Gross vs Net Leases in Australia: The Complete Guide
Understanding the operational allocation of building outgoings and state-based land tax protections.
The Core Difference: Gross vs Net
Gross Leases: The tenant pays a single, all-inclusive rental payment. The landlord is responsible for all outgoings (municipal council rates, strata, insurance).
Net Leases: The tenant pays a lower base rent but also covers a proportionate share of the property's operating outgoings.
The Crucial State-Based Legal Protections
Under retail lease laws in NSW and VIC, landlords are legally prohibited from passing on state land tax to retail tenants, even under a net lease. Landlords must also provide detailed disclosure statements before a retail lease is signed.
Disclaimer: The estimations and rules detailed on this platform do not constitute legal or financial advice. Always verify metrics with a certified property professional, licensed accountant, or qualified commercial lawyer before entering into or executing any lease contract.