Key Takeaways
- Commercial lease disputes in Queensland are governed by the Property Law Act 2023 (Qld), which commenced 1 August 2025, together with general contract law principles.
- The Retail Shop Leases Act 1994 (Qld) applies only to retail shop leases. Most office, industrial, and commercial premises fall outside it.
- Landlords cannot lawfully re-enter or lock out a tenant without first serving a valid notice to remedy breach and, in most cases, obtaining a court order.
- The Queensland Small Business Commissioner (QSBC) offers free mediation for eligible leasing disputes under the Small Business Commissioner Act 2020 (Qld).
- Urgent injunctive relief is available through the Supreme Court of Queensland where a lockout or serious breach threatens irreparable loss. The court applies the test from Australian Broadcasting Corporation v O’Neill (2006) 227 CLR 57.
A commercial lease dispute in Queensland can stop your business in its tracks. Whether you are a tenant facing a lockout, a landlord chasing rent arrears, or either party fighting over make-good obligations at the end of a lease, this guide explains the legal framework, the most common disputes, the remedies available to tenants and landlords, and when to get a commercial litigation lawyer involved.
What Is a Commercial Lease Dispute?
A commercial lease dispute arises when a landlord and tenant disagree about the terms, performance, or termination of a commercial lease agreement. Commercial leases cover a wide range of premises including offices, warehouses, industrial units, medical suites, showrooms, and properties used for mixed commercial purposes.
Disputes typically fall into one or more of these categories:
- Rent arrears and default: The tenant fails to pay rent on time or at all.
- Make-good obligations: Disagreement about what condition the tenant must return the premises at the end of the lease.
- Rent review disputes: The parties cannot agree on the outcome of a market rent review or CPI adjustment.
- Outgoings disputes: Arguments over which outgoings the tenant is required to contribute to, and how they are calculated.
- Lockout or unlawful re-entry: A landlord purports to re-enter the premises without following the correct legal process.
- Option and renewal disputes: A tenant exercises an option but the landlord disputes whether the option was validly exercised, or the parties cannot agree on the new rent.
Each type of dispute carries different legal consequences and calls for a different strategic response. Getting the wrong advice early can cost you the case, or cost you your lease.
The Legal Framework in Queensland
Property Law Act 2023 (Qld)
Queensland’s property law landscape changed significantly on 1 August 2025, when the Property Law Act 2023 (Qld) commenced and replaced the former Property Law Act 1974 (Qld). The 2023 Act modernises and consolidates Queensland’s property law, including provisions relevant to commercial leases such as the implied covenant for quiet enjoyment, landlord and tenant obligations, and rules around forfeiture and re-entry.
General commercial leases are primarily governed by:
- The express terms of the lease agreement itself
- General contract law (including the law of breach, termination, and damages)
- The Property Law Act 2023 (Qld) for implied covenants and statutory protections
Retail Shop Leases Act 1994 (Qld): Is Your Lease Covered?
The Retail Shop Leases Act 1994 (Qld) applies to retail shop leases as defined in that Act. Broadly, this covers leases of premises used predominantly for the retail sale of goods or services to the public, in certain shopping centres or where the lettable area is under 1,000 square metres. If your lease is a retail shop lease, there are additional mandatory disclosure obligations, prohibited lease terms, and a compulsory mediation process through the QSBC before court proceedings can commence (for most disputes).
If your lease is not a retail shop lease, for example an office on its own title, a warehouse, or a commercial premises used for purposes other than retail, the Retail Shop Leases Act does not apply. Your rights and obligations are determined entirely by the lease agreement and the general law, including the Property Law Act 2023 (Qld).
This distinction matters enormously. Tenants in retail shop leases have statutory protections that general commercial tenants do not automatically enjoy. If you are unsure which regime applies to your lease, get legal advice before taking any steps.
Contract Law Principles
Regardless of which statutory framework applies, commercial leases are contracts. That means the ordinary principles of contract law govern how the lease is interpreted, how breaches are assessed, and what remedies flow from them. Courts will read the lease as a whole, give words their ordinary commercial meaning, and apply established principles around implied terms, waiver, estoppel, and election where relevant.
