Quick answer
No Australian state sets a standard commercial lease bond. It's a number written into your lease, often a set sum or a few months' rent. Victoria's Small Business Commission says it can be one or more months' rent and is negotiated, not regulated. What changes by state is who holds the money and how fast you get it back, so work out the cash call before you sign.
Key points
- The amount is a lease term, not a legal standard. Victoria and Queensland regulators both say it isn't regulated, so it can be negotiated.
- Check what the bond is a multiple of: base rent, rent plus outgoings, or gross rent including GST. On the same lease that can move the number by thousands.
- NSW retail cash bonds sit in the government's Retail Bonds Scheme. In Victoria the landlord holds the deposit in an interest-bearing account. In Queensland the lease decides.
- Refund timing differs: NSW claims are mostly paid within 14 days of a complete claim; Victoria requires return within 30 days of the lease ending; Queensland has no legislated timeframe.
- Bond money leaves your account before the first sale. Plan where it comes from while you're still negotiating.
The agent has sent the heads of agreement. Rent, term, outgoings, and then a line you skimmed: security — three months. Three months of what, exactly?
How much is a commercial lease bond? No state sets a standard figure. Victoria’s Small Business Commission says a retail security deposit “can be equal to one or more months’ rent” and isn’t regulated (VSBC). Queensland’s commissioner says the sum “is not regulated by legislation” (QSBC). So it’s a lease term, and your job is to turn it into a dollar figure and a date before you sign.
This guide covers the amount, the state differences and the refund. How long a bank guarantee takes to issue is in a separate guide, so we won’t repeat that here.
What’s a normal commercial lease bond?
Normal is a number the landlord is comfortable with and you’ve agreed to. In practice leases land on either a fixed dollar sum or a set number of months’ rent, and “a few months” is the usual conversation. Because the regulators say it’s negotiable, treat the first figure as an opening offer.
What pushes it up or down:
- Your trading history. A business with two years of financials has more to bargain with than a start-up.
- Who’s signing. A director guarantee or personal guarantee can reduce the cash the landlord asks for.
- The landlord’s alternatives. If a bank guarantee is accepted, the landlord has less reason to insist on cash in hand.
- The fit-out. A tenant spending heavily on a landlord-approved fit-out is a stronger negotiator.
What is the bond a multiple of? The maths most people skip
“Three months’ rent” can mean three different numbers. Here’s one lease, three readings.
Illustrative example only. Base rent is $6,000 a month, estimated outgoings are $900 a month, and GST is 10%.
| What the bond is based on | Monthly figure | Three months | Six months |
|---|---|---|---|
| Base rent only | $6,000 | $18,000 | $36,000 |
| Rent plus outgoings | $6,900 | $20,700 | $41,400 |
| Gross, including GST | $7,590 | $22,770 | $45,540 |
Same lease, same “three months”, and the cash call differs by $4,770 depending on the definition. Ask for the dollar amount in writing and check the clause. If the lease says “rent” without defining it, ask the agent whether outgoings and GST are in or out.
Also check whether the bond is fixed or re-sets at each rent review. A bond tied to current rent can need topping up when rent rises. NSW’s retail bonds page notes landlords and agents can request top-ups (NSW Government).
Who holds the money? NSW, Victoria and Queensland compared
The rules depend on the state and on whether the premises are a retail shop. The three below are the ones with clear official guidance.
| NSW (retail shop leases) | Victoria (retail leases) | Queensland | |
|---|---|---|---|
| Amount | Set in the lease | Can be one or more months’ rent; negotiated, not regulated | Not regulated; set in the lease |
| Who holds a cash bond | Government’s Retail Bonds Scheme | Landlord or agent, in an interest-bearing account | Agreed between the parties: landlord or a third party |
| Return timing | Claim online or by form; others have 14 days to accept or dispute; most claims paid within 14 days of receipt | Within 30 days of the lease ending, with interest, if you’ve met your obligations | No timeframe in legislation; the lease governs |
| Who to call in a dispute | NSW Small Business Commissioner / Fair Trading | Victorian Small Business Commission | QSBC mediation, then QCAT for retail shop leases |
Two warnings. First, these are retail rules. For an office, warehouse or industrial lease, the lease is usually the main rulebook and the bond may simply sit with the landlord. Second, I’ve only quoted what the regulators publish. For South Australia, Western Australia, Tasmania and the territories, check your state’s small business commissioner or regulator before you pay.
When does the cash actually leave your account?
A bond isn’t a cost you meet from trading. It’s due before the keys, alongside advance rent, fit-out deposits and the first insurance premium. Work out the whole upfront stack, not just the bond:
- Bond or guarantee cover (the number above)
- Advance rent, often the first month
- Fit-out and signage deposits
- Insurance and connection fees
Then work back from the handover date. A cash bond can be paid the day the money’s available, but a guarantee needs its term deposit funded first. The two-week window page shows what usually fits in that time, and the deadline planner lets you put your own dates in.
If the cash call is bigger than the cash you’re comfortable parting with, decide that now, not on handover day. Property-secured funding of $20k to $250k is possible the same day, and up to $5m is possible within 24–48 hours. Same-day funding is possible for smaller unsecured amounts. You can check your options in about a minute, or ring 1300 752 188 with the lease clause in front of you.
