Yes. You can legally break a lease early in Australia. However, unless you qualify under recognised legal grounds (such as domestic violence, severe hardship, landlord breach, or an uninhabitable property), you will usually need to pay reasonable break costs. The amount depends on your state or territory and how much of your lease has expired.
It’s always best to avoid breaking your tenancy agreement, but sometimes circumstances arise where there is no other option.
If you need to leave early, you can do so, however, bear in mind you may be required to pay ‘lease break fees’, which can be expensive.
There are some exemptions that apply if a tenant is experiencing hardship. Depending on the situation, you may qualify for a legally recognised reason that allows you to leave without paying break fees. And if you don’t meet those criteria, you can still end your lease on your own terms, usually with some costs involved.
In this guide, we’ll walk you through everything you need to know: when break fees apply, when they can be reduced or waived, the key legal terms to understand and the practical steps to make the process as smooth and stress-free as possible.
Breaking a lease early means you are leaving your tenancy agreement before the agreed-upon length of tenancy.
Since a tenancy agreement is legally binding, ending it early may trigger compensation unless an exemption applies.
You may need to pay compensation. This can include rent until a new tenant is found, advertising costs, reletting fees, or a capped break fee (in NSW and ACT). However, if you qualify under legally recognised grounds, you can terminate without penalty.
Across all Australian states and territories, tenants who have a legally recognised ground for ending a lease early can terminate without penalty.
If you have decided to end your tenancy agreement, the following steps can help you to avoid penalty:
If you decide to end your tenancy agreement early without a legally accepted reason, break fees and costs will apply. The amount you need to pay depends on the tenancy laws in your state or territory.
In NSW, the rules are very clear because statutory break fees apply to fixed-term agreements of three years or less. The set fees are:
For fixed-term agreements longer than three years, the break fee is not fixed. Instead, the landlord or agent can negotiate an appropriate compensation amount, which may include loss of rent, advertising costs, and reletting fees.
The ACT follows a similar model, also applying capped break fees based on how much of the lease has expired.
For all other Australian states and territories, break lease costs do not follow fixed percentages. Instead, tenants may be responsible for reasonable expenses, which can include:
These costs only apply if the tenant does not meet the criteria for a fee-free, legally approved lease termination. So it is important that tenants carefully coordinate with their landlord.
| State type | How fees work | Example |
| NSW and ACT (Capped model) | Fixed statutory percentage | 4 weeks' rent if less than 25% expired |
| Other states | Compensation model | Rent + advertising + reletting fees |
In NSW and ACT, break fees are capped based on how much of the lease has expired. In other states, landlords can claim reasonable losses until a new tenant is secured.
For most states (outside NSW & ACT), tenants may be responsible for:
rent until a new tenant is found
advertising costs
reletting or leasing fees (pro-rated)
other reasonable losses
Landlords must mitigate loss, meaning they must actively attempt to re-let the property.
If you have decided to end your tenancy agreement, the following steps can help you navigate a seamless and less stressful transition:
Check break clauses and notice requirements.
Confirm whether hardship, violence or landlord breach applies.
Submit a Notice to Terminate Tenancy Agreement.
Step 4. Confirm costs in writingRequest a breakdown of all fees.
Return keys and leave the property in original condition.
Provide written notice, confirm your legal grounds (if any), cooperate with re-letting efforts, and document everything.
Ability to relocate
Exit unsafe or unsuitable housing
Financial relief in hardship cases
Financial penalties
Potential rental history note
Administrative stress
Breaking a lease is legal, but rarely cost-free unless specific grounds apply.
Breaking a lease may appear on your rental history.
However:
It rarely affects your credit score
It is unlikely to impact future rentals if handled responsibly
Usually no, unless unpaid rent leads to tribunal action or debt recovery.
Sometimes, ending a lease early is simply unavoidable. In some situations, you may be able to leave without paying penalties, particularly if you can demonstrate genuine hardship. In other cases, breaking the lease may involve certain fees, depending on your agreement and your landlord’s obligations. And while early termination can appear on your rental history, it rarely impacts your credit score when you’ve maintained a solid track record as a tenant.
If you’re feeling uncertain or overwhelmed by the process, our team is here to help. We can guide you through your options, assist with negotiations and support you in managing a smooth, stress-free transition as you move on to your next home.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.