The 6 Most Common Commercial Lease Disputes in Queensland
| Dispute Type | Key Issues | Legal Path |
|---|---|---|
| Rent Arrears and Default Notices | Tenant falls behind on rent. Landlord must serve a formal default or notice to remedy breach before taking further action. The notice must comply strictly with the lease terms and the Property Law Act 2023 (Qld). | Debt recovery, District Court or Supreme Court depending on amount |
| Make-Good Obligations | At the end of the lease, the tenant is required to return the premises in a specified condition. Disputes arise over the scope of required works, the cost, and whether fair wear and tear reduces obligations. | Negotiation, expert assessment, civil claim for damages |
| Outgoings Disputes | The lease requires the tenant to pay a proportion of outgoings (rates, insurance, maintenance). Disputes arise over what is properly an outgoing, the correct proportions, and landlord failure to provide reconciliation statements. | Audit of outgoings, negotiation, debt recovery or injunction |
| Rent Review Disagreements | Market rent review mechanisms require an independent valuer if the parties disagree. CPI review disputes typically turn on which index applies and calculation methodology. Errors in the review process can be challenged. | Valuation arbitration, contract interpretation proceedings |
| Unlawful Lockout or Re-Entry | A landlord physically excludes the tenant or changes locks without following the proper legal process. This can constitute an unlawful act entitling the tenant to damages and urgent injunctive relief. | Urgent Supreme Court injunction; damages claim |
| Option Renewal Disputes | Tenant claims the option was properly exercised; landlord denies it. Or the parties agree the option was exercised but cannot agree on the rent for the renewed term. Strict compliance with notice requirements is essential. | Contract interpretation, rent determination, injunction to restrain re-letting |
Landlord Remedies for Tenant Default
When a tenant is in breach of a commercial lease, the landlord has several potential remedies. The correct sequence and the strength of each remedy depends on what the lease says and how the breach has unfolded.
Notice to Remedy Breach
Before the landlord can terminate the lease or re-enter the premises, the landlord must generally serve a valid notice to remedy breach. The notice must identify the breach, specify the period within which it must be remedied, and comply with any requirements in the lease and the Property Law Act 2023 (Qld). Failure to serve a compliant notice can invalidate the purported termination entirely.
Re-Entry Rights
Forfeiture and re-entry is a serious step. The Property Law Act 2023 (Qld) contains provisions requiring landlords to follow strict procedures before physically re-entering commercial premises. In most circumstances, a landlord must obtain a court order before physically re-entering if the tenant remains in possession. A landlord who re-enters unlawfully exposes themselves to a damages claim and risks the court granting relief against forfeiture to restore the tenant to possession.
Debt Recovery
Unpaid rent and outgoings can be pursued as a debt. Depending on the amount, claims are brought in the Magistrates Court (under $150,000), District Court (under $750,000), or Supreme Court. Where the tenant has vacated, the landlord also has a duty to mitigate loss by taking reasonable steps to re-let the premises.
For advice on pursuing unpaid commercial debts, see our guide on debt recovery in Brisbane.
Damages
A landlord who terminates a lease for tenant default may claim damages for loss of future rent, re-letting costs, make-good costs, and other reasonably foreseeable losses arising from the breach. The landlord must still mitigate. Claims for anticipated future loss can be significant in long-term commercial leases.
Tenant Remedies When a Landlord Breaches the Lease
Tenants often assume they are in a weaker position than landlords, but that is not the case where the landlord is in breach. Tenants have real and enforceable rights.
Quiet Enjoyment
Every commercial lease contains an implied covenant for quiet enjoyment. This covenant, recognised under both the common law and the Property Law Act 2023 (Qld), requires the landlord to allow the tenant to use and enjoy the premises without substantial interference. Interference with a tenant’s business operations, repeated entry without notice, failure to maintain essential services, or allowing the premises to fall into disrepair can all constitute breaches of this covenant.
Specific Performance
Where the landlord is obliged to carry out works or provide services under the lease and refuses to do so, a tenant can seek an order for specific performance compelling the landlord to comply. Courts will grant specific performance of clear lease obligations where damages would be an inadequate remedy.
