At Ensure Legal, we have already seen first-hand how the Property Law Act 2023 (Qld) is reshaping commercial leasing across Queensland. Since the new Act commenced on 1 August 2025, both landlords and tenants have been caught off guard by stricter notice requirements, standardised lease terms, and new protections that override older contract clauses.
The Queensland Government’s own business resources were updated in late August and September 2025 to reflect these changes. But in practice, businesses are finding that the “official checklist” is not enough—commercial reality often looks very different once a dispute arises.
Here are our individual insights into what these updates really mean for your business.
1. Consent Is No Longer a Courtesy – It’s a Legal Process
In the past, many tenants told us they felt powerless when seeking landlord consent for a sublease, assignment, or even minor alterations. Under the new law, consent is now governed by a formal Proposal Notice → Decision Notice process.
- Tenant protection: If the landlord delays or withholds consent unreasonably, you can challenge it.
- Our insight: We’ve seen early disputes where landlords assumed they could still “sit on” requests. The Act makes this risky—courts can step in if landlords fail to act within one month.
2. Original Tenants and Guarantors Can Finally Step Away
One of the most significant reforms is the automatic release of original tenants and guarantors once a lease is reassigned and then reassigned again.
- Before: You could sell your business, assign the lease, but remain liable years later if the new tenant defaulted.
- Now: Section 144 of the Act protects you from “liability without end.”
- Our insight: For clients buying or selling businesses, this is a game-changer. It reduces the fear of “signing your life away” when guaranteeing a lease.
3. Ending a Lease Now Requires Prescribed Notices
The official updates emphasise that landlords must use Form 7 – Notice to Remedy Breach and Form 9 – Notice to Terminate Lease.
- Our insight: We have already advised tenants who received termination letters drafted on a landlord’s letterhead—but not in the prescribed form. Under the new law, these are defective. Tenants should not assume such letters are enforceable.
This is a crucial safeguard for tenants, but also a compliance risk for landlords who do not update their processes.
4. “Make Good” Obligations Are Still the Hotspot for Disputes
The Government’s update repeats the standard advice: tenants must return premises to their pre-lease condition. But in practice, the definition of make good is the number-one trigger for end-of-lease disputes.
- Our insight: We are currently helping a tenant in Brisbane where the landlord claimed repainting, carpet replacement, and deep-cleaning costs well above the lease wording. Under the new Act, keeping a clear condition report at the start is critical evidence.
5. Ending At-Will and Periodic Leases – Watch the Timelines
The new Act imposes 20 business days’ notice for at-will leases, and at least one rent period’s notice for periodic tenancies.
- Our insight: Small businesses relying on flexibility (such as cafes testing a new location) must now budget for this longer exit period. We advise factoring this into your business planning—don’t assume you can simply “walk away next week.”
6. Bonds, Bank Guarantees, and Security Deposits
The official guidance confirms there is no legislative requirement for commercial lease bonds to be held in a trust account, unless paid to a licensed agent.
- Our insight: This means tenants paying a bond directly to a landlord should insist on written confirmation of how it will be held. We’ve seen cases where security deposits disappear in insolvency disputes—having this documented can save costly litigation.
Why the Official Pages Were Updated
The Queensland Government updated its business leasing resources on 23 and 26 September 2025 to reflect the new Property Law Act 2023. Specifically:
- “Signing a lease” → updated with consent and assignment rules.
- “Commercial leasing disputes” → updated with prescribed notice forms (Form 7 and 9).
- “Ending a lease” → updated with new termination timelines and make good provisions.
At Ensure Legal, we recommend treating these pages as a baseline, not a complete guide. The real complexity comes when applying these rules to your specific lease.
Ensure Legal’s Advice for Businesses
- Tenants: Do not sign a lease until you understand how the new Act protects (and limits) you. Pay close attention to consent, make good, and bond arrangements.
- Landlords: Update your lease templates, and train your property managers to use the correct statutory forms. Non-compliance can make your notices unenforceable.
- Both parties: If a dispute arises, seek advice early. Mediation and alternative dispute resolution are quicker and cheaper than court, but only work if you follow the statutory process.
Conclusion
The Property Law Act 2023 has rewritten the rules of commercial leasing in Queensland. The Government’s updated web pages highlight the key issues, but practical risks remain high.
At Ensure Legal, we combine legal compliance with commercial insight. Whether you are negotiating a new lease, exiting a tenancy, or resolving a dispute, we ensure you are protected under the new framework.
Contact us today to review your lease and protect your business under Queensland’s new leasing laws.