How do you get the bond back?
Bonds are lost through paperwork more often than bad faith. Here’s how to protect yours.
- Keep proof of payment and the lodgement. If you paid by transfer, keep the receipt and the lease clause. Queensland’s commissioner says if a bond is unaccounted for after a sale, assignment or business transfer, you should keep evidence of the original payment and any transfers.
- Photograph the premises at handover and at exit. Make-good disputes decide most deductions. Queensland’s commissioner says unpaid rent or incomplete make good can let a landlord keep a cash bond or call on a guarantee.
- Claim in writing, straight away. In NSW, lodge the claim online or on the retail bond money form. Others have 14 days to accept or dispute it, and most claims are paid within 14 days of receipt. If you’ve heard nothing 14 days after a complete claim, contact Rental Bonds.
- Diarise the Victorian deadline. A retail landlord must return the deposit and interest within 30 days of the lease ending if you’ve met your obligations. If they haven’t, the VSBC can help.
- Sale of the business? Work out whether the bond transfers to the buyer or is refunded to you before settlement.
A refund usually arrives after you’ve already paid the next lease’s bond, so don’t count it as available cash for the next site.
How to negotiate the bond down
You’re most likely to win with a specific, reasoned ask.
- Ask for a lower multiple of base rent, with outgoings and GST excluded.
- Offer a bank guarantee instead of cash, if the landlord’s happy with it. See what holds up a guarantee.
- Ask for a step-down after 12 months of on-time rent.
- Offer a personal or director guarantee in place of part of the cash.
- Get every change into the lease. A promise in an email isn’t a lease term, so your solicitor should check it before signing.
Whoever signs for the business needs to be clear on the personal exposure, so see who needs to sign. The lease bond situation page covers funding the security once you know the number.
What if the landlord won’t move on the amount?
Then compare the total cost of each way of paying it. A cash bond is cash you can’t use. A guarantee leaves the money in a term deposit in your name but adds bank fees and setup time. Borrowed cover costs money for as long as the lease runs. Put the three side by side against your expected first-year cash flow, and ask your accountant which fits. Sometimes the cheapest answer is a smaller bond and a slightly higher rent, or the reverse. If the landlord is firm, at least you’ll know the real number early enough to fund it without a scramble.
Got the number? Let’s see how to fund it
The bond is the unglamorous part of a new site. It’s tied-up cash that earns nothing, due on a date the landlord sets, right when fit-out costs hit. The sensible time to work out where it comes from is while you’re still reading the lease.
That’s the kind of date we work to every day. Enquiring takes about 60 seconds and there’s no credit check at that stage, so asking won’t touch your credit file. We don’t send your details to a pile of lenders. One team reads your enquiry, and a real person calls you to talk through the lease, the bond amount and the handover date. If you want to have a look at your options, please fill the form in accurately: the bond or guarantee amount, the keys date and any property you could offer as security. With that, we can aim to match you with the right option first time.
Prefer to talk it through? Ring 1300 752 188.
Frequently asked questions
How much bond do you pay on a commercial lease?
There's no set amount. Victoria's Small Business Commission says a retail security deposit can be equal to one or more months' rent and is negotiated. The Queensland Small Business Commissioner says the amount isn't regulated by legislation. The number is whatever your lease says, so read the security clause and the definition it uses for rent.
Is a commercial lease bond calculated on rent including GST and outgoings?
It depends on the lease wording. Some leases base the bond on annual base rent divided by twelve, others on rent plus outgoings, and some on the gross amount including GST. None of the state regulators sets the formula, so ask the agent to put the dollar figure in writing before you sign.
Who holds a commercial lease bond?
In NSW, cash bonds for retail shop leases are held in the government's Retail Bonds Scheme. In Victoria, the landlord or agent must hold a retail security deposit in an interest-bearing account. In Queensland, the tenant and landlord can agree whether the landlord or a third party holds it. For office and industrial leases the lease itself is the main rulebook.
How long does it take to get a commercial lease bond back?
In NSW, other parties have 14 days to accept or dispute a claim and most claims are paid within 14 days of receipt. In Victoria, a retail landlord must return the deposit and interest within 30 days of the lease ending if you've met your obligations. Queensland says there's no timeframe in legislation, so the lease sets it.
Can I pay a bank guarantee instead of a cash bond?
Often yes, if the lease allows it. A bank guarantee leaves the cash in a term deposit in your name instead of going to the landlord, but the bank charges fees and takes longer to set up. Check the lease clause and ask the landlord in writing which forms of security they'll accept.
Can I negotiate a lower commercial lease bond?
Yes. Victoria's regulator says the amount is negotiated, and Queensland's says it isn't regulated. Common asks are a lower number of months, a bank guarantee instead of cash, or a step-down after a year of on-time rent. Get any agreed change into the lease before you sign, not into an email.
What can a landlord deduct from my bond?
That depends on the lease and the state. Queensland's commissioner says a landlord may keep a cash bond or call on a guarantee for things like unpaid rent or incomplete make good, depending on the lease terms. In NSW, you're entitled to your retail bond back unless you owe money to the landlord or damaged the property.