Local guide: New South Wales, Australia / English. AUD examples only; no live rents, quotes or legal advice.
Decide whether breaking a fixed-term lease in NSW is worth the cost. You need your weekly rent, the start and end dates of the fixed term, the date you expect to hand back the keys, the new rent and the moving costs that leaving early would cause.
The biggest limit: the set break fee below applies to NSW fixed-term agreements of three years or less signed after 23 March 2020. Older agreements, longer terms and exemptions such as domestic abuse follow different rules, so confirm which one applies before relying on any number.
How is the NSW break lease fee worked out?
NSW Fair Trading lists a mandatory break fee based on how much of the fixed term has expired when you leave. Section 107 of the Residential Tenancies Act 2010 sets the same four bands for fixed terms of up to three years.
| Share of fixed term expired | Break fee | Hypothetical fee at AUD 600.00 a week | Hypothetical hand-back day (share expired) |
|---|---|---|---|
| Less than 25% | 4 weeks’ rent | AUD 2,400.00 | Day 91 (24.93%) |
| 25% or more, less than 50% | 3 weeks’ rent | AUD 1,800.00 | Day 140 (38.36%) |
| 50% or more, less than 75% | 2 weeks’ rent | AUD 1,200.00 | Day 183 (50.14%) |
| 75% or more | 1 week’s rent | AUD 600.00 | Day 274 (75.07%) |
The fee is counted in weeks of rent, so start from the weekly amount. If you pay fortnightly, halve the fortnightly rent. If your agreement states a calendar-month rent, convert it with monthly rent × 12 ÷ 52, as set out in weekly rent to monthly in Australia.
To find the share expired, divide the days of the fixed term that have passed by the total days in the term. A 12-month term usually covers 365 days, or 366 when it includes 29 February. Check the exact dates in your agreement rather than assuming twelve equal months.
The bands move sharply. In this hypothetical 365-day term, leaving on day 91 means 24.93% has expired and the fee is four weeks, while day 92 is 25.21% and the fee drops to three weeks. Near a boundary, confirm in writing which date and day count the agent uses.
Is breaking the lease cheaper than staying?
The break fee is only one side of the decision. The other side is how much less you pay each month at the new place, minus the moving costs that happen only because you leave early. Use the comparison below with option A as staying and option B as moving.
Local guide · AU / en-AU
Fixed-cost option comparison
Compare two options over the same months, including setup and a confirmed exit fee.
Enter your own numbers, or load a hypothetical example. Examples are not local prices, quotes or legal rules. Results appear only after you choose Calculate.
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Assumes constant monthly prices and the same covered service. Verify contract terms, taxes, usage charges and cancellation eligibility yourself. Recovery time is shown only when option B has a lower monthly cost. Compare costs still payable from the same starting date. Exclude non-refundable setup fees you have already paid. For an existing option A, enter 0 for its upfront cost unless a new upfront payment is still due.
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Enter both rents as monthly planning averages (weekly rent × 52 ÷ 12). Put the break fee in the exit-fee field, and removalist, connection and any overlapping rent in option B’s upfront cost. Leave option A’s upfront cost at zero unless staying also triggers a new payment.
Do not enter a rental bond as a cost. A bond is held money that may be refunded, transferred or claimed against, which is different from a fee you pay and do not get back. Keep it on a separate cash plan instead.
What does a checked hypothetical example look like?
These amounts are a hypothetical example to show the arithmetic. They are not NSW average rents, typical removalist prices or a recommendation to move.
Inputs: Current rent is AUD 600.00 a week and the new rent is AUD 540.00 a week. You hand back the keys on day 140 of a 365-day fixed term. Moving now costs AUD 1,000.00 for removalists and connections, and you compare 12 months.
Formula: monthly rent = weekly rent × 52 ÷ 12; break fee = 3 weeks × weekly rent, because 140 ÷ 365 = 38.36%; option A total = A monthly × months; option B total = B monthly × months + moving costs + break fee.
Result: Option A is AUD 2,600.00 a month and totals AUD 31,200.00. Option B is AUD 2,340.00 a month, so it totals AUD 28,080.00 + AUD 1,000.00 + AUD 1,800.00 = AUD 30,880.00. Moving saves AUD 320.00 over 12 months.
What to check: The monthly saving is AUD 260.00, and the extra AUD 2,800.00 takes 10.77 months to recover, which the calculator rounds up to 11 months. Over 6 months, moving costs AUD 1,240.00 more: AUD 16,840.00 against AUD 15,600.00.
