The Property Law Act 2023 (Qld) (PLA) is set to commence on 1 August 2025, replacing the longstanding Property Law Act 1974 (Qld). This overhaul introduces significant changes to lease laws, some of which will apply retrospectively to leases entered into before the commencement date. Below, we outline the key updates and their implications for landlords and tenants.
Provisions Applicable to All Leases (Before and After 1 August 2025)
Landlord Consent Requirements
Under the new PLA, landlords must:
- Respond to tenant proposals (e.g., assignment, sublease, alterations, or change of permitted use) within one month of receiving all necessary information.
- Issue a formal decision notice, stating conditions for approval or reasons for refusal.
- Ensure conditions imposed are not unreasonable, unnecessary, or onerous.
Tenant Remedies:
If landlords fail to respond on time, act unreasonably, or impose inappropriate conditions, tenants may apply to the court for relief.
Practical Considerations:
Leases should include specific compensation provisions if landlords seek to claim damages for alterations or changes in use, as these are no longer expressly mandated under the new PLA.
Relief Against Forfeiture
The PLA continues the requirement for landlords to issue a notice to remedy breaches before lease termination. However, new obligations include notifying designated parties (e.g., mortgagees, guarantors, sub-tenants).
Reasonable Time Clarifications:
The court will determine a reasonable remedy period based on the circumstances, including the nature and extent of the breach.
Relief Against Refusal to Renew or Sell
Where a lease includes an option to renew or purchase, landlords must:
- Issue a breach notice to the tenant (and other designated parties) within 10 business days of a breach.
- Follow the breach notice process even for technical deficiencies in option notices.
Tenants may apply for court relief if the refusal relates to breaches or technicalities (e.g., failure to comply with formal requirements). However, the PLA does not provide relief for late submission of option notices.
Provisions Applicable to Leases Signed On or After 1 August 2025
Assignment and Liability Changes
The PLA introduces a release from liability for:
- Original tenants and guarantors after a lease is assigned and subsequently re-assigned.
For retail shop leases regulated by the Retail Shop Leases Act 1994, existing rules still apply, and tenants are released upon assignment (subject to compliance with disclosure requirements).
What This Means for Landlords and Tenants
The new PLA introduces tighter timeframes, procedural safeguards, and updated liability rules. Landlords must revise lease agreements to ensure compliance and protect their interests. Tenants gain new avenues to challenge unreasonable landlord actions.
Next Steps
- Landlords: review your current lease precedents and procedures to align with the PLA.
- Tenants: Familiarise yourself with new rights and protections under the act.
For tailored advice or to prepare for these changes, contact NB Property Law at (07) 3876 5111 to schedule a consultation.