to the Magistrates Court or Local Court if mediation fails.
Additional compliance elements for a Co-tenancy Agreement (Australia) used in Australia include: Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Co-tenancy Agreement (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/real-estate/leases/co-tenancy-agreement-australia
"Co-tenancy Agreement (Australia) (Australia)." Forms Legal, 2026, https://forms-legal.com/australia/real-estate/leases/co-tenancy-agreement-australia.
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title = {Co-tenancy Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/real-estate/leases/co-tenancy-agreement-australia}},
note = {Free legal document template. Based on Real Property Act 1900 (NSW)}
}Also available for these jurisdictions:
Frequently Asked Questions
Yes. In all Australian states and territories, co-tenants who are all named on the residential tenancy agreement (the head lease) are jointly and severally liable to the landlord for the full amount of rent and for any damage to the property. Joint and several liability means the landlord can pursue any one co-tenant for the entire rent debt, regardless of the internal arrangement between co-tenants about who pays what. For example, under the Residential Tenancies Act 2010 (NSW) and its equivalents in other states, all named tenants are parties to the tenancy agreement and each is fully liable for all obligations under it. This is why a co-tenancy agreement — which records each person's internal contribution — is important: it creates a contractual right for the paying co-tenant to recover from the non-paying co-tenant.
Residential rental bonds are lodged with a state bond authority — for example, the NSW Rental Bond Board, the Residential Tenancies Bond Authority (VIC), or the Residential Tenancies Authority (QLD). The bond is held in the name of all tenants collectively on the one tenancy agreement, not in individual names. When the tenancy ends, any refund is paid to the tenants collectively, and co-tenants must determine among themselves how to divide the refund. A co-tenancy agreement should record each co-tenant's actual cash contribution to the bond so that the refund can be distributed proportionately. If the landlord makes a deduction from the bond, the co-tenancy agreement can allocate responsibility for that deduction to the co-tenant whose conduct caused it. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
A co-tenant who wants to vacate a shared rental property mid-lease faces a complex situation under Australian residential tenancy law. All named tenants on a fixed-term tenancy agreement are bound by the lease until its expiry date, and breaking a fixed-term lease early can attract break fees or liability for loss of rent in most states. The departing co-tenant's options typically include: (1) finding a replacement tenant who is approved by the landlord, with all parties signing a bond transfer form and, in most states, a new or varied tenancy agreement; (2) obtaining the landlord's consent to be removed from the tenancy agreement while the remaining co-tenants stay; or (3) all co-tenants agreeing to surrender the tenancy. State tenancy authorities — such as NSW Fair Trading, Consumer Affairs Victoria, or the RTA in Queensland — provide guidance on the specific process required in each state.
A co-tenancy agreement is a private arrangement between the co-tenants — the named tenants on the head lease. It does not need to be shown to or approved by the landlord because it does not alter the co-tenants' obligations under the head lease. However, if the co-tenants want to replace a departing co-tenant, they generally do need the landlord's written consent to add a new tenant to the head lease. In NSW, for example, s 74 of the Residential Tenancies Act 2010 requires the landlord's consent to a change of tenants. Without that consent, the incoming person would be a subtenant or lodger — not a co-tenant under the head lease — and would not have the same rights and protections. Always check the head lease and applicable state legislation before any change of occupancy. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
There are several approaches to managing utility bills in a shared rental in Australia. The simplest is to put all utilities in one co-tenant's name (or rotate them) and split costs equally, with reimbursement due within a set number of days after the bill arrives. Where co-tenants have different usage patterns — for example, one works from home and uses more electricity — an unequal split based on occupancy or estimated usage may be fairer. Some co-tenants prefer to split specific bills rather than pooling everything: for example, Tenant 1 pays electricity, Tenant 2 pays internet, and they each pay the other a quarterly equalisation payment. Whatever arrangement is chosen, it should be documented in the co-tenancy agreement to prevent disputes. Note that internet plans are typically contracted to one person, and the co-tenancy agreement should specify how that contract is managed if that person vacates.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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