What does breaking a lease mean?
Breaking a lease means ending a fixed-term tenancy before the agreed end date. Unless there is a specific legal ground that exempts you from liability (such as a hardship provision), you will generally owe the landlord compensation for the loss they suffer as a result of your early departure.
What you may owe
When you break a lease, the landlord can typically claim:
The landlord has a legal duty to mitigate their loss. This means they must actively try to find a replacement tenant as soon as possible. They cannot simply leave the property empty and charge you rent for the entire remaining term.
- •Re-letting fees (the agent's cost of finding a new tenant)
- •Advertising costs
- •Rent for the period the property is vacant and untenanted (up to the end of your original lease term)
- •Any 'break fee' specified in the lease (NSWand QLD leases commonly include a break fee schedule)
NSW — break fees
In NSW, leases signed after 23 March 2020 are subject to a prescribed break fee schedule under the Residential Tenancies Act 2010. The break fee is calculated based on how far into the fixed term you are when you vacate:
The NSW break fee is a cap — the landlord cannot charge more than this amount. It covers all re-letting fees, advertising, and compensation. If the landlord finds a new tenant quickly, the fee still applies (it is not reduced).
| Proportion of lease remaining | Break fee |
|---|---|
| More than 75% | 4 weeks rent |
| 50–75% | 3 weeks rent |
| 25–50% | 2 weeks rent |
| Less than 25% | 1 week's rent |
VIC — no statutory break fee
Victoria does not have a prescribed break fee. Instead, the landlord is entitled to claim actual losses — vacant rent plus re-letting costs — up to the end of the original lease. However, they must demonstrate these losses and actively mitigate by re-letting as quickly as possible.
QLD — break lease provisions
In Queensland, tenants can break a fixed-term lease but must give at least 2 weeks' notice. The landlord can claim re-letting costs including advertising and the equivalent of one week's rent as a reletting fee, plus any rent for vacancy period (up to the end of the term). Unlike NSW, there is no simple prescribed break fee table.
When you may have reduced or no liability
In certain situations, you may be able to end a fixed-term lease early without significant financial penalty:
- •Domestic violence — all states have provisions allowing immediate exit without penalty for DV victims (with supporting evidence)
- •Severe hardship — tribunal can terminate a lease early on hardship grounds in all states
- •Property not in habitable condition — if the property fails to meet minimum standards
- •Landlord breach — if the landlord has fundamentally breached the agreement (e.g., repeated unlawful entry, failure to maintain the property)
- •Mutual agreement — if you can negotiate an exit with the landlord, ideally in writing
Practical steps when breaking a lease
If you need to break your lease, follow this process to minimise your liability:
- •Notify the landlord or agent as soon as you know you need to vacate — in writing
- •Offer to help find a replacement tenant (you're allowed to bring prospective tenants through)
- •Leave the property in excellent condition to maximise the chance of a quick re-let
- •Keep records of all communication with the landlord and agent
- •Ask for a written breakdown of any costs they intend to claim before agreeing to pay
- •If costs seem excessive, compare against actual advertising costs and market re-letting fees
This guide provides general information based on current Australian tenancy legislation. It is not legal advice. Always verify with the relevant state tenancy authority or a qualified professional for your specific situation. Last verified: January 2026.