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.
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.
Is this a freehold property (direct title) or a strata lot within a body corporate scheme? This determines which outgoings are recoverable.
Enter the actual annual amounts from invoices and council notices, excluding GST. Leave blank if not applicable.
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.
Add any outgoings not listed above, e.g. security, signage, HVAC, pest control.
Enter the lease estimate (what the tenant was charged) and the amount actually paid.
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