Damages
A tenant who suffers loss because of a landlord’s breach, including disrupted business operations, the cost of relocating, or reduced trading revenue caused by the landlord’s failure to maintain the premises, can claim damages. The losses must be proved and must flow naturally from the breach.
Urgent Injunction
Where a landlord purports to lock the tenant out, threatens to do so, or takes other urgent steps that threaten the tenant’s business, the tenant can apply to the Supreme Court of Queensland for an urgent injunction. This is one of the most powerful tools available in a commercial lease dispute and can be obtained within hours if necessary. See the section on going to court below.
Our commercial litigation team in Brisbane regularly acts for both tenants and landlords in urgent injunction applications.
QSBC Mediation: Is It Compulsory?
The Queensland Small Business Commissioner (QSBC) operates a free mediation service for small business leasing disputes under the Small Business Commissioner Act 2020 (Qld). This service is available to eligible small businesses involved in leasing disputes, including general commercial lease disputes as well as retail shop leases.
When QSBC Mediation Applies
QSBC mediation is voluntary for most general commercial lease disputes. Either party can request mediation and the QSBC will attempt to facilitate a resolution. The process is faster and cheaper than litigation, and settlements reached in mediation are binding if documented correctly.
For disputes covered by the Retail Shop Leases Act 1994 (Qld), mediation through the QSBC (or the former process) is generally required before court proceedings can commence. Skipping this step can result in proceedings being stayed.
When to Go Straight to Court
There are circumstances where mediation is not appropriate and court proceedings should commence immediately:
- The landlord has already locked the tenant out or is about to do so
- There is an urgent risk of irreparable business damage
- The other party refuses to engage in any mediation process
- The lease is about to expire and there is a dispute about the option renewal that requires urgent determination
- Enforcement of a court order is required
Attempting mediation in these circumstances can waste critical time. A commercial litigation lawyer will advise you whether to pursue mediation or move straight to court.
When to Go to Court
Which Court Handles Commercial Lease Disputes in Queensland?
- QCAT (Queensland Civil and Administrative Tribunal): For retail shop lease disputes under the Retail Shop Leases Act 1994 (Qld) where mediation has failed. QCAT can determine both monetary disputes and disputes about non-monetary obligations for retail tenants.
- Magistrates Court: For debt claims up to $150,000.
- District Court: For claims up to $750,000.
- Supreme Court of Queensland: For claims over $750,000, for urgent injunctions, and for complex commercial disputes involving interpretation of lease terms or equitable relief.
Urgent Injunctive Relief
Where a tenant has been locked out or a landlord is about to act in a way that will cause irreparable harm to the tenant’s business, an urgent interlocutory injunction can be sought in the Supreme Court of Queensland. The court applies the test from Australian Broadcasting Corporation v O’Neill (2006) 227 CLR 57, which requires the applicant to establish:
- There is a serious question to be tried, meaning the applicant has an arguable case.
- The balance of convenience favours granting the injunction, meaning the harm from refusing the injunction outweighs the inconvenience to the respondent.
- The applicant provides an undertaking as to damages, meaning the applicant will compensate the respondent if the injunction is ultimately found to have been wrongly granted.
Applications can be made on an urgent basis, sometimes the same day. Acting quickly is critical, as delay can undermine the strength of an injunction application.
If you are facing a lockout or urgent lease dispute, contact our team immediately. Commercial disputes that require court intervention are handled by our Brisbane litigation team.
Termination and Contractual Disputes
If you need to understand when and how a commercial contract (including a lease) can be terminated, see our detailed guide: How to Terminate a Commercial Contract in Queensland.
5 Mistakes Tenants and Landlords Make in Commercial Lease Disputes
After acting in many commercial lease disputes, these are the mistakes I see most often, from both sides of the table:
-
Acting on a defective notice. Landlords who serve a notice to remedy breach that does not comply strictly with the lease or the Property Law Act 2023 (Qld) often find their purported termination is invalid. A tenant who vacates on the back of a defective notice may also have a claim. Read the notice carefully before doing anything.
