A lease dispute can quietly threaten a business — your premises, your fit-out and your cash flow are all tied to terms in a document you may have signed years ago. Whether you are a tenant or a landlord, retail or commercial, the rules differ and the deadlines matter. I help you read your real position and resolve disputes over rent, outgoings, repairs, make-good and assignment without letting them swallow the business.
Retail vs commercial leases — the rules differ
The first question in any lease dispute in Victoria is whether the Retail Leases Act 2003 (Vic) applies, because it changes the rules significantly. Retail leases carry tenant protections — a disclosure statement, controls on outgoings, a general right to a minimum five-year term, and a prohibition on passing land tax to the tenant. Non-retail commercial leases are governed mainly by the lease itself and the common law, which makes the drafting of the lease far more decisive.
Knowing which regime governs your lease is the foundation of everything else, and it is not always obvious — some premises fall in or out of the Act in ways that surprise both sides.
Common lease disputes
The disputes I see most are over rent reviews and rent increases, outgoings and what a tenant can be charged for, responsibility for repairs and maintenance, make-good obligations at the end of a term, assignment and subletting when a business is sold, and breach and termination. Many turn on the precise words of the lease read against the Retail Leases Act 2003 (Vic).
The make-good clause in particular catches tenants out at the worst time — the end of the lease, when they are trying to move on — and is well worth understanding before, not after, you sign.
How disputes get resolved: VSBC then VCAT
Retail tenancy disputes in Victoria are generally referred first to the Victorian Small Business Commission (VSBC) for low-cost mediation, which resolves a large share of disputes without a hearing. If mediation does not resolve it, the matter proceeds to the Retail Tenancies List at VCAT. Non-retail commercial disputes may go to VCAT or the courts depending on the lease.
Because a lease dispute sits on top of a working business, my aim is always the commercial one: resolve it at the lowest level, keep the relationship workable where the tenancy continues, and protect the value tied up in the premises.
How I handle a commercial & retail lease disputes matter
- 1Free initial conversation about the lease and the dispute
- 2Advice on whether the Retail Leases Act 2003 (Vic) applies to your lease
- 3A clear read of your real position under the lease and the Act
- 4Representation at Victorian Small Business Commission mediation
- 5Where needed, representation at VCAT or in court
Frequently asked questions
Does the Retail Leases Act apply to my lease?
Whether the Retail Leases Act 2003 (Vic) applies depends on how the premises are used and other criteria, and it matters because the Act gives retail tenants significant protections — a disclosure statement, outgoings controls, a general minimum five-year term and a bar on passing land tax to the tenant. Some premises fall in or out of the Act unexpectedly, so it is worth checking before a dispute escalates.
How are retail lease disputes resolved in Victoria?
Retail lease disputes in Victoria are generally referred first to the Victorian Small Business Commission (VSBC) for low-cost mediation, which resolves many disputes without a hearing. If mediation does not succeed, the matter proceeds to the Retail Tenancies List at VCAT. This staged process keeps most disputes out of expensive court proceedings.
What is a make-good obligation?
A make-good obligation is a lease term requiring the tenant to return the premises to a defined condition at the end of the lease — often removing fit-out and reinstating the original state. In Victoria these clauses are a common and costly source of end-of-lease disputes, which is why they are worth understanding before signing, not after.
Can I assign my lease when I sell my business?
Usually yes, but most commercial and retail leases require the landlord's consent to assign, and the Retail Leases Act 2003 (Vic) sets out a process and grounds for retail leases. Getting the assignment right is essential when selling a business, because a sale often depends on the buyer taking over the premises. I can manage the assignment and landlord consent for you.
Reviewed by Elisa Rothschild BA/LLB — Principal Lawyer, Fogarty Oliver Rothschild. Admitted to legal practice in Victoria. Last reviewed 2026-06-21.
This page is general legal information about commercial & retail lease disputes in Victoria, Australia. It is not legal advice for your specific situation. For advice on your matter, book a free initial consultation.