Outgoings Reconciliation Calculator
What your tenant owes in outgoings.
Enter your building costs and tenant areas. The calculator splits each recoverable outgoing by net lettable area, flags the items managers get wrong, and reconciles against what the tenant already paid. Built on NSW legislation.
NLA, not GFA. Every recoverable item split on net lettable area, the basis the lease intends.
Statutory flags. Land tax voided for retail under RLA s.26, with a live s.28 deadline warning.
Full reconciliation. Each tenant's share, what they paid, and the shortfall or refund.
How it works
Outgoings reconciliation, in plain English
Reconciliation is the annual process where you compare actual building operating costs against the estimates tenants paid, then adjust the difference. The lease sets what you can recover. NSW legislation sets the limits.
The proportional share
Divide each tenant's lettable area by the total building area. That percentage is their share of every recoverable outgoing. For single-tenancy properties the share is 100 percent.
The statutory limits
Retail leases sit under the Retail Leases Act 1994 (NSW). Land tax is void for retail under s.26. The reconciliation must be issued within three months of the lease year ending under s.28.
The reconciliation
Subtract what each tenant paid via monthly estimates from their reconciled annual share. A positive result is owing to you. A negative result is a refund or credit to the tenant.
The calculator
Run your outgoings reconciliation.
Pick your lease type and building, enter the annual outgoings and tenant areas, then add what each tenant paid. The tool returns each tenant's share and the shortfall or refund.
Retail lease deadline (RLA s.28)
Retail landlords must provide the outgoings reconciliation within 3 months of the financial year ending. For 2024-25 the deadline is 30 September 2025. Miss it and the right to recover any shortfall is lost permanently.
This is an indicative estimate only and not legal or financial advice. Results depend on your specific lease terms.
This calculator provides an estimate based on the figures you enter. Always review your lease agreement and consult a licensed property professional before issuing a reconciliation notice.
Your outgoings reconciliation
Net reconciliation
$0
across all tenancies
Cost per square metre (NLA)
The figures above are indicative estimates only, based on the information you provided. Actual outgoings reconciliation may differ due to lease terms, variations in actual outgoings, timing, interpretation of recoverable expenses, and market conditions.
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We return what is recoverable, what is not, and what you can still claim before the s.28 window closes. Free 10-minute check.
Dollar impact
Five outgoings mistakes ranked by cost.
Each of these turns up across NSW commercial portfolios. Each one moves money from your account to your tenant's.
Land tax never charged
In retail leases, RLA s.26 voids any land tax recovery clause. In industrial, office and strata leases, land tax is recoverable if the lease permits. Most managers never charge it.
Estimates never trued up
The tenant pays monthly estimates all year. The manager never reconciles against actuals. You absorb every shortfall, every year.
Capital read as operating
Repainting a worn wall is operating and recoverable. Repainting to upgrade the finish is capital and not. Most reconciliations get this wrong both ways.
Old schedule inherited
A new tenant takes over. The building has been re-measured. Nobody updates the schedule. The new tenant pays the old proportional share and the math drifts further each year.
The deadline missed
Section 28 sets a strict three-month window from the end of the lease year. Miss it and the right to recover any shortfall is gone for good. There is no extension.
Recoverable
What a NSW landlord can recover.
You can recover the tenant's proportional share of any outgoing the lease expressly permits, that genuinely relates to operating the building, and that is not statutorily prohibited.
Recoverable outgoings
Council rates and water rates. Building insurance premiums. Common-area maintenance and cleaning. Common-area lighting and electricity. Security and access systems. Lift and fire-service maintenance contracts. Pest control and waste management. Property management fees where the lease permits. Strata levies for strata-titled units. Land tax for industrial, office and strata leases only, where the lease permits.
For multi-tenancy buildings, split each recoverable item by Net Lettable Area, not Gross Floor Area. Most managers use GFA. That understates the tenant's share and you absorb the difference every year.
Statutory deadline
The three-month reconciliation window.
Section 28 of the Retail Leases Act 1994 (NSW) sets a strict window. You must give the tenant a written outgoings reconciliation within three months of the end of the lease year.
Missing the s.28 deadline does not just delay recovery. It permanently extinguishes your right to recover any shortfall for that period. The tenant has no obligation to pay shortfalls reconciled after the deadline, even where the lease permits recovery. One missed reconciliation across a portfolio can write off tens of thousands of dollars in recovery, every year the deadline slips. For non-retail commercial leases the limitation period is typically six years under the Limitation Act 1969 (NSW), though the lease itself may shorten it.
Worked example
A four-tenant retail building.
