What does it cost to break a lease early in the ACT?
In the ACT, the cost to break a lease depends on your agreement. If your contract includes a break fee clause, it is legally capped at six weeks' rent during the first half of your lease, and four weeks' rent during the second half.
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How it works in practice
Standard Break Fee Clause
In the Australian Capital Territory (ACT), the cost to end a fixed-term lease early is heavily regulated. The most common scenario involves a standard "break fee" clause included in your residential tenancy agreement.
If this clause is present, your financial liability is strictly capped. If you break the agreement during the first half of your fixed term, the maximum fee is equivalent to six weeks of rent. If you break it during the second half of your fixed term, the cap reduces to four weeks of rent.
When There Is No Break Fee Clause
If your tenancy agreement does not contain a specific break lease clause, the rules change significantly. Instead of a flat capped fee, you are responsible for compensating the landlord for their actual financial losses.
This usually includes paying rent until a new tenant moves in or the lease expires, whichever comes first. You may also be required to cover reasonable advertising and re-letting costs.
Landlord Duty to Mitigate
Regardless of your contract type, landlords in the ACT have a strict legal duty to mitigate their losses. This means they must actively try to find a replacement tenant as quickly as possible to minimize the final amount you owe.
Important exceptions
You may not have to pay a break fee if you have legal grounds to terminate the lease early without penalty.
For example, you can end the lease without cost if you are experiencing domestic violence and need to leave for your safety, provided you give the required legal notice and evidence.
You also will not owe a fee if the landlord seriously breaches the tenancy agreement, or if you are moving into an aged care facility or social housing.
Additionally, if you mutually agree with the landlord on a different exit arrangement, that specific agreement overrides standard break fees.
What you should do now
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Check your residential tenancy agreement to see if it specifically includes a standard break fee clause.
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Provide written notice to your landlord or property manager stating your exact intended move-out date.
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Pay rent normally up until the day you hand back the keys and vacate the property.
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Facilitate open communication with the landlord to help them quickly find a new tenant and mitigate financial losses.
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Clean the property thoroughly and claim your bond online as soon as you have officially vacated the premises.
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