Quick answer: Retail premises definitions differ by state, but generally cover shops and services used predominantly to sell goods or provide services directly to the public. All 8 Australian states and territories have their own retail leases legislation, such as the Retail Leases Act 1994 in NSW, often using a 50%-plus predominant-use test. Shopping centre premises are usually automatically classified as retail.
In Australia, retail premises are generally defined as commercial spaces used wholly or predominantly for the sale or hire of goods, or the provision of services directly to the public – like shops, salons, cafés, or service providers – and are typically covered by special retail lease laws to protect tenants.
While each state or territory has its nuances, this core definition remains consistent.
This guide will provide state by state information and links to the appropriate legislation so that you can determine whether you need a retail or commercial lease for your premises.
New South Wales (NSW)
Definition: Section 3 defines a “retail shop” as premises that means premises that—
(a) are used, or proposed to be used, wholly or predominantly for the carrying on of one or more of the businesses prescribed for the purposes of this paragraph (whether or not in a retail shopping centre), or
(b) are used, or proposed to be used, for the carrying on of any business (whether or not a business prescribed for the purposes of paragraph (a)) in a retail shopping centre.
Detailed List of Retail Shop Businesses in NSW
You can refer to this list prescribed in Schedule 1 of the Retail Leases Regulation 2022, which outlines the types of retail businesses in NSW that require a retail lease.
NSW Retail Leasing Kit – Download Now
Queensland (QLD)
Act: Retail Shop Leases Act 1994
Definition: Section 5B defines a Retail Shop as premises that are—
(a) situated in a retail shopping centre; or
(b) used wholly or predominantly for the carrying on of a
retail business.
Detailed List of Retail Business
You can refer to this list prescribed in Schedule 1 of the Retail Shop Leases Regulation 2016, which outlines the types of retail businesses in QLD that require a retail lease.
QLD Retail Leasing Kit – Download Now
Victoria (VIC)
Definition: Section 4 defines “retail premises” as premises not including any area intended for use as a residence, that under the terms of the lease relating to the premises are used, or are to be used, wholly or predominantly for—(a) the sale or hire of goods by retail or the retail provision of services; or
(b) the carrying on of a specified business or a specified kind of business that the Minister determines under section 5 is a business to which this paragraph applies.
VIC Retail Leasing Kit – Download Now
South Australia (SA)
Act: Retail and Commercial Leases Act 1995
Definition: Section 3 defines “retail shop” as business premises –
(i) at which goods are sold to the public by retail; or
(ii) at which services are provided to the public, or to which the public is
invited to negotiate for the supply of services; or
(b) business premises classified by regulation as premises to which this Act
applies, but does not include business premises of a class excluded by regulation from the ambit of this definition;
South Australian Retail Leasing Kit – Download Now
Western Australia (WA)
Act: Commercial Tenancy (Retail Shops) Agreements Act 1985
Definition: Retail shop means
(a) any premises situated in a retail shopping centre that are used wholly or predominantly for the carrying on of a
business; or
(b) any premises not situated in a retail shopping centre that
are used wholly or predominantly for the carrying on of
a retail business, but does not include any premises excluded by regulation;
Section 3a provides a more detailed list of specified businesses.
West Australia Retail Leasing Kit
Tasmania (TAS)
Definition: Retail Premises means premises, other than excluded premises, that are used, or proposed to be used –
(a) wholly or predominantly for the carrying on of any one or more of the businesses, or class of businesses, prescribed for the
purposes of this definition (whether or not that business, or class of businesses, is carried on in a retail shopping centre); or
(b) for the carrying on of any business in a retail shopping centre;
Australian Capital Territory (ACT)
- Act: Leases (Commercial and Retail) Act 2001
- Definition: Section 7 defines a premises as a “retail premises” if:
(a) the permitted use of the premises under the lease or proposed
lease is for retail business; or
(b) if there is nothing in the lease about the use the premises are to
be put to – a retail business may be carried on on the premises
under the lease granted under the territory lease for land that
includes the premises.
Northern Territory (NT)
Act: Business Tenancies (Fair Dealings) Act 2003
Definition: Section 5 defines “retail shop lease” premises that are used wholly or predominantly for:
Northern Territory Retail Leasing Kit
Common Elements for the definition of Retail Premises Across all Australian Jurisdictions
Despite regional differences, several key elements are consistent:
- Purpose-Based Use: The primary use of the premises must be for retail activities – selling or hiring goods, or providing services directly to the public.
- Predominant Use: Many Acts specify that the premises must be used “wholly or predominantly” for retail purposes, often interpreted as more than 50% of the activity.
- Exclusions: Certain premises are excluded based on factors like size (e.g., floor area exceeding a specific threshold), type of business, or the nature of the tenant (e.g., government bodies, listed companies).
- Shopping Centres: Premises located within shopping centres are often automatically classified as retail premises, regardless of the specific business conducted.
While each Australian state and territory has its own legislation defining “retail premises,” the overarching concept remains consistent: commercial spaces primarily used for retail activities directed at the public.
For detailed information and specific legal interpretations, it’s advisable to consult the respective legislation or seek legal advice tailored to your jurisdiction.
Need a Retail Lease Agreement? We’ve Got You Covered.
If you’re leasing out a shop, salon, or other retail space, our Retail Lease Agreement Kits can help you get it right without the cost or delay of starting from scratch with a lawyer.
Each kit is:
- Compliant with your state or territory’s Retail Leases Act
- Written in plain English so it’s easy to understand and complete
- Delivered instantly in Microsoft Word format, so you can customise it to suit your needs
- Backed by legal guidance options if you need extra peace of mind
Whether you’re a landlord, property manager or small business owner, our Retail Lease Kits are designed to protect your interests and save you time and money.