Make Good Dispute Resolution: What Happens When Landlord and Tenant Disagree
Make good disputes are common in Australian commercial leasing. Here is how they typically get resolved, from mediation through to tribunal.
Disagreement over the condition a tenant must leave the premises in is one of the most common disputes in Australian commercial leasing. Vague phrases like 'original condition' or 'reasonable wear and tear excepted' are frequent sources of conflict when there is no clear evidence of the starting condition.
Retail leases have a mandated pathway
For retail leases specifically, most Australian states require mediation before a dispute can reach a tribunal. In NSW, tenants generally attempt mediation through the NSW Small Business Commissioner before applying to NCAT, which can determine retail lease disputes up to $750,000 for leases signed on or after 1 July 2017. In Victoria, retail lease disputes go through the Victorian Small Business Commission before VCAT. In Queensland, unresolved disputes proceed to QCAT, which also has a $750,000 monetary limit for retail shop lease disputes.
Standard commercial (non-retail) leases
Pure commercial leases that fall outside retail leases legislation generally do not have the same mandated tribunal pathway. Disputes are more likely to go through private mediation or the courts, so the specific process depends on your lease terms and which state you are in.
How to avoid needing any of this
- Get an entry condition or dilapidation report at the start of your lease.
- Get an independent quote before you dispute a landlord's claimed scope, so your position is backed by a real number.
- Try direct negotiation and mediation first; tribunal processes take time and cost money on both sides.
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Frequently asked questions
Where do retail lease make good disputes get resolved in NSW?
Typically through mediation with the NSW Small Business Commissioner first, then NCAT if unresolved, which can hear retail lease disputes up to $750,000 for leases signed on or after 1 July 2017.
Do standard commercial leases go to NCAT or VCAT for make good disputes?
Generally not, unless the lease falls under retail leases legislation. Standard commercial (non-retail) lease disputes are more commonly resolved through private mediation or the courts.
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Sources: NSW Civil and Administrative Tribunal, Retail leases , VCAT, Retail and commercial leases , QCAT, Retail shop lease disputes