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Office Space Lease Agreement (Australia)

Office Space Lease Agreement (Australia)

This Office Space Lease Agreement (the "Lease") is made on AGREEMENT DATE between:

LANDLORD NAME, ABN LANDLORD ABN, of LANDLORD ADDRESS, email: LANDLORD EMAIL (the "Landlord"); and

TENANT NAME, ABN TENANT ABN, of TENANT ADDRESS, email: TENANT EMAIL (the "Tenant").

This Lease is made under and with reference to the general law of STATE and applicable state property legislation, including the relevant Property Law Act or Conveyancing Act. The parties acknowledge that this Lease is a commercial lease and is not subject to any state Residential Tenancies Act. The parties have had the opportunity to seek independent legal advice from a commercial solicitor before signing.

1. PREMISES.

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the office premises at PREMISES ADDRESS (the "Premises"), comprising approximately PREMISES AREA net lettable area, together with the following included facilities: INCLUDED FACILITIES.

The Tenant acknowledges that the Premises have been inspected and that, subject to any defects notified to the Landlord within 7 days of the commencement date, the Tenant accepts the Premises in their current condition.

2. PERMITTED USE.

The Tenant may use the Premises only for PERMITTED USE. The Tenant must not use the Premises for any other purpose without the Landlord's prior written consent. The Tenant is responsible for obtaining and maintaining all licences, permits and approvals required for the permitted use, including any planning or development approvals required under applicable STATE planning legislation. The Tenant must not carry on any activity at the Premises that is unlawful, noxious, hazardous or offensive.

3. LEASE TERM.

The Lease commences on COMMENCEMENT DATE and expires on EXPIRY DATE, being a term of LEASE TERM (the "Initial Term"), unless sooner terminated in accordance with this Lease.

Time is of the essence in relation to all dates in this Lease. At the expiry of the Initial Term (or any option period), the Tenant must vacate the Premises and return them to the Landlord in accordance with the make good obligations in clause 8.

4. RENT AND GST.

The Tenant shall pay to the Landlord a base rent of BASE RENT, payable RENT FREQUENCY by bank transfer to the Landlord's nominated account.

GST: The base rent is expressed exclusive of Goods and Services Tax. GST at the rate of 10% is payable by the Tenant in addition to the base rent pursuant to the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The Landlord must issue a valid tax invoice to the Tenant for each rental payment. The Tenant, if registered for GST, may be entitled to claim an input tax credit for the GST paid on rent.

Rent Review: Rent shall be reviewed by the following mechanism: RENT REVIEW. Reviewed rent shall not be less than the rent payable immediately before the review date. The Landlord shall notify the Tenant of the reviewed rent no less than 30 days before it is to take effect.

5. OUTGOINGS.

OUTGOINGS TYPE. The Landlord will provide the Tenant with an estimated outgoings schedule at the commencement of each financial year. Actual outgoings will be reconciled annually and any underpayment or overpayment by the Tenant adjusted within 30 days of reconciliation.

6. SECURITY DEPOSIT / BANK GUARANTEE.

As security for the Tenant's obligations under this Lease, the Tenant shall provide: SECURITY DEPOSIT. The Landlord may draw on the security deposit or bank guarantee to satisfy any unmet obligation of the Tenant under this Lease, including unpaid rent, outstanding outgoings contributions, or the cost of remedying damage to the Premises. The Landlord must return the security deposit or bank guarantee to the Tenant within 30 days after the expiry or termination of this Lease, provided all the Tenant's obligations have been fulfilled.

7. MAKE GOOD OBLIGATIONS.

At the expiry or earlier termination of this Lease, the Tenant must: MAKE GOOD. The Tenant acknowledges that strict compliance with the make good obligations is a condition of the Landlord returning the security deposit or bank guarantee. The Landlord may, at its election, perform any uncompleted make good work and recover the reasonable cost from the Tenant or from the security.

8. INSURANCE.

Insurance requirements: INSURANCE. The Tenant must ensure that the Landlord is noted as an interested party on all liability insurance policies. The Landlord is responsible for maintaining building insurance for the structure of the building at replacement value. Each party is responsible for its own contents insurance.

9. ASSIGNMENT AND SUBLETTING.

The Tenant must not assign this Lease or sublet the whole or any part of the Premises without the Landlord's prior written consent. The Landlord must not unreasonably withhold or delay consent to an assignment or subletting, but may have regard to the financial capacity and business character of the proposed assignee or sublessee. The Tenant remains liable to the Landlord for all obligations under this Lease after any permitted assignment unless the Landlord expressly releases the Tenant in writing.

10. DEFAULT AND TERMINATION.

If the Tenant: (a) fails to pay rent or any other amount due under this Lease within 7 days of the due date; (b) breaches any other term of this Lease and fails to remedy the breach within 14 days of receiving written notice from the Landlord requiring remedy; or (c) becomes insolvent, is wound up, or has a receiver, administrator or liquidator appointed — the Landlord may, by written notice, terminate this Lease and re-enter and take possession of the Premises. Termination does not release the Tenant from liability for rent and other amounts accrued to the date of termination or for damages arising from the breach.

11. DISPUTE RESOLUTION.

If a dispute arises about the interpretation or application of this Lease, the parties shall first attempt to resolve it by good faith negotiation. If the dispute is not resolved within 14 days of written notice from one party to the other identifying the dispute, either party may refer the matter to mediation with a mediator nominated by the STATE Law Society or the Resolution Institute before commencing any court proceedings, except where urgent injunctive or other interlocutory relief is required.

12. ADDITIONAL TERMS.

Additional agreed terms: ADDITIONAL TERMS.

