Flexible Office vs Lease in Sydney: Contracts, Terms, Deposits and Tax (2026)

In Sydney the contract decides almost everything else: the term, the deposit, who fits out the space, and whether you need a local company to sign. This guide sets the three contract forms side by side and then covers what a company from abroad needs in place before it signs. Flexible space is quoted per desk per month; conventional leases are quoted per square metre per year. Both are before GST at 10%.

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The three contracts

Serviced office or coworking private office

A membership or licence agreement, month-to-month or fixed for six to twelve months, with one month’s notice. One all-in monthly fee per desk covers rent, outgoings, utilities, internet, cleaning, reception and meeting-room credits; a deposit of one to two months is usual. GST at 10% is added.

Enterprise suite or managed floor

Twelve to thirty-six months for a dedicated floor the operator fits out and runs, priced per desk or per month, for teams of twenty and up.

Conventional lease

Typically three to five years, rent quoted in dollars per square metre per year as gross (outgoings included) or net (outgoings on top). Sydney landlords commonly offer incentives, rent-free periods or fit-out contributions, in exchange for the face rent. Security is usually a bank guarantee of three to six months’ rent rather than cash, and the lease carries a make-good obligation to reinstate the premises at the end.

Side by side

Setting up as a company from abroad

• A foreign company can take flexible space with company documents and ID; longer managed-office terms may need an Australian entity or a guarantee.
• To trade in Australia a foreign company either registers as a foreign company with ASIC or incorporates an Australian proprietary company, which needs at least one director who ordinarily resides in Australia and a registered office address. Directors need a Director ID. Virtual-office products from the operators cover the registered address.
• An ABN (Australian Business Number) is required to invoice and to register for GST; registration is free through the Australian Business Register.
• GST at 10% is charged on office fees and rent; a GST-registered business claims it back. Compare quotes on a GST-inclusive basis if your entity is not registered.

Who pays

• Flexible space: the operator pays the introducer when a tenant signs; the tenant pays nothing and the rate is the same as going direct.
• Leases: the landlord pays the leasing agent. A tenant representative for a larger requirement is paid by the tenant, usually as a share of the savings negotiated or a fixed fee.

SquareFoot lists 14 flexible office centres in Sydney from 4 operators, collected October 2026 from the operators’ own published pages. Guide written by SquareFoot; last reviewed October 2026.

Frequently asked questions

Is a flexible office in Sydney a lease?

No. It is a licence or service agreement for a fitted room with one monthly fee, usually one to twelve months and rolling after that. It gives no security of tenure and no fit-out obligation, which is the trade-off against a conventional lease.

Do I need an Australian company to rent an office in Sydney?

Not for flexible space. To trade, a foreign company registers with ASIC or incorporates locally, which requires an Australian-resident director and a registered office. An ABN is needed to invoice and to register for GST.

What is a make-good obligation?

A clause in most Australian leases requiring the tenant to return the premises to their original condition at the end of the term. It can be a significant cost and is a common negotiation point; flexible space has no equivalent.

Related: How to find office space in Sydney · Where to put an office in Sydney · Live listings in Sydney

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