Advice & Articles

What Queensland Commercial Landlords Must Know About the New Property Law Act

Published: 19 March 2026
Last Updated: 19 March 2026

Queensland’s property law landscape has undergone its most significant overhaul in decades. The Property Law Act 2023 (Qld) (the new Act) commenced on 1 August 2025, replacing the Property Law Act 1974 (Qld) after more than 50 years. If you own or manage commercial property in Queensland, whether in Brisbane, on the Gold Coast, the Sunshine Coast, or anywhere else across the state, you need to understand how this legislation affects your rights, your obligations, and your lease agreements. And if your commercial premises also fall within the definition of a ‘retail shop’, there is a second layer of law at play: the Retail Shop Leases Act 1994 (Qld) (RSLA). Understanding how the two pieces of legislation interact is critical and getting it wrong can be costly.

Quick Summary. This article covers:

• What the new Property Law Act 2023 changes for QLD commercial landlords

• How the Retail Shop Leases Act 1994 interplays with those changes

• Common traps landlords fall into and specific legal risks to avoid

• What steps you should take now to protect yourself

Not sure if your lease complies with the new Act? Our Queensland property law team can review your commercial lease and advise you on your obligations, without legal jargon.

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Why the New Property Law Act Matters for Commercial Landlords

The Property Law Act 2023 (Qld) is not simply a tidy-up exercise. It introduces substantive changes to how commercial leases operate in Queensland. Critically, key leasing provisions including those relating to consent to assignment and notices to remedy breach cannot be contracted out of and apply to all leases regardless of when they were entered into. Section 255(1) of the new Act confirms this retrospective application for section 142 (consent) and sections 153 and 154 (notices to remedy breach). Landlords cannot assume that a lease signed before 1 August 2025 is unaffected.

Key areas of change affecting commercial landlords include:

Consent to assignment, subletting, change of permitted use and building works — a formalised proposal notice and decision notice process now governs all such requests (section 142). Lessors cannot unreasonably withhold consent and must give a written decision notice within one month of receiving full particulars from the lessee.
Notices to remedy breach — must now be given in the approved form and served not only on the lessee but also on all ‘designated persons’, which is broadly defined to include guarantors, mortgagees and receivers of the lessee’s interest, and sublessees (sections 152, 153 and 154).
Assignor liability on subsequent assignment — section 144 releases an original lessee (and its guarantor) from liability for breaches committed by a subsequent assignee, but only where the lease itself was entered into on or after 1 August 2025 (section 255(2)). For leases entered into before that date, the common law position continues to apply.
Implied terms — the new Act consolidates and modernises implied lease covenants (Schedule 1). Some may be excluded or modified by express agreement in the lease; others cannot be contracted out of.
Buyer takes subject to lease terms — section 140 provides that all terms of a registered lease bind a buyer of the land, whether or not those terms touch and concern the land. Prompt notice of purchase must be given to lessees under section 141.
Updated re-entry and termination provisions — including updated rules governing relief against forfeiture (sections 156 to 162).

⚠️ Important: Many of the new Act’s key leasing provisions apply to all leases, whether entered into before or after 1 August 2025. This means that even a well-drafted pre-existing commercial lease may now operate differently than the parties intended. The consent process under section 142 and the notice to remedy breach requirements under sections 153 and 154 apply regardless of contrary provisions in the lease. Legal review of your existing leases is strongly recommended.

Does the Retail Shop Leases Act Also Apply to Your Lease?

This is the question many commercial landlords fail to ask and it is a critically important one.

If your commercial lease is also a lease of a ‘retail shop’ as defined under the Retail Shop Leases Act 1994 (Qld), then both pieces of legislation apply simultaneously. The RSLA imposes its own set of obligations on landlords that sit alongside, and in some cases override, the general provisions of the new Act. Section 17 of the RSLA provides that the Act prevails over any inconsistent provision of a retail shop lease and section 16 prohibits contracting out.

What Is a ‘Retail Shop’ Under the RSLA?

Under sections 5B and 5C of the RSLA, a ‘retail shop’ means premises that are either:

situated in a retail shopping centre (as defined in section 5D); or
used wholly or predominantly for the carrying on of a retail business, being a business prescribed by regulation as a retail business under the Retail Shop Leases Regulation 2016 (Qld).

A ‘retail shopping centre’ is defined in section 5D as a cluster of premises having five or more premises used wholly or predominantly for retail businesses, all owned by the one person or with the one head lessor, located in one building or adjoining or separated buildings, and promoted or generally regarded as constituting a shopping centre, shopping mall, shopping court or shopping arcade.

