ACT Commercial Property Laws: The Leases (Commercial and Retail) Act Guide

Commercial and retail leasing in the Australian Capital Territory (ACT) is primarily governed by the Leases (Commercial and Retail) Act 2001. This legislation is designed to balance the power dynamic between landlords and commercial tenants, focusing heavily on transparency, mandatory disclosures, and formalized dispute resolution.

Disclaimer: This guide provides general legal information for educational purposes only. Commercial real estate transactions are complex. Always consult an ACT-qualified commercial solicitor. Information last verified: March 2026.

The Leases (Commercial and Retail) Act 2001

The Act applies to most premises used for commercial or retail purposes in the ACT, though there are specific definitions and exemptions (e.g., leases to large multinational corporations or very short-term leases may be excluded from some provisions).

The Act dictates everything from how a lease is negotiated to how disputes are handled in the ACT Magistrates Court, which holds primary jurisdiction over commercial leasing matters in the territory.

The Mandatory Disclosure Statement

The centerpiece of ACT commercial leasing compliance is the Disclosure Statement. This is a statutory form that a landlord must provide to a prospective tenant.

• Timeline: The landlord must provide the statement at least 14 days before the lease is entered into.
• Execution: It must be signed by both parties at least 7 days before the lease is finalized.
• Content: It details the essential terms of the lease, including rent, outgoings (service charges/taxes), utility arrangements, and any required fit-out works.
• Legal Advice: The statement must explicitly advise the tenant to seek independent legal advice.

If a landlord fails to provide a compliant Disclosure Statement within the correct timeframe, the tenant gains the powerful right to terminate the lease by providing 14 days' written notice within the first five months of the tenancy.

For more detail, see our Commercial Required Disclosures guide.

Eviction and Dispute Resolution

The ACT emphasizes negotiation over aggressive action. Part 14 of the Act outlines strict dispute resolution procedures. If a landlord wishes to evict a tenant for non-payment of rent, they must generally follow strict statutory notice periods and, if the tenant disputes the breach, apply to the Magistrates Court for a resolution.

For more detail, see our Commercial Eviction Process guide.

Security Deposits and Rent Reviews

Unlike the residential sector, commercial security deposits (bank guarantees or cash bonds) have no strict statutory caps under the Act. They are negotiated between the parties and defined in the lease.

Similarly, rent reviews are governed by the contract. However, in the retail sector, generic "upward-only" rent reviews are often restricted in favour of fixed percentages or CPI indexing to protect small businesses.

Explore more ACT commercial compliance topics:

• Commercial Security Deposits
• Commercial Eviction Process
• Commercial Required Disclosures
• Commercial Rent Increases
• Commercial Lease Requirements
• Commercial Maintenance Obligations
• Commercial Late Fees