Should moving costs count if you would move anyway?
If you already planned to leave when the fixed term ends, and the move would cost about the same then, those costs are not caused by breaking the lease. In that case the break fee is the main extra cost of leaving early.
The comparison period should then be the time left on the fixed term. In the example, 365 − 140 = 225 days remain, a little over seven months, so the check below uses 7 whole months and sets option B’s upfront cost to zero.
Option A totals AUD 2,600.00 × 7 = AUD 18,200.00. Option B totals AUD 2,340.00 × 7 + AUD 1,800.00 = AUD 18,180.00. Moving early saves only AUD 20.00, and the AUD 1,800.00 fee takes 6.92 months to recover, shown as 7 months.
That near break-even result is the point: a cheaper rent does not automatically cover the fee when little time is left. The calculator holds prices constant, so treat it as a timing test rather than a forecast of future rents.
When does the set break fee not fit your lease?
- Your agreement was signed before 23 March 2020. The former rules apply. If the optional break fee clause was not deleted, the fee is 6 weeks’ rent in the first half of the term or 4 weeks’ rent in the second half.
- Your fixed term is longer than three years. There is no set fee. The landlord may negotiate compensation for costs such as lost rent, advertising and letting fees, and may claim from the bond or apply to the NSW Civil and Administrative Tribunal if you cannot agree.
- The landlord has given you a termination notice. You may be able to leave early without a break fee by giving an early exit notice at least 14 days before you hand back possession, within the last 60 or 90 days of the term depending on its length. This does not apply when the landlord is ending the tenancy for a breach or because the property is unusable.
- You are in circumstances of domestic abuse. A tenant can end the tenancy immediately without penalty if the tenant or their dependent child is in those circumstances. NSW Fair Trading has a separate page on the process.
- Another listed exemption applies. NSW Fair Trading lists 14 days’ written notice without penalty for situations such as accepting social housing, moving into aged care or some landlord breaches. On fixed terms of 2 years or more, a rent increase notice lets you leave with 21 days’ written notice before the increase starts.
- The property is outside NSW. Other states and territories use different rules, so this fee table and example do not apply.
What else can change the amount you actually pay?
Check your rent ledger. Rent owed up to the day you hand back possession is separate from the break fee, and days already paid in advance should not be counted again when you work out what is still due.
Section 107 also says money you paid the landlord when ending the agreement early, other than money already due under the agreement, is deducted from the amount payable. Keep receipts and written records of any payment or agreement.
If some of the cash will come from your bond refund, do not count it as available until the bond is released. The moving out costs guide for Australia shows how to keep the bond, setup and buffer in separate buckets, and the moving cash plan helps you set a total target.
How the comparison calculator handles inputs and rounding
Option A total = monthly A × months + upfront A. Option B total = monthly B × months + upfront B + confirmed exit fee. Saving = A total − B total, so a negative saving means moving costs more over that period.
The recovery period divides B’s extra upfront cost, including the exit fee, by the monthly saving and rounds up to whole months. It appears only when option B is cheaper every month.
Weekly rent × 52 ÷ 12 gives a monthly planning average, not the rent due in any particular calendar month. Enter cents if your conversion produces them, and round money you set aside up rather than down.
Quick decision checklist
- Confirm the agreement date, the fixed-term length and that the property is in NSW.
- Count the days expired at your planned hand-back date and confirm the fee band with the agent in writing.
- Check whether a termination notice, the domestic abuse provisions or another exemption means no break fee applies.
- Include only the moving costs caused by leaving early, and keep the bond out of the cost comparison.
- Run the comparison for the months that matter, then test a shorter period before you give notice.
Sources, scope and editorial note
- NSW Government (NSW Fair Trading): Breaking a fixed-term residential tenancy early. Used for: break fee bands, the 23 March 2020 cut-off, older and longer-term rules, exemptions and notice periods. Page last updated 21 September 2026.
- NSW Legislation: Residential Tenancies Act 2010, section 107. Used for: the four break fee bands for fixed terms of up to three years and the deduction of money paid on early termination.
Sources checked 29 September 2026. This guide was prepared with AI assistance and source checking; it has not received professional financial or legal review. It is educational, not legal, tenancy or financial advice, and there are no provider recommendations. Check your agreement and current NSW rules before acting.
