A Lease Extension / Renewal Agreement is a written document that records the mutual agreement of a landlord and tenant to extend an existing residential or commercial tenancy in Australia beyond its original end date. Rather than the tenancy automatically rolling over into an informal periodic arrangement (with no record of the agreed terms), a Lease Extension Agreement provides a clear, signed record of exactly what the parties have agreed — including the new term, any revised rent, and any changes to the original conditions.

In Australia, residential tenancy agreements are regulated by state and territory legislation. The key acts include 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 1997 (ACT), and the Residential Tenancies Act 1999 (NT). For commercial and retail premises, the applicable legislation includes the Retail Leases Act 2022 (NSW), the Retail Leases Act 2003 (VIC), and equivalent state acts.

For residential tenancies, a Lease Extension Agreement can take two forms. A fixed-term extension sets a new end date, giving both parties certainty about the duration of the arrangement. A periodic conversion documents the transition from a fixed-term tenancy to a rolling (week-to-week or month-to-month) tenancy, which may be appropriate where either party prefers flexibility over commitment to a further fixed term.

The Lease Extension Agreement should also address any rent review. Under all Australian residential tenancy acts, rent increases require a minimum written notice period (generally 60 days in NSW, VIC, and QLD) and may not occur more frequently than once every 12 months. A Lease Extension Agreement can serve as the required notice of a rent increase, provided it is given to the tenant at least 60 days before the new rent takes effect.

This template is suitable for both residential and commercial lease extensions in any Australian state or territory. It is designed to supplement and extend the original lease, incorporating all the terms of that agreement except where expressly varied.

A Lease Extension Agreement is needed whenever a landlord and tenant agree to continue a tenancy in Australia beyond the end of the original fixed term. It is most commonly used at the time the original lease expires, but may also be used at an earlier point if the parties wish to lock in an extension before the end date arrives.

A written Lease Extension Agreement is important in several situations. First, where the rent is being increased — a written agreement provides clear evidence of the new rent amount and the date from which it takes effect, complying with the statutory notice requirements of the applicable Residential Tenancies Act. Second, where any other terms of the original lease are being varied — for example, where a pet has been approved, a parking arrangement has changed, or a specific maintenance obligation has been agreed. Third, where both parties want certainty — a written fixed-term extension gives both the landlord and the tenant clarity about when the tenancy ends and removes ambiguity about notice requirements.

A Lease Extension Agreement is also valuable for commercial tenancies, where a written extension documents the agreed rental and any rent review mechanism for the extended period and provides certainty for both parties.

In practice, lease extensions are very common in Australia. Many tenants prefer to remain in a property they are happy with, and landlords often prefer to retain a reliable, paying tenant rather than incur the cost and uncertainty of finding a new one. A Lease Extension Agreement formalises this mutually beneficial arrangement in a way that protects both parties.

The agreement is appropriate for both residential and commercial lease extensions across all Australian states and territories. It should be used together with the original lease, which continues to govern all terms that are not specifically varied by the Extension Agreement.

A well-drafted Australian Lease Extension Agreement should address all the key matters relevant to extending the tenancy and provide a clear, enforceable record of what the parties have agreed.

The original lease details section records the key information about the lease being extended, including the date of the original agreement, the address of the premises, the scheduled end date of the original fixed term, and the names of both parties. This context is essential for understanding the basis on which the extension is made.

The extension type section specifies whether the lease is being extended for a new fixed term (with a defined new end date) or converted to a periodic tenancy (rolling month-to-month or week-to-week). Fixed-term extensions give both parties certainty about the duration of the arrangement. Periodic conversions are more flexible but allow either party to end the tenancy on the minimum statutory notice.

The extension dates section records the commencement date of the extended term (typically the day after the original lease end date) and, for fixed-term extensions, the new end date. The new end date determines the duration of the commitment and the point at which the tenancy will again need to be extended, renewed, or ended.

The rent review section is critical where the rent is changing. The agreement must record the current rent, the new rent, and the date from which the new rent takes effect. Under all Australian residential tenancy acts, the landlord must give the tenant at least 60 days' written notice before a rent increase takes effect, and rent may not increase more than once every 12 months. The Lease Extension Agreement can serve as this notice, provided it is given at least 60 days in advance.

The bond section confirms how the existing bond will be handled. In most cases, the bond already lodged with the state bond authority continues to apply without change. If the rent has increased significantly, a top-up bond may be appropriate, subject to the four-week maximum.

The continuing and varied terms section makes clear that all terms of the original lease continue to apply during the extension period, and specifically records any terms that are being changed — ensuring there is no ambiguity about the full terms of the ongoing arrangement.