The test for whether premises are a retail shop is based on actual use, not the label in the lease document. A tenancy described in the lease as ‘commercial’ will still attract the RSLA if the premises are in fact used wholly or predominantly for a retail business.

What Premises Are Excluded from the RSLA?

Not all leases of retail-type premises fall within the RSLA. Under section 5A(2), a retail shop lease does not include a lease of:

a retail shop with a floor area of more than 1,000m²;
a retail shop within the South Bank corporation area if the lease is entered into or granted by the South Bank Corporation and is either a perpetual lease or a lease for a term (including renewal options) of at least 100 years;
premises used wholly or predominantly for the carrying on of a business by a lessee for a lessor as the lessor’s employee or agent;
premises in a theme or amusement park;
premises at a flea market, including an arts and crafts market;
a temporary retail stall at an agricultural or trade show, or at a carnival, festival or cultural event; or
premises that, if not leased, would form part of a common area of a retail shopping centre, where the premises are used for an information, entertainment, community or leisure facility; telecommunication equipment; an ATM; a vending machine; an advertisement display; storage; or parking.

In addition, under section 5A(3), a lease of premises located in a retail shopping centre is not a retail shop lease if the premises are not used wholly or predominantly for a retail business and, at the time the lease is entered into, the retail area of the relevant level (in a multi-level building) or the building (in a single-level building) represents 25% or less of the total lettable area of that level or building. The Act includes worked examples: an accounting practice on an upper level of a centre where 75% of that level comprises professional offices, or a medical centre in a stand-alone building within the parking area of a centre where 80% of the building comprises medical services, would not be retail shop leases.

💡 Did You Know? Many commercial landlords are surprised to learn that their lease triggers the RSLA. If it does, there are mandatory disclosure obligations before the lease is entered into, strict limitations on what outgoings can be passed to the tenant, and additional rules around rent reviews, lease renewals, and demolition. Getting advice before you sign or before you take steps against a tenant is essential.

Unsure whether your lease is caught by the Retail Shop Leases Act? We advise commercial landlords across Brisbane, the Gold Coast and the Sunshine Coast and anywhere else in Queensland on exactly these questions

📞 1300 334 566 | Contact us for a confidential chat.

How the Property Law Act 2023 and the RSLA Interact

When a commercial lease is also a retail shop lease, the two statutes must be read together. Both sets of rules must be complied with. Where there is inconsistency between the RSLA and the terms of the lease itself, the RSLA prevails by virtue of section 17. It is important to note that this is not a general rule that the RSLA overrides the Property Law Act 2023 itself, rather, both Acts operate concurrently, and the RSLA’s specific lease standards apply in addition to the framework under the new Act.

Disclosure Obligations

Under section 21B of the RSLA, a landlord must provide a disclosure statement (in the approved form under the Act) to a prospective retail tenant at least 7 days before the lease is entered into. The landlord must also provide a copy of the proposed lease at the same time. These are statutory obligations that cannot be contracted out of.

Section 21F sets out the consequences of non-compliance. If the landlord fails to provide the disclosure statement (or the proposed lease) at least 7 days before the lease is entered into, or if the statement is defective — meaning it is incomplete, misleading or contains false information — the lessee has the right to terminate the lease by written notice within 6 months after the lease is entered into. A lease cannot be terminated merely for minor or technical omissions that do not disadvantage the lessee, or where the landlord acted honestly and reasonably.

Where the RSLA applies on renewal of a lease or exercise of an option, section 21E imposes a disclosure obligation on the landlord at that point also. Within 14 days of receiving a valid option exercise notice, the landlord must give a disclosure statement to the lessee; the lessee then has 14 days to withdraw the option notice if they choose.

A prospective lessee may waive the 7-day period by providing a written waiver notice and, if the lessee is not a major lessee (as defined in the Act), a financial and legal advice report under section 22D confirming they have received independent advice on the implications of waiving the disclosure period. Even where the period is waived, the disclosure statement must still be provided before the lease is entered into.

Outgoings and Costs

The RSLA contains strict rules about what outgoings a landlord can recover from a retail tenant. Section 7(3) of the RSLA expressly excludes from the definition of ‘outgoings’ a number of items, most notably:

land tax payable on the land on which the centre or building is situated;
expenditure of a capital nature, including the amortisation of capital costs;
contributions to a depreciation or sinking fund;
insurance premiums for loss of profits;
payment of an excess in relation to a claim on the landlord’s insurance policy; and
the landlord’s contributions to merchants’ associations and centre promotion funds.

