Work out the maximum rental bond a landlord can ask for in NSW, Victoria, Queensland, WA, SA, Tasmania or the ACT from the weekly rent. Check whether the bond you were asked to pay is over the limit.
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Break Lease Costs in Australia
Breaking a fixed-term lease before its end date can be expensive. The costs are not uniform across Australia; each state and territory has its own regulations. This calculator helps you estimate your potential liability based on where you live and your lease details.
How Break Lease Costs Are Calculated
There are two main approaches:
- Fixed Break Fee (NSW): In New South Wales, the law specifies a break fee based on how much of your fixed term has passed when you leave. It is a set number of weeks' rent: 4 weeks if less than 25% of the lease is complete, 3 weeks if less than 50%, 2 weeks if less than 75%, and 1 week thereafter.
- Compensation for Loss (Other States): In Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory, you are generally liable to compensate the landlord for their financial loss. This primarily includes rent for the period the property remains empty after you leave (until it is re-let or the lease ends, whichever is first) plus reasonable costs like advertising and re-letting fees. Crucially, the landlord must take reasonable steps to find a new tenant to minimise their loss.
Example Calculation
Consider a tenant in Queensland with a weekly rent of $500, a lease from 1 February 2026 to 31 January 2027. They plan to vacate on 1 November 2026. The remaining lease period is about 92 days. If the landlord charges a $350 re-letting fee, the estimated cost is calculated as follows:
- Rent liability: ($500 / 7 days) * 92 days = ~$6,571.43
- Plus re-letting fee: $350
- Total Estimated Cost: $6,921.43
This is a maximum potential liability. If the landlord finds a new tenant to move in two weeks later, you would only owe rent for those two weeks plus the re-letting fee.
Frequently Asked Questions
Can I negotiate the break lease costs?
Yes, you can always try to negotiate with your landlord or agent. They may agree to a lower amount, especially if you help find a suitable replacement tenant.
What if I break the lease due to hardship or domestic violence?
Special rules and exemptions may apply. Contact your state's tenancy authority immediately for advice in these situations.
Does my bond cover break lease costs?
No. Your bond (security deposit) is for different purposes, like damage or cleaning. Break lease costs are a separate debt you may owe to the landlord.
How do I formally give notice to break my lease?
You must provide written notice. Using a formal notice document ensures you include all required information and can prove you gave notice.
Next Steps: Providing Formal Notice
Once you understand the potential costs, if you decide to proceed, you must give your landlord or agent formal written notice of your intention to end the tenancy. A Tenant's Letter Giving Notice to End Tenancy is designed for this purpose. It formally communicates your vacate date and helps ensure you comply with procedural requirements.