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Lease Hire Agreement for Australia

Lease Hire Agreement Template for Australia

An Australian-compliant Lease Hire Agreement is a comprehensive legal document that establishes the terms and conditions for the hiring of assets or equipment. It complies with Australian federal and state legislation, including the National Consumer Credit Protection Act and Australian Consumer Law. The agreement covers essential elements such as payment terms, maintenance responsibilities, insurance requirements, and end-of-lease conditions, while incorporating specific provisions required under Australian law for both consumer and business leasing arrangements.

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What is a Lease Hire Agreement?

The Lease Hire Agreement is a vital commercial document used in Australian business operations when one party (the lessor) agrees to hire out assets or equipment to another party (the lessee) for a specified period and payment terms. This type of agreement is commonly used across various industries for acquiring access to essential business assets without the capital expenditure of purchasing. The Lease Hire Agreement must comply with Australian federal and state legislation, including consumer protection laws, financial services regulations, and state-specific commercial laws. It typically includes detailed provisions for asset maintenance, insurance, payment schedules, and end-of-lease obligations, making it suitable for both business-to-business and business-to-consumer arrangements.

What sections should be included in a Lease Hire Agreement?

1. Parties: Identification of lessor and lessee with full legal names and details

2. Background: Context of the agreement and brief description of the arrangement

3. Definitions and Interpretation: Defined terms and rules for interpreting the agreement

4. Asset Details: Description of the leased asset(s) and their condition

5. Term and Commencement: Duration of lease and commencement date

6. Payment Terms: Lease payment amounts, frequency, and payment methods

7. Delivery and Return: Conditions for asset delivery and return

8. Usage Conditions: Permitted use and restrictions on asset usage

9. Maintenance and Repairs: Responsibilities for maintaining and repairing the asset

10. Insurance Requirements: Required insurance coverage and responsibilities

11. Risk and Liability: Allocation of risks and liability between parties

12. Default and Termination: Events of default and termination rights

13. General Provisions: Standard legal provisions including notices, governing law, and dispute resolution

What sections are optional to include in a Lease Hire Agreement?

1. Consumer Credit Protection: Required for consumer leases - includes mandatory consumer protection provisions and credit disclosures

2. Maintenance Services: Detailed maintenance terms when maintenance is included in the lease package

3. Multiple Location Provisions: Required when assets can be used across multiple locations

4. Security Deposit: Terms relating to security deposit if required

5. Purchase Option: Terms for end-of-lease purchase options if available

6. GST Registration: Required for business leases - GST registration details and tax treatment

7. Sub-leasing Provisions: Terms allowing or prohibiting sub-leasing of the asset

8. Upgrade Options: Terms for upgrading the asset during the lease period

What schedules should be included in a Lease Hire Agreement?

1. Schedule 1 - Asset Specification: Detailed technical specifications of the leased asset

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment amounts and dates

3. Schedule 3 - Condition Report: Initial condition report of the asset

4. Schedule 4 - Insurance Requirements: Detailed insurance requirements and minimum coverage

5. Schedule 5 - Maintenance Schedule: Required maintenance schedule and procedures

6. Schedule 6 - Return Conditions: Detailed conditions for asset return at lease end

7. Appendix A - Usage Guidelines: Detailed guidelines for proper asset usage and operation

8. Appendix B - Service Level Agreement: Details of any included maintenance or support services

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions










































Clauses




































Relevant Industries

Manufacturing

Construction

Mining

Agriculture

Transportation

Logistics

Healthcare

Information Technology

Retail

Hospitality

Professional Services

Education

Financial Services

Telecommunications

Energy

Relevant Teams

Legal

Finance

Procurement

Operations

Risk Management

Asset Management

Commercial

Treasury

Facilities Management

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Manager

Procurement Manager

Operations Manager

Fleet Manager

Legal Counsel

Contract Administrator

Risk Manager

Asset Manager

Commercial Manager

Equipment Manager

Facilities Manager

Treasury Manager

Leasing Coordinator

Business Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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