From 1 August 2025, sweeping reforms to Queensland’s commercial leasing laws have officially come into effect under the Property Law Act 2023 (Qld). These changes bring Queensland in line with other states by introducing mandatory landlord-tenant procedures, codified consent rules, and standard lease terms that apply to all agreements — even those signed before the reforms.
For commercial landlords, tenants, agents, and legal advisors, staying on top of these changes is critical. At Ensure Legal, our team helps you understand and act on the new legal landscape.
📌 Summary: The Property Law Act 2023 introduces new legal standards and cannot be opted out of by contract. It applies to most commercial leases, whether new or existing.
📋 Key Changes at a Glance
| Change Area | Old Regime | New Law (from 1 Aug 2025) |
|---|---|---|
| Landlord Consent Process | Informal or varies by contract | Mandatory proposal & decision notice; 1-month deadline; court remedies for tenants |
| Assignment & Reassignment | Original tenant often remains liable post-assignment | Section 144: Automatic release of original tenant & guarantors after re-assignment |
| Sale or Transfer of Landlord | Rent payable upon title registration | Tenant only pays when given written notice of new landlord (Section 141) |
| Exercising Lease Options | Landlords had discretion | Tight timelines; landlords must issue breach notice within 10 business days to object |
| Lease Termination (Breach) | Unregulated notices | Prescribed Form 7 breach notice required; must state remedy steps and notify all parties |
| Periodic & At-Will Lease Termination | Often unclear notice periods | 20 business days for “at-will”; full rent cycle notice for periodic tenancies |
| Standard Lease Terms | Must be negotiated individually | Implied into every lease via Schedule 1, e.g. quiet enjoyment, outgoings, inspections |
🔍 Key Legal Updates Explained
1. Landlord Consent Codified (Section 142)
Tenants must submit a Proposal Notice when requesting consent for actions like:
- Assigning/subletting
- Changing use
- Making improvements
- Mortgaging leasehold
Landlords must respond with a Decision Notice within 1 month. They may request more info, but cannot unreasonably withhold consent. Tenants can apply to court if delayed or denied.
✅ Applies to all leases, regardless of when signed.
2. Assignment = Automatic Release (Section 144)
Once a lease is re-assigned, the original tenant and guarantors are released from further liability.
Section 143 ensures lease obligations are enforceable post-assignment, even if they don’t “touch and concern” the land.
3. Landlord Sale? Tenants Protected (Sections 140–141)
Even if the property is sold, tenants:
- Remain bound by the lease
- Must only pay rent to the new owner after written notice
- Are not bound by title registration alone
4. Tight Rules for Exercising Lease Options (Sections 164–166)
Landlords may only reject a renewal or purchase option if:
- The tenant breached the lease, and
- A breach notice was issued within 10 business days
Affected parties (e.g. guarantors) have 1 month to apply for court relief.
5. New Prescribed Form 7 for Breach Notices (Section 153)
To terminate a lease, landlords must serve a Notice to Remedy Breach that:
- States the breach and remedy
- Provides reasonable time
- May include compensation claims
Form must be served on all ‘designated persons’ (e.g. guarantors, subtenants) under Section 154.
No notice is required for abandonment, but all parties must still be notified before re-entry (Section 156).
6. Updated Termination Rules for Short-Term Leases
- At-will leases: 20 business days’ notice required (Section 174)
- Periodic tenancies: At least one full rent period’s notice (Section 175)
7. Schedule 1: Standard Lease Terms Now Apply
Key terms implied into every commercial lease:
- 💰 Tenant liable for rates & taxes in proportion to leased area
- 🔧 Rent may be reduced during major disruptions (e.g. fire, flood)
- 🛑 Quiet enjoyment rights protected
- 🔍 Landlords can inspect with reasonable notice, but cannot interfere
💼 Why This Matters
Whether you’re a property investor, shopping centre manager, tenant in a medical precinct, or advising clients on commercial leasing:
- Failure to comply with the new statutory process can lead to invalid terminations or unenforceable clauses
- Standard terms may override your negotiated clauses unless specifically excluded
- You now have clearer rights—but also stricter deadlines
📞 Need Legal Support?
Ensure Legal helps landlords, tenants, and property agents navigate Queensland’s new lease laws with confidence.
🔹 Drafting compliant leases
🔹 Reviewing legacy agreements
🔹 Responding to breach or consent disputes
🔹 Managing lease terminations or reassignments
🔹 Representing clients in leasing litigation
