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ARTICLE · 30 JULY 2026

Retail leasing law changes for NSW - key impacts for councils

Proposed reforms to NSW retail leasing law could significantly expand what qualifies as a retail lease, potentially capturing council arrangements like café kiosks, community centre shops, and ancillary areas such as car parks and signage rights. Understanding these changes is crucial for councils to avoid unintended compliance obligations and maintain flexibility in their property arrangements.

AustraliaReal Estate and Construction

Retail leasing is not typically a primaryfocus for councils. However, most councilsdeal with it in some form -cafés in parks, kiosks, small shops in civic buildings and mixed‑use community spaces.

Some of these arrangements may fall within retail leasing laws, depending on how they are structured and used. 

With NSW retail leasing law proposing to undergo its most significant reform in decades, that risk becomes more relevant - making this something councils should keep on the radar.

What’s proposed to change

The Retail Leases Amendment (Review) Bill 2025 (NSW) is the next stage of reform to the Retail Leases Act 1994 (NSW). It has been introduced to Parliament but is not yet in force.

Although much of the reform is framed as procedural and structural, there are two significant shifts relevant to how councils approach retail leasing in practice.

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