These items cannot be recovered from a retail tenant as outgoings even if the lease purports to allow it. Under sections 38A and 38B, the landlord must provide an annual estimate of apportionable outgoings at the beginning of each year and an audited annual statement after the end of each year. Outgoings that are not disclosed cannot be recovered.

Rent Reviews

Retail shop leases are subject to specific rules about rent review mechanisms. Under section 27 of the RSLA, rent may be reviewed only once per year (except in the first year of the lease) and only one basis of review can apply at each review date. Section 36A voids any ‘ratchet rent’ provision — that is, any clause that prevents the rent from decreasing on a market rent review. If the parties cannot agree on the market rent, either party may apply to have a specialist retail valuer appointed to determine it under section 28.

The new Property Law Act does not alter these protections, they remain in full force under the RSLA.

Assignment and Subletting

Section 142 of the Property Law Act 2023 now governs the process for seeking and giving consent to assignment, subletting, changes to permitted use, and building works for all commercial leases — including retail shop leases. A lessee must give the landlord a proposal notice, and the landlord must give a written decision notice within one month of receiving all relevant particulars (or such longer period as agreed). The landlord cannot unreasonably withhold consent, and section 142 cannot be contracted out of.

Where the lease is a retail shop lease, section 50 of the RSLA provides that if a retail tenancy dispute arises between a lessor and lessee about an assignment of the lease — including a failure to give a decision notice in time — the dispute must be resolved through the RSLA’s dispute resolution process (mediation and, if unresolved, QCAT), rather than through the courts.

Landlords should also be aware that, for retail shop leases entered into on or after 1 August 2025, section 50A of the RSLA (release of assignor and guarantor on assignment) now interacts with section 144 of the new Act. For leases entered into before that date, the common law position regarding assignor liability after subsequent assignments continues to apply.

Dispute Resolution

Retail tenancy disputes under the RSLA are subject to a specific two-stage process. First, the dispute must be lodged with the Queensland Small Business Commissioner (QSBC), whose office administers the mediation function previously handled by specialist retail tenancy mediators (following the Small Business Commissioner Act 2022). The Commissioner acts on the dispute notice and arranges a mediation conference. Attendance at mediation is not compellable, but the process must generally be attempted before a party can apply to QCAT.

If mediation does not resolve the dispute, the mediator may refer it to QCAT, or a party may apply directly to QCAT under section 64. QCAT has jurisdiction to hear and decide retail tenancy disputes and can make orders including for compensation, varying lease terms, and other relief under section 83 of the RSLA.

Non-RSLA commercial lease disputes — for example, disputes about a landlord’s failure to comply with the consent process under section 142 of the new Act in a non-retail lease, proceed through the courts. Identifying which pathway applies is an important preliminary step in any commercial leasing dispute.

Common Traps for Commercial Landlords in Queensland

Whether or not your lease triggers the RSLA, the introduction of the Property Law Act 2023 creates a number of traps for landlords who have not reviewed their position. Here are the most significant.

1. Assuming Existing Leases Are Unaffected

This is the most common and potentially most costly mistake. Section 255(1) of the new Act confirms that the consent provisions (section 142) and the notice to remedy breach provisions (sections 153 and 154) apply to all leases — including those entered into before 1 August 2025. A landlord who follows the procedure set out in an outdated lease rather than complying with the new Act risks their position entirely. The new Act governs, regardless of what the lease says.

2. Failing to Give a Notice to Remedy Breach in the Correct Form and to All Required Parties

Under sections 153 and 154 of the new Act, a notice to remedy breach must be given in the approved form and served not only on the lessee but on all ‘designated persons’. That term is defined broadly in section 152 to include mortgagees and receivers of the lessee’s interest in the land, guarantors of the lease, sublessees, and any assignor who has not been released from liability. Failure to serve all designated persons in the approved form can render the notice ineffective and undermine the landlord’s right to re-enter or terminate.

3. Incorrectly Recovering Outgoings from Retail Tenants

If your lease attracts the RSLA and you are recovering outgoings that the Act prohibits — most commonly, land tax — you face ongoing exposure to claims from tenants for repayment. The RSLA’s exclusions under section 7(3) apply regardless of what the lease says. The risk is not merely technical: tenants are increasingly aware of these protections, and the exposure can accumulate over years of a lease.

4. Getting the RSLA Disclosure Process Wrong

Where the RSLA applies, the disclosure obligations under section 21B are not optional and timing is critical. The landlord must provide the disclosure statement (in the approved form) and a copy of the proposed lease at least 7 days before the lease is entered into. A disclosure statement that is late, incomplete, false or misleading gives the lessee a statutory right to terminate the lease within 6 months of entering into it (section 21F). The same obligation applies on renewal under section 21E, a fact that is frequently overlooked. Given the financial consequences of a tenant exercising a right to terminate a lease, getting disclosure right from the outset is essential.