A 1,200 sqm retail strip with four tenants. The figures below show how the split and reconciliation run.
| Tenant | Area | Share | Annual recoverable | Paid | Reconciliation |
|---|---|---|---|---|---|
| Cafe | 180 sqm | 15.00% | $13,425 | $12,000 | +$1,425 owing |
| Hair salon | 120 sqm | 10.00% | $8,950 | $9,200 | -$250 refund |
| Physiotherapist | 300 sqm | 25.00% | $22,375 | $21,000 | +$1,375 owing |
| Discount store | 600 sqm | 50.00% | $44,750 | $46,800 | -$2,050 refund |
Total recoverable outgoings of $89,500 exclude land tax of $14,200, which is not recoverable under RLA s.26. The landlord issues four reconciliation statements within three months of the lease year ending, invoices the cafe and physiotherapist for the additional amounts, refunds or credits the hair salon and discount store, and provides an AAR if the discount store's $44,750 exceeds the statutory threshold.
Disputes
Common disputes, and how to prevent them.
For unresolved retail lease disputes, NCAT has jurisdiction. For non-retail commercial leases, the Local or District Court applies depending on quantum.
Tenant disputes the proportional share
This usually follows a re-measurement where the lease still records the old NLA. Provide the survey or floor plan that supports the area calculation.
Tenant disputes a recoverable item
Common with management fees, retail-centre marketing levies, and items the tenant believes are capital. Cite the lease clause that expressly permits the item.
Tenant requests inspection of invoices
This is a statutory right under the Retail Leases Act. Provide invoice copies within a reasonable time. Refusing it escalates the dispute to NCAT quickly.
Reconciliation issued late
If the s.28 deadline is missed, the shortfall is unrecoverable. The Act has no remedy and no extension mechanism.
Questions
Outgoings reconciliation, answered.
The questions NSW commercial landlords ask most about recovering outgoings.
What can a commercial landlord recover in outgoings under NSW law?
A commercial landlord can recover the tenant's proportional share of building operating costs that are expressly recoverable under the lease and not prohibited by statute. Typical recoverables include council rates, water rates, building insurance, common-area maintenance, cleaning, security, and management fees. For retail leases governed by the Retail Leases Act 1994 (NSW), land tax is statutorily not recoverable under section 26. Capital improvements, depreciation, and landlord-specific costs are generally not recoverable in any lease class.
When is the outgoings reconciliation deadline for NSW retail leases?
Under section 28 of the Retail Leases Act 1994 (NSW), the landlord must provide the tenant with a written outgoings reconciliation statement within three months of the lease year ending. Missing this statutory deadline permanently extinguishes the landlord's right to recover any shortfall for that period. The reconciliation must include a list of outgoings, audit details, and the tenant's proportional share calculation.
Can a landlord recover land tax from a retail tenant in NSW?
No. Section 26 of the Retail Leases Act 1994 (NSW) voids any clause in a retail lease that purports to recover land tax from the tenant. This applies regardless of how the lease is drafted. For industrial, office, and other non-retail commercial leases, land tax may be recovered if expressly permitted by the lease.
What is an AAR (Annual Audit Report) and when is it required?
An Annual Audit Report (AAR) is an independent auditor's report on the outgoings statement. Under the Retail Leases Act 1994 (NSW), an AAR is required when total outgoings recovered from a single tenant exceed the statutory threshold for the lease year. The audit must be conducted by a registered company auditor or chartered accountant and provided to the tenant with the reconciliation.
How do you calculate a tenant's proportional share of outgoings?
Divide the tenant's lettable area by the total lettable area of the building, expressed as a percentage. For example, a tenant occupying 250 sqm in a 1,000 sqm building has a 25% proportional share. The lease usually specifies whether the area calculation uses NLA (Net Lettable Area) or GLA (Gross Lettable Area). For single-tenancy properties the share is 100% of recoverable outgoings.
What happens if the tenant disputes the outgoings reconciliation?
The tenant has a statutory right to inspect supporting invoices and records under the Retail Leases Act 1994 (NSW). If a dispute cannot be resolved between the parties, retail lease disputes are heard by the NSW Civil and Administrative Tribunal (NCAT) Consumer and Commercial Division. For commercial leases not covered by the Act, disputes proceed via the Local or District Court depending on the amount in issue.
Are management fees recoverable as outgoings?
Property management fees are recoverable as outgoings when the lease expressly permits and the management service genuinely relates to the property's operation. For Blox-managed properties the 5% management fee is recovered from the tenant via outgoings on a net lease, meaning the landlord receives the rent without deduction. The fee is disclosed on the outgoings reconciliation.
Can outgoings be backdated if the landlord forgot to charge them?
For retail leases, no. Section 28 of the Retail Leases Act 1994 (NSW) creates a strict three-month reconciliation window from the end of the lease year. Outgoings not reconciled within that window are permanently unrecoverable from the tenant. For non-retail commercial leases, recovery generally follows the limitation period in the lease and the Limitation Act 1969 (NSW), typically six years.
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