Outgoings Reconciliation Calculator for NSW Commercial Leases

Most commercial landlords in NSW miss thousands in recoverable outgoings every year. Run our free reconciliation calculator and find out exactly what your tenant owes.

Common questions

Outgoings reconciliationFAQ

What are recoverable outgoings in NSW commercial leases?+

Recoverable outgoings are the operating costs of a property that a landlord can pass on to tenants under the lease. Common items include council rates, water rates, building insurance, land tax (in non-retail leases), cleaning, security, repairs and maintenance, and management fees. The lease defines exactly which items are recoverable, so the wording of each lease matters.

How is a tenant's proportionate share calculated in a multi-tenancy building?+

The tenant's share is calculated as their NLA (net lettable area) divided by the total NLA of the building. NLA measures the actual usable floor space of each tenancy and excludes common areas like lobbies, stairwells and plant rooms. Many managers incorrectly use GFA (gross floor area), which includes those common areas and understates each tenant's share, meaning the landlord absorbs the difference every year.

What is the outgoings reconciliation deadline for retail leases in NSW?+

Under Section 28 of the Retail Leases Act 1994 (NSW), landlords must provide a reconciliation statement within 3 months of the end of the accounting period. Miss that deadline and you permanently lose the right to recover any shortfall for that period. There is no extension and no retrospective recovery available.

What is the difference between NLA and GFA for outgoings calculations?+

NLA (net lettable area) is the usable floor area within a tenancy boundary, excluding structural walls, common areas, and shared facilities. GFA (gross floor area) includes everything within the outer walls of the building including common areas. Using GFA instead of NLA to calculate a tenant's proportionate outgoings share results in a lower denominator, understating the tenant's liability and costing the landlord money every reconciliation period.

Can a commercial landlord recover land tax from their tenant in NSW?+

It depends on the lease type. Section 26 of the Retail Leases Act 1994 (NSW) voids any clause in a retail lease that requires a retail tenant to pay land tax. For industrial and commercial office leases, land tax is recoverable if the lease specifically allows it. Many managers never check the lease or raise the charge, leaving significant recoverable amounts uncollected year after year.

What happens if outgoings are not reconciled at the end of the financial year?+

The shortfall is gone. There is no way to retrospectively recover outgoings once the statutory deadline passes under the Retail Leases Act. For non-retail leases, you may still have a contractual right, but the practical and legal difficulty increases significantly over time. Every year without a reconciliation is money permanently lost to the landlord.

What you can and
can't recover.

Recovery rights differ between commercial and retail leases. The Retail Leases Act 1994 (NSW) bans certain recoveries outright. Always check your lease before issuing an outgoings notice.

Commercial Lease
Industrial / Office / Warehouse
Retail Leases Act 1994 does not apply
Can recover
Council rates
Water & sewerage rates
Building insurance
Fire safety compliance
Common area cleaning & maintenance
Waste removal
Security services (common areas)
Common area electricity
Pest control (common property)
Admin fund levy strata only
Only if expressly in the lease
Land tax
Property management fees
Capital works / sinking fund
HVAC / lift / building services
Roof, facade & structural maintenance
Car park & essential services
Strata management fees strata, often challenged
Cannot recover
Building depreciation
Capital improvements (enhancements)
Income tax & capital gains tax
Mortgage repayments / interest
Legal fees (lease preparation)
Letting fees / leasing commissions
Special levies strata only
AGM / committee / lot repair costs strata only
Retail Lease
Shops / Cafes / Showrooms
Retail Leases Act 1994 (NSW) applies
Can recover
Council rates
Water & sewerage rates
Building insurance
Fire safety compliance
Common area cleaning & maintenance
Waste removal
Security services (common areas)
Common area electricity
Pest control (common property)
Admin fund levy strata only
Void by statute — RLA s26
Land tax RLA s26
Property management fees RLA s26
Letting fees & leasing commissions RLA s26
Strata management fees RLA s26
Strata special levies RLA s26
Cannot recover
Building depreciation
Capital improvements (enhancements)
Income tax & capital gains tax
Mortgage repayments / interest
Legal fees (lease preparation)
Special levies / by-law compliance costs
AGM / committee / lot repair costs

General guidance only. Recoverability depends on specific lease wording and applicable NSW legislation. Consult a commercial leasing lawyer before pursuing recovery of disputed outgoings. Key legislation: Retail Leases Act 1994 (NSW) s26 · Strata Schemes Management Act 2015 (NSW) s80–82.

Outgoings reconciliation
calculator.

Enter your building's outgoings and tenant payments below. Takes about two minutes.

01 Property Type

Is this a freehold property (direct title) or a strata lot within a body corporate scheme? This determines which outgoings are recoverable.

02 Lease Type
Retail Leases Act 1994 (NSW) Section 26: Land tax and management fees are VOID and cannot be recovered from retail tenants, even if the lease says otherwise. Letting fees and leasing commissions are also prohibited.
03 Property Type
04 Actual Outgoings for the Year

Enter the actual annual amounts from invoices and council notices, excluding GST. Leave blank if not applicable.

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$
$

For strata properties, most operating costs (insurance, cleaning, fire safety) are bundled into the body corporate admin levy. Enter the levy amounts below. Only enter additional items if billed separately outside the levy.

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Additional Expenses

Add any outgoings not listed above, e.g. security, signage, HVAC, pest control.

Total annual outgoings: Total: $0.00
Excluding GST
05 Tenant Payments

Enter the lease estimate (what the tenant was charged) and the amount actually paid.

Tenant Share Lease estimate ($) Amount paid ($)
06 Review & Calculate
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