Retail Shop Lease Disputes in Queensland: What To Do When a Landlord Overcharges Outgoings or Issues a Misleading Disclosure Statement

1. What the Law Requires: Clear, Accurate Disclosure Before You Sign

Before a retail tenant enters into a lease, the landlord must give a Lessor Disclosure Statement that truthfully and accurately sets out:

• all outgoings the tenant must pay
• how those outgoings are calculated
• estimates for the current year
• details of the building, services, fit-out obligations and trading restrictions
• whether any renovations are planned
• any other costs the tenant will be required to contribute to

This is not optional. It is a statutory requirement under the Retail Shop Leases Act 1994 (Qld).

If the Lessor Disclosure Statement is materially false, incomplete or misleading, the tenant may have powerful remedies — even if the lease has already commenced.

2. Overcharging Outgoings: The Most Common Retail Shop Lease Dispute

Outgoings must be:

• properly disclosed
• calculated in accordance with the lease
• supported by annual statements that meet the accounting standards required by the RSL Act

Common examples of unlawful overcharging include:

• charging for costs that were never disclosed in the Lessor Disclosure Statement
• inflating percentages beyond what the lease permits
• passing through landlord-only expenses (capital works, structural repairs, financing costs)
• failing to provide audited annual outgoings statements
• charging for items that benefit other tenants but not the paying tenant

Many landlords either misunderstand their obligations or take shortcuts. In some cases, the conduct is deliberate.

3. Misleading or False Disclosure Statements: Your Right to Terminate

If a tenant enters into a retail shop lease based on a misleading or incomplete Lessor Disclosure Statement, the RSL Act allows the tenant to:

• terminate the lease within the first 6 months, and
• claim compensation for loss and damage,

where the landlord’s non-compliance caused the tenant to enter into the lease.

This can include situations where:

• outgoings were presented incorrectly or materially understated
• the landlord failed to disclose major expenses
• the tenant was misled about the true cost of occupation
• renovation works or building defects were concealed
• essential information about the premises was withheld

The law is designed to protect small businesses from entering into leases on false pretences.

4. Case Study (Anonymised): Tenant Overcharged Thousands After Misleading Disclosure

Boss Lawyers recently acted for a tenant in a Queensland shopping centre who discovered that the landlord:

• provided a Lessor Disclosure Statement that materially understated outgoings
• failed to include mandatory items such as sinking fund contributions and centre-wide costs
• issued outgoings invoices that could not be substantiated
• refused to provide audited outgoings statements
• had already charged the tenant for costs the tenant was never liable for

The tenant had paid all outgoings on time, in good faith, for over a year. When the discrepancies became clear, we sought:

• urgent mediation through the Queensland Small Business Commissioner
• full reconciliation of all outgoings charged to date
• termination of the lease based on misleading disclosure
• refund of the tenant’s bond
• compensation for loss suffered as a result of the landlord’s conduct

This scenario is far more common than most tenants realise.

5. Early Termination: When Can a Tenant Get Out of a Retail Lease?

A retail tenant may be able to legitimately exit a lease where:

• the Lessor Disclosure Statement was defective or misleading
• the landlord has engaged in misleading or deceptive conduct
• outgoings were materially understated at the outset
• substantial breaches of the RSL Act have occurred
• the landlord failed to give an audited outgoings statement
• rent or outgoings were demanded in breach of the lease
• the landlord engaged in harsh, oppressive or unconscionable conduct

Even if six months have passed, other remedies may still be available under:

• the Australian Consumer Law (ACL)
• misleading and deceptive conduct provisions
• common law rescission
• contractual breach and equitable remedies

6. What Tenants Should Do Immediately

If you suspect the landlord has misled you or overcharged you for outgoings under a retail shop lease in Queensland, you should act quickly.

Step 1: Gather Your Documents

Collect your lease, Lessor Disclosure Statement, outgoings schedules, invoices and any relevant correspondence. These documents form the evidentiary basis of your claim.

Step 2: Request Substantiation in Writing

Under the RSL Act, the landlord must provide audited and itemised outgoings statements. Put your request in writing and ask for supporting documentation for each category of outgoing.

Step 3: Do Not Stop Paying Rent Without Advice

Unilaterally withholding rent or outgoings, even if you believe you are being overcharged, can expose you to a lock-out or termination. Get advice first.

Step 4: Seek Legal Advice Early

The sooner a tenant acts, the greater the available remedies — especially where the six-month termination window may apply for misleading Lessor Disclosure Statements.

7. Why Tenants Engage Boss Lawyers for Retail Shop Lease Disputes

Boss Lawyers regularly acts for retail tenants across Queensland and has extensive experience in:

• retail shop lease disputes
• misleading Lessor Disclosure Statement claims
• outgoings audits and recovery of overpayments
• premature termination and compensation claims
• statutory mediation through the Queensland Small Business Commissioner
• disputes involving aggressive, unreasonable or non-compliant landlords

We combine commercial litigation experience with deep knowledge of the Retail Shop Leases Act 1994 (Qld) — and we act quickly when a tenant is being treated unfairly.

If your dispute also involves broader corporate issues, director misconduct or a breakdown between business partners, our director and shareholder disputes team can assist with the bigger picture strategy.

Frequently Asked Questions About Retail Shop Lease Disputes in Queensland

Can I terminate my retail shop lease if the Lessor Disclosure Statement was wrong?

In many cases, yes. If the Lessor Disclosure Statement was materially false, incomplete or misleading and this caused you to enter into the lease, you may be entitled to terminate the lease within the first six months and claim compensation. You should obtain legal advice urgently because strict time limits apply.

What if I only found out about overcharged outgoings years later?

You may still have rights to recover overpaid outgoings or pursue other remedies under the Australian Consumer Law or general contract principles. An outgoings audit and legal review can help quantify the claim and identify your options.

Do I have to go to court to resolve a retail lease dispute?

Not always. Retail tenancy disputes in Queensland often proceed first through mediation with the Queensland Small Business Commissioner. Many disputes resolve at this stage. If mediation is unsuccessful, court or tribunal proceedings may be required.

Need Advice About a Retail Shop Lease Dispute?

If you believe your landlord has misled you or overcharged outgoings under a retail shop lease in Queensland, you should not delay. Strict timeframes apply — and early intervention can significantly improve your legal position.

Contact Boss Lawyers for confidential advice about your retail shop lease dispute.

This article is general information only and does not constitute legal advice. You should obtain advice tailored to your specific circumstances.