New Lease Reforms Under Queensland’s Property Law Act 2023 – What Landlords and Tenants Need to Know

The Property Law Act 2023 (Qld) (“New PLA”) commenced on 1 August 2025, overhauling Queensland’s property law regulation.

Below, we outline some of the reforms and what these will mean in practice for landlords and tenants moving forwards.  

Key Changes for Landlords

Transfers of Property

When ownership of leased property changes, all lease rights and obligations automatically transfer to the new owner. There is no requirement to specifically assign an existing lease to the new property owner. This is a departure from the previous position where only those covenants which “touched and concerned the land” would transfer to the new owner.

The outgoing landlord remains liable for breaches before transfer, while the incoming landlord takes on future responsibilities. All rights and obligations are enforceable from the moment the property ownership transfers.

• Buyers need to check for covenants marked “personal” or clauses which are specifically excluded from assignments, which won’t transfer.

• Buyers and Sellers can agree between them that the Seller can keep the benefit of some of the lease terms, such as the right to recover rental arrears for the period prior to the sale.

Purchasers of commercial property should ensure they have properly read and understood their obligations under any existing lease prior to purchase.

Consent to Lease Dealings

Landlords can no longer unreasonably refuse tenant requests to assign or sublet. Even if a lease says otherwise, landlords must:

• respond within one month
• give reasons for any refusal
• only impose reasonable conditions.
  

A landlord’s failure to comply or where the tenant considers the landlord has acted unreasonably, can see tenants apply to the court to decide the matter.

The landlord can ask for more information if needed. 

Parties can’t contract out of this rule.

Enforcement and Termination

The New PLA tightens termination rights:

• There is a new prescribed form for breach notices which must be used by Landlords seeking a right to terminate a lease for a tenant’s default
• Breach notices must also now go to guarantors, subtenants, and mortgagees, though failing to do this doesn’t cancel the Landlord’s right of termination 
• Accepting rent after a breach notice is given does not otherwise waive a landlord’s termination rights.
  

Damages for failure to complete Works

If a Tenant breaches an obligation to keep or put the premises in good repair during the lease term or at its end, damages that can be awarded will not be more than the lower of the actual cost to remedy the breach, or the reduction in property value caused by the breach.

Damages may not be awarded if the premises is subsequently demolished.

Options and Renewals

If a tenant exercises an option to renew, landlords cannot refuse to grant the option unless they first comply with the updated notice rules in the New PLA.

Landlords will have 10 business days after receiving a tenant’s exercise of option to notify the Tenant of any intention not to grant the option because of a breach, by issuing a notice in the prescribed form setting out the details of the breach.

If a Tenant’s breach occurred after its option exercise notice is given, then the Landlord will have 10 business days after a breach has occurred to give the notice.

Landlords must use the prescribed form, which must be compliant with section 164 of the New PLA.

The Landlord may only refuse the Tenant’s option if a compliant notice is given, failure to use the prescribed form or issue the notice within the required period will waive any right Landlord may have to refuse an option.

As was previously the case, Tenant’s may apply to the court for relief against the refusal of an option, and the court may decide to give relief depending on the circumstances.

The Landlord must give the prescribed notice to all subtenants, guarantors and mortgagees as well as the tenant, and those parties may also apply for relief against refusal.

Key Changes for Tenants

Protection on Transfers

If tenants pay rent to their landlord before being told about a property transfer, the New PLA confirms that they don’t have an obligation to pay the new owner that rent. Simply registering the new owner’s title isn’t enough notice to the tenant.

Assignments and Liability

When a lease is assigned, the new tenant takes over all the rights and responsibilities of the old tenant, unless the lease or an agreement says otherwise, or the terms are expressly personal to the original tenant. This is a change to the circumstances under the previous Act where assignees were only bound by covenants that “touched and concerned the land”.

The New PLA also introduces the concept, that once a lease has been assigned twice, the original tenant and guarantor are automatically released from liability. This cannot be contracted out of.

Standard Lease Terms

Unless the Lease contains an agreement to the contrary (or unless contrary to any other Act, such as the Retail Shop Leases Act or the Residential Tenancies Act), every lease now includes standard terms, including:

1. Rent is payable when due;
2. Outgoings are payable proportionate to the area of the tenancy compared to the size of the property;
3. Lessee to keep the premises in good condition and return it in at least the same condition, subject to fair wear and tear, natural disaster, or other Lessor insured risks;
4. Rent abates when premises are unusable;
5. Tenant’s entitlement to quiet enjoyment;
6. Landlord’s power to inspect and right of entry for repairs;
7. Termination procedures; and
8. Requirement for tenants to remove their fixtures.
   

Relief against forfeiture or refusal of option