How to Break a Lease in Australia Without Getting Ripped Off

New job interstate. Relationship ended. Rent went up and you found somewhere cheaper. Whatever the reason, you need out of your lease and the agent is saying you owe rent until the end of the term plus a stack of fees.

Slow down. Breaking a lease is normal and the rules protect you more than the agent is letting on.

What you can actually be charged

It depends on your state, but the landlord can never just sit back and collect rent from you for months. Here is the general picture:

• New South Wales: For leases signed after March 2020, there is a fixed break fee. 4 weeks’ rent if you leave in the first quarter of the term, 3 weeks in the second, 2 weeks in the third, 1 week in the last quarter. That’s it. No advertising fees on top.
• Victoria: No fixed fee. You pay reasonable costs: rent until a new tenant moves in (the landlord must try to find one quickly), a share of the reletting fee, and reasonable advertising. The landlord must “mitigate,” meaning actively try to re-let.
• Queensland: For agreements started or renewed from 30 September 2024, the reletting cost is capped by how much of the term has run. For a term of 3 years or less, that is 4 weeks’ rent if less than a quarter has passed, then 3, 2 or 1 week’s rent, and the landlord cannot add advertising or other costs on top of it. For older agreements, reasonable costs such as advertising and rent until re-let can still apply. The landlord must take reasonable steps to find a new tenant.
• South Australia, Western Australia, Tasmania: Reasonable costs only, and the landlord must mitigate.
• Northern Territory: For agreements entered into on or after 2 January 2024, everything the landlord can claim (lost rent plus costs such as advertising) is capped at 28 days’ rent if you completed less than half the term, or 14 days’ rent otherwise, and only for losses they can show. For older agreements, reasonable costs apply and the landlord must mitigate.
• Australian Capital Territory: From 10 December 2024, every new fixed-term agreement must include a break lease fee clause. For a fixed term of up to 3 years, it caps what you pay at 6 weeks’ rent in the first half of the term or 4 weeks’ rent in the second half, and the amount is reduced if the property is re-let quickly. For older agreements without the clause, reasonable costs apply and the landlord must mitigate.

The mitigation rule (your best friend)

In every state without a fixed break fee, the landlord has a legal duty to try to re-let the property as soon as possible. They cannot leave it empty for three months and bill you. If they drag their feet, refuse reasonable applicants, or hold out for a much higher rent, the tribunal will cut what you owe.

Ask the agent in writing: when was it advertised? How many inspections? How many applications? Keep the answers.

Things they cannot charge you

• Rent for a period after a new tenant has moved in.
• A “penalty” or “break lease fee” that is not in the Act or your lease.
• Full reletting costs when only part of the lease remained.
• Professional cleaning if you left it reasonably clean.
• Any fee for “processing” your departure.

When you can leave with no cost at all

You may be able to end the lease early without paying anything if:

• The landlord has breached the lease (for example, failed to do repairs) and you give proper notice.
• You are experiencing family or domestic violence (every state has special provisions).
• The property becomes uninhabitable.
• You are moving into aged care or social housing.
• The landlord failed to disclose something they were required to (like a planned sale, in some states).

How to do it properly

1. Give written notice with your intended move-out date.
2. State that you expect the landlord to mitigate their loss by re-letting promptly.
3. Offer to help: allow inspections, keep the place tidy, be flexible with the end date.
4. Ask for a written breakdown of any costs they intend to claim.
5. If the numbers look wrong, dispute them in writing before they touch your bond.

Get it in writing

A break lease is a negotiation. The agent’s opening position is usually the worst case for you. A clear, formal letter that sets out what you will pay, what you won’t, and why, changes the conversation.

Claim Done drafts your Break Lease Letter for $49. Done in about 5 minutes.