South Australia Commercial Rent Increase Laws

Commercial rent increases in South Australia are governed by the specific terms of the lease agreement, supplemented by the protections in the Retail and Commercial Leases Act 1995 for qualifying retail shop leases.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed solicitor in South Australia for advice specific to your situation. Information last verified: March 2026.

How Commercial Rent Is Reviewed

Unlike residential tenancies (which are now capped at one increase per 12 months), commercial leases typically contain detailed rent review clauses that dictate exactly when and how the rent will be adjusted throughout the lease term.

Common rent review mechanisms in SA commercial leases include:

1. CPI (Consumer Price Index) Reviews

Rent is adjusted annually based on changes in the Consumer Price Index for Adelaide. This provides a predictable, inflation-linked increase for both parties.

2. Fixed Percentage Increases

A pre-agreed annual increase (e.g., 3% per annum) is applied on the anniversary of the lease commencement.

3. Market Rent Reviews

At specified intervals (commonly every 3-5 years), the rent is reset to reflect the current market rate for comparable premises. If the landlord and tenant cannot agree on the new rent, either party can request an independent valuation.

4. Turnover Rent

Common in retail shopping centres, the tenant pays a base rent plus a percentage of their gross annual sales turnover above a specified threshold.

Notice Period: 60 Days

Regardless of the review mechanism, landlords must generally provide at least 60 days' written notice of any rent increase under the Act.

"Excessive Increase" Challenge

If a tenant believes a rent increase is excessive, they can apply to SACAT within 90 days to challenge it. SACAT considers:

• Rent for comparable premises in the area.
• The condition and age of the premises.
• Whether the increase is disproportionate to the previous rent.
• Any other relevant factors.

Ratchet Clauses Prohibited

The Act prohibits "ratchet clauses" in retail shop leases. A ratchet clause is one that says rent can only go up at a market review—never down. If a market review reveals the current market rent is lower than what the tenant is paying, the rent must be reduced accordingly.

Best Practices for SA Commercial Landlords

• Engage Accredited Valuers: For market rent reviews, always use a certified property valuer registered in SA. Their independent valuation will be the key evidence if the review is disputed at SACAT.
• Track Review Dates: Missing a rent review date can mean forgoing a year or more of additional rental income. Use property management software to track these critical deadlines.

How Landager Can Help

Landager tracks all rent review dates across your SA commercial portfolio and sends automated alerts when a CPI, percentage, or market review is due. Input your lease parameters, and the system will automatically calculate CPI-based increases using the latest Adelaide index data.

Back to South Australia Commercial Laws Overview.