Breaking a Lease in Australia: What It Actually Costs (State-by-State)

When you sign a fixed-term lease, you are legally committed to the full term. If you leave before the end date, your landlord is entitled to recover their 'reasonable costs' of re-letting the property — this typically means rent lost until a new tenant moves in, plus agent re-letting fees.

However, your landlord has a duty to mitigate their loss — they must actively try to find a new tenant as soon as possible. They cannot simply leave the property empty and charge you rent for the full remaining term. If they fail to take reasonable steps to re-let, you may be able to reduce what you owe.

New South Wales has the clearest break lease cost structure in the country, using a fixed statutory fee that decreases the further through your lease you are:

These fees apply to leases of 3 years or less entered into after 23 March 2020. For older leases, the actual loss formula (reletting costs + lost rent) still applies.

The statutory break fee covers all re-letting costs — you cannot be charged separately for advertising or agent fees on top of it.

• Less than 25% of the lease has elapsed: 4 weeks rent
• 25% to less than 50% elapsed: 3 weeks rent
• 50% to less than 75% elapsed: 2 weeks rent
• 75% or more elapsed: 1 week rent

Queensland overhauled break lease costs in September 2024 under the Housing Legislation Amendment Act. The new formula caps what a lessor (landlord) can claim:

Before September 2024, QLD tenants could face open-ended claims for the entire remaining lease plus full agent fees. The reform is a significant improvement.

If you find your own replacement tenant — one the landlord reasonably accepts — the reletting fee may be reduced or eliminated. Getting the landlord to take someone you source is not guaranteed but is always worth trying.

• Reletting cost: one week's rent (capped)
• Lost rent: only the rent lost until a new tenant moves in, up to a maximum calculated as the lesser of the remaining lease term or 26 weeks (6 months)

Victoria does not have a fixed break fee schedule. Instead, a renter who breaks a fixed-term lease can be liable for:

Victoria introduced significant renter protections from late 2025 onward. If your rental provider has failed to comply with minimum standards, made a rent increase above CPI, or engaged in any form of retaliatory eviction, you may have grounds to challenge any break lease claim at VCAT via the RDRV pathway first.

The rental provider must make genuine efforts to re-let — posting the property online, accepting reasonable applications. Document this.

• The landlord or agent's reasonable cost of re-advertising the property
• The equivalent of up to one week's rent as a re-letting administration fee (in practice)
• Rent from the date you vacate until either the end of your lease or a new tenant moves in — whichever is sooner

WA: No fixed formula — actual loss formula applies. Landlord must re-let as quickly as possible. Costs typically include one week's rent re-letting fee plus lost rent until new tenant.

SA: Similar to WA — actual reletting costs plus lost rent. The landlord must mitigate.

TAS: Actual costs of re-letting. The Commissioner typically assesses what is 'reasonable'.

NT: Actual costs formula. Landlord must take reasonable steps to re-let.

In all states, if you can find a suitable replacement tenant yourself, many landlords and agents will accept them — eliminating or drastically reducing what you owe. This is almost always worth attempting.

Across every state in Australia, there are circumstances where you can end a fixed-term tenancy early without penalty:

Domestic violence: All states allow immediate termination of a tenancy with no break costs for victims of domestic or family violence. A domestic violence order, court document, or statutory declaration is generally required.

Uninhabitable property: If the property is uninhabitable due to landlord neglect — persistent mould, failure to make urgent repairs, pest infestation — you may be able to end the tenancy by applying to the tribunal.

Landlord breach: If your landlord has seriously breached the tenancy agreement (repeated unlawful entry, failure to maintain the property, harassment), you can apply to the tribunal for a termination order.

Hardship: Some states allow hardship applications where serious personal circumstances (sudden unemployment, critical illness) make continuing the tenancy impossible. The tribunal has discretion to order a reduced or waived break fee.

The single best thing you can do is find your own replacement tenant. Advertise on Flatmates.com.au, Facebook Groups for your area, and Gumtree. Give your landlord or agent a well-qualified applicant to consider.

Also:

• Give as much notice as possible — longer notice means more time for the landlord to re-let before you leave
• Document all communication with your landlord or agent in writing
• If the landlord appears to not be re-letting actively (no ads, refusing reasonable applicants), document this too — it reduces what you can be held liable for
• Use the RenterSay Break Lease Cost Calculator to estimate your exposure before you hand in notice