13. GENERAL PROVISIONS.

This Lease is governed by the laws of STATE. This Lease constitutes the entire agreement between the parties with respect to the leasing of the Premises and supersedes all prior negotiations, representations and agreements. Any variation to this Lease must be in writing and signed by both parties. Notices under this Lease may be given by hand delivery, post or email to the addresses set out in this Lease and will be deemed received: if delivered by hand, on delivery; if sent by post, 2 business days after posting; and if sent by email, when the email leaves the sender's server during business hours on a business day in STATE.

Each party warrants that it has authority to enter into this Lease and that the person signing on its behalf is duly authorised to do so. If the Landlord or Tenant is a company, execution must comply with section 127 of the Corporations Act 2001 (Cth) or be under a valid power of attorney.

EXECUTION.

EXECUTED as an agreement on AGREEMENT DATE.

LANDLORD: LANDLORD NAME

Signed: ___________________________ Date: ___________

Name: ___________________________ Position: ___________

TENANT: TENANT NAME

Signed: ___________________________ Date: ___________

Name: ___________________________ Position: ___________

Landlord

________________

Signature

Date: ________________

Tenant

________________

Signature

Date: ________________

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What Is a Office Space Lease Agreement (Australia)?

An Office Space Lease Agreement in Australia grants a tenant the right to occupy commercial premises and fixes the rent, term, outgoings, and repair obligations between landlord and tenant, governed by the Real Property Act 1900 (NSW).

Office leases in Australia are not subject to the same mandatory consumer protection framework as residential tenancies (governed by state Residential Tenancies Acts) or retail leases (governed by state Retail Leases Acts). Instead, office tenancies are primarily governed by general contract law principles and state property legislation, including the Property Law Act 1974 (QLD), the Conveyancing Act 1919 (NSW), the Property Law Act 1958 (VIC), and equivalent legislation in other states and territories. This means the negotiated terms of an office lease carry substantial legal weight and that both parties should carefully consider all terms before signing.

GST at 10% is payable on all commercial office rent under the A New Tax System (Goods and Services Tax) Act 1999 (Cth). The landlord must be GST-registered and must issue valid tax invoices for each rental payment. Office tenants registered for GST can claim input tax credits on rent paid.

An office space lease may take the form of a gross lease (where the landlord pays all outgoings from the rent received) or a net lease (where the tenant contributes a proportionate share of building operating costs). The outgoings structure is a key commercial negotiating point and should be clearly documented.

The legal framework governing the Office Space Lease 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 Office Space Lease 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 Office Space Lease Agreement (Australia)?

An Office Space Lease Agreement is required whenever a business tenant takes possession of office premises in Australia under a formal tenancy arrangement. It is relevant for all types of office occupancy, including professional suites, corporate headquarters, coworking-style dedicated offices, medical or allied health suites, and serviced office arrangements where a formal lease (rather than a licence) is used.

You should use an office space lease when: a business is establishing a new office location; a landlord is formalising the terms under which a business tenant will occupy commercial office space; an existing informal arrangement needs to be properly documented; a lease is being renewed or renegotiated at the end of an existing term; or a business is being sold or acquired and the incoming owner needs the office lease assigned.

A written lease is essential even for short-term office arrangements. Without a written agreement, the terms of the tenancy are governed entirely by the general law, which may not reflect the parties' intentions and can lead to costly disputes about rent, outgoings, security, make good, and access rights.

For landlords, a well-drafted office lease protects the investment by clearly defining the permitted use, confirming the tenant maintains appropriate insurance, and setting out enforceable make good obligations at the end of the term. For tenants, a clearly documented lease protects the security of the business's physical location and confirms that all agreed incentives (such as rent-free periods, fitout contributions, and option rights) are legally enforceable.

Parties in Australia should prepare a Office Space Lease Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. 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. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

What to Include in Your Office Space Lease Agreement (Australia)

A well-drafted Australian Office Space Lease Agreement should include the following key elements.

The parties and premises section must correctly identify both the landlord and tenant by their full legal names and, for companies, their Australian Company Numbers (ACNs) and Australian Business Numbers (ABNs). The premises must be precisely described, including the suite or level number, building address, postcode, and an indication of the approximate net lettable area. Any included facilities — such as car parking, storage, boardroom access, or common area entitlements — should be listed to avoid future disputes.

The permitted use clause defines the specific purpose for which the tenant is authorised to use the office space. This should be broad enough to accommodate the tenant's business activities but specific enough to prevent uses that might damage the building or interfere with other tenants. Planning and zoning compliance is the tenant's responsibility.

The lease term section sets out the commencement date, initial term, and expiry date. An option to renew — giving the tenant the right to extend the lease for a further period — should specify the option term, the notice period required to exercise it, and the conditions that must be satisfied (including no existing breach). Rent for any option period is typically reset to market rent.

The rent and GST section must clearly state the annual base rent exclusive of GST, the payment frequency, and the payment method. It should also confirm that GST of 10% is payable in addition to base rent under the GST Act. The rent review section documents how rent will be increased during the term — by a fixed percentage, by reference to the CPI published by the Australian Bureau of Statistics, or by market review.

Outgoings, security, fitout condition, make good obligations, insurance requirements, and assignment conditions are all key commercial terms that should be thoroughly documented to protect both parties throughout the lease term and upon its expiry.

Additional compliance elements for a Office Space Lease 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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Forms Legal. (2026). Office Space Lease Agreement (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/real-estate/leases/office-space-lease-agreement-australia

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BibTeX
@misc{formslegal-office-space-lease-agreement-australia,
  author       = {{Forms Legal}},
  title        = {Office Space Lease Agreement (Australia) (Australia)},
  year         = {2026},
  howpublished = {\url{https://forms-legal.com/australia/real-estate/leases/office-space-lease-agreement-australia}},
  note         = {Free legal document template. Based on Real Property Act 1900 (NSW)}
}

Frequently Asked Questions

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