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Changing locks without a court order. This is the most serious and most avoidable mistake a landlord can make. A landlord who physically excludes a tenant from the premises without following the correct process exposes itself to an urgent injunction application, reinstatement of the tenant, and a significant damages claim. The commercial cost of getting this wrong far exceeds the cost of doing it right.
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Missing option exercise deadlines. Options to renew must be exercised strictly in accordance with the lease, including by the date and in the manner specified. Courts have historically refused to grant relief where a tenant has missed an option deadline, even by a small margin. Diary these dates well in advance and do not assume the landlord will remind you.
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Ignoring the make-good clause during the lease. Make-good obligations are often not considered until the lease is about to end. By then it is too late to document the original condition of the premises, negotiate the scope of required works, or plan the exit properly. Tenants should review the make-good clause at the start of the lease and again 12 months before expiry.
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Negotiating without legal advice. Parties who negotiate lease disputes directly, whether about arrears, make-good, or termination, without legal advice frequently concede rights they did not know they had, or make admissions that come back to hurt them in later proceedings. An initial consultation with a commercial lease lawyer is a small investment compared to the cost of a dispute that escalates unnecessarily.
Talk to a Commercial Lease Dispute Lawyer in Brisbane
Boss Lawyers acts for tenants and landlords in commercial lease disputes across Brisbane and Queensland. Whether you are facing a lockout, pursuing rent arrears, fighting a make-good claim, or trying to enforce an option to renew, our team provides direct, practical advice on your legal position and the most effective path forward.
We handle urgent injunction applications, commercial lease negotiations, QSBC mediation, and Supreme Court and District Court proceedings. Our focus is on resolving disputes efficiently, and where resolution is not possible, on achieving the best outcome for our clients.
Call us on 1300 267 711 or contact our commercial litigation team online.
Frequently Asked Questions
Can a landlord lock me out of commercial premises in Queensland?
A landlord cannot lawfully lock a tenant out of commercial premises without first following the correct legal process, which includes serving a valid notice to remedy breach and, in most circumstances, obtaining a court order. A landlord who changes locks without following this process may be acting unlawfully and the tenant can apply to the Supreme Court for an urgent injunction to be reinstated to the premises.
What is the Property Law Act 2023 (Qld) and how does it affect my lease?
The Property Law Act 2023 (Qld) commenced on 1 August 2025 and replaced the Property Law Act 1974 (Qld). It is the primary legislation governing property law in Queensland, including provisions relevant to commercial leases such as implied covenants (including quiet enjoyment), rules about forfeiture and re-entry, and landlord and tenant obligations. If your lease was entered into before August 2025, it is still subject to the new Act from the commencement date.
Does the Retail Shop Leases Act apply to my commercial lease?
The Retail Shop Leases Act 1994 (Qld) applies only to retail shop leases as defined in that Act. Broadly, this covers leases of premises used predominantly for the retail sale of goods or services, typically within shopping centres or where the lettable area is under 1,000 square metres. Office leases, warehouse leases, and most other commercial leases fall outside the Retail Shop Leases Act and are governed by the general law and the Property Law Act 2023 (Qld).
Is QSBC mediation free, and do I have to do it before going to court?
The Queensland Small Business Commissioner (QSBC) provides free mediation for eligible small business leasing disputes under the Small Business Commissioner Act 2020 (Qld). For most general commercial lease disputes, QSBC mediation is voluntary and not compulsory. For retail shop lease disputes under the Retail Shop Leases Act 1994 (Qld), mediation is generally required before court proceedings can commence. If there is an urgent risk of lockout or irreparable loss, you may need to go directly to court without waiting for mediation.
What is a make-good obligation in a commercial lease?
A make-good obligation is a clause in a commercial lease that requires the tenant to return the premises to a specified condition at the end of the lease. The scope of make-good obligations varies significantly between leases. Some require full restoration to the condition at lease commencement (excluding fair wear and tear), while others require only the removal of tenant fit-out. Disputes over make-good are common, particularly where the original condition of the premises was not clearly documented at the start of the lease.
Disclaimer: This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
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