ACT
See section 38. Landlord must not ask for or accept key money in connection with the renewal or extension of a lease. Any money so received is a debt due and payable by the landlord to the tenant.
No specific provision concerning costs of lease extensions, however an extension or renewal would be considered to be the grant of a lease and therefore subject to section 23 where each party must bear its own costs of preparing the lease.
NSW
See section 45. The landlord is prohibited from obtaining key money or lease preparation expenses in connection with the renewal or extension of a lease and any provision to the contrary is void.
The landlord, may however, recover from the tenant reasonable lease preparation expenses incurred in connection with the tenant requesting amendments to a proposed renewal or extension lease.
NT
See section 61. Landlord must not seek or accept key money in connection with the renewal or extension of a retail shop lease. Any money so received is recoverable by the tenant from the landlord as a debt.
Maximum penalty: 100 penalty units.
This does not preclude a landlord from requiring payment by the tenant of reasonable legal expenses in connection with the renewal; or receiving payment of rent in advance; or securing performance of the tenant's obligations under the renewed or extended lease (via bond or security deposit); or seeking and accepting payment for the grant of a franchise in connection with the renewal or extension of the lease.
QLD
Key money - See section 39 and Schedule dictionary.
Payment of key money or amount for tenant's goodwill is prohibited.
Costs - See sections 24 and 48.
Tenant is not liable for legal costs for preparing, renewing or extending a lease or costs of obtaining lessor's mortgagee's consent or the costs of the lessor complying with the Act. Costs of survey, registration fees and legal costs for a variation (after the lease has been entered into) or consent to sublease or licence may be recovered.
The prospective landlord may recover its reasonable legal or other expenses incurred in the preparation of the final lease from a prospective tenant if:
- the prospective landlord and tenant agree to the terms of the proposed lease;
- the prospective tenant gives the prospective landlord a written notice to prepare the final lease and that lease is prepared;
- the prospective tenant does not sign the final lease; and
- the prospective landlord gives the prospective tenant a copy of the invoice for expenses for the preparation of the final lease (see section 48(3)).
SA
See section 20L. Similar to NSW but no prohibition on recovering renewal lease preparation expenses.
TAS
Payment of key money in relation to the granting, renewal, extension or assignment of a lease is prohibited, and is void (see Regulation 9 and the definition of "Key Money" in Regulation 1).<
The Landlord may, however, recover from the tenant the costs of any alterations required by the tenant to the lease (see Regulation 8).
VIC
The key money prohibition in section 23 above applies in relation to the renewal of a lease and the granting of an option for the renewal of a lease.
No specific provision concerning the costs of lease extensions or renewals, however an extension or renewal would be considered to be the grant of a lease and therefore section 51 refers to and the landlord cannot recover expenses relating to:
- negotiation, preparation or execution of the lease;
- obtaining the consent of a mortgagee to the lease; or
- the landlord's compliance with the Act.
WA
No specific provision concerning lease extensions.
The key money prohibition in section 9 above in relation to "leases" would apply equally to extensions of leases.
A tenant will not be liable under section 14B for legal costs for preparing, renewing or extending a lease.
Definitions and currency