5. Unreasonably Withholding or Delaying Consent to Assignment

Under section 142 of the new Act, the landlord must respond to a lessee’s proposal notice with a decision notice within one month of receiving full particulars (or a longer agreed period). The landlord cannot unreasonably withhold consent, and any conditions of consent must be reasonable. Where a decision notice is not given in time, or consent is unreasonably withheld, the lessee may apply to the court for relief (or to QCAT if the lease is a retail shop lease). Landlords must respond promptly and ensure any conditions imposed are justified.

6. Failing to Recognise When the RSLA Applies

A surprisingly common trap. A lease described as ‘commercial’ in the document may in fact be a retail shop lease if the premises are actually used for a retail business and the floor area is 1,000m² or less. The test is use, not label. Landlords who do not recognise that the RSLA applies may fail to comply with the disclosure regime, attempt to recover prohibited outgoings, or proceed with a dispute through the wrong forum — all of which can have serious consequences.

7. Self-Help Remedies and Unlawful Re-Entry

The procedural requirements for re-entry and termination must be strictly followed. A landlord who changes the locks or re-enters premises without having given a compliant notice to remedy breach in the approved form to all required parties, and without allowing a reasonable time for the breach to be remedied, acts unlawfully. This can expose the landlord to claims for damages and injunctions. The right to re-enter is a remedy of last resort that must follow the prescribed process.

⚠️ Real Risk: Landlords who take matters into their own hands — whether by re-entering premises without following the prescribed process, refusing consent to assignment without proper grounds, recovering prohibited outgoings, or using a defective breach notice — can face damages claims, injunctions, or QCAT proceedings. Early legal advice is significantly less expensive than dealing with the consequences.

Thinking about taking action against a tenant or a tenant taking action against you?

Get advice before you act. Our team can walk you through your rights and obligations under both the Property Law Act and the Retail Shop Leases Act.

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What Should Commercial Landlords Do Now?

The new Act is in force and applies now — including to your existing leases. Here is what we recommend:

Step 1 — Have Your Existing Leases Reviewed

If you have commercial leases that were drafted or executed before 1 August 2025, have them reviewed against the new Act. You need to understand where they may be inconsistent with the current framework and how that affects your practical position on consent requests, breach notices, and enforcement.

Step 2 — Confirm Whether the RSLA Applies to Each Tenancy

Consider each tenancy carefully and on its facts. Is the premises being used for a retail business? Is the floor area 1,000m² or less? Is the premises in a retail shopping centre? Is the premises otherwise excluded under section 5A? If there is any doubt, get advice. The RSLA imposes significant additional obligations, and misclassifying a tenancy in either direction carries consequences.

Step 3 — Update Your Lease Precedents

If you use a standard lease template, have it updated to reflect the new Act — including the consent mechanism under section 142 and the breach notice requirements under sections 153 and 154. Where the RSLA applies, ensure that outgoings clauses, disclosure procedures, and rent review mechanisms are compliant with both Acts. New approved forms have been published and must be used where required.

Step 4 — Get Advice Before Taking Steps Against a Tenant

If a tenant is in default, has failed to pay rent, or you are considering terminating a lease or re-entering premises, obtain legal advice first. The procedural requirements under the new Act are strict, apply regardless of what the lease says, and non-compliance can undermine your position or expose you to liability.

Step 5 — Manage Renewals and New Leases Under the New Framework

For leases coming up for renewal, ensure the RSLA disclosure process under section 21E is followed where applicable. For new leases, ensure they are drafted for compliance with the current legal framework from the outset — including proper disclosure where the RSLA applies, and a consent mechanism consistent with section 142 of the new Act.

You Do Not Have to Navigate This Alone

The shift from the Property Law Act 1974 to the Property Law Act 2023 is the most significant change to Queensland property law in over 50 years. For commercial landlords, particularly those whose tenancies are also governed by the Retail Shop Leases Act, the interaction between the two pieces of legislation creates real complexity that is difficult to navigate without legal guidance.

We are a Queensland law firm with offices in Brisbane, the Gold Coast, and the Sunshine Coast. We act for commercial landlords and tenants across the state, and we can assist you electronically wherever in Queensland you are located.

Whether you need a lease review, advice on a specific dispute, assistance with a new commercial lease, or guidance on whether the RSLA applies to your tenancy, we can help.