top of page

Modernising Lease Law in Queensland: What You Need to Know

From 1 August 2025, Queensland’s lease laws are changing with the introduction of the new Property Law Act 2023.


The new Act, which will replace the 50-year-old Property Law Act 1974, is designed to make leasing clearer, fairer, and better suited to modern commercial leasing practices in Queensland.


ree

Key Changes Explained


Lease Terms Stay with the Lease


  • Lease rights and obligations (including covenants) will stay in place even if the lease is assigned or the property changes hands.

  • Some exceptions apply, for example some lease terms can be made "personal" or excluded from assignment if the lease says so, or if both parties agree.

  • Landlords are still responsible for any breaches that happened before they sold or transferred the property.


Getting Consent to Assign


  • If a tenant wants to assign (transfer) their lease, the landlord now has one month to respond to the request (up from 14 days).

  • If the landlord takes too long or refuses without a good reason, tenants can apply to the court.


Liability After Assignment


  • Once a tenant assigns their lease and it is re-assigned again, they (and their guarantors) are fully released from liability for anything that happens after. This applies even if the lease says otherwise.

  • Standard assignment documents may need updating to reflect this change.


Forfeiture and Breach Process


  • Landlords must give tenants a formal “notice to remedy breach” before ending a lease or taking back the property.

  • This notice must also go to others with an interest (like mortgagees, receivers, guarantors, subtenants, and former tenants) in the lease.

  • If a tenant abandons the premises, landlords don’t have to give a breach notice but must still notify all interested parties before re-entering.


Options and Breach Notices


  • If a tenant is at risk of losing an option to renew, extend or buy because of a breach, the landlord must issue a breach notice within strict timeframes.

  • Tenants then have one month to ask the court for relief, even if their option notice was late (but not never given).


Terminating Leases


  • For leases that can be ended "at will" (where there's no agreement for the tenant to stay longer), there is now a 20 business day notice period before termination of the lease.

  • Different rules apply for periodic leases (such as when a tenant is holding over after their lease ends).


Implied Lease Terms Modernised


  • The Act brings together and updates all the standard lease terms in one place (Schedule 1). These can be changed or removed if both parties agree.

  • Outdated requirements (like rules about painting, fencing, or cultivation) have been dropped.


What Should Landlords Do?


Review your current lease agreements to make sure they comply with the new Act keeping in mind some rules cannot be excluded by contract.


For clear, practical advice on how these changes might affect you or your business, get in touch with our team.


Richard Waring, Director

(07) 3307 4545


(07) 3307 4542


Vicky Stott, Senior Associate

(07) 3307 4509


(07) 3307 4524


Lauren Keats, Paralegal

(07) 3307 4535


 
 
 

© 2023 by Shand Taylor Lawyers Pty Ltd. Proudly created with Wix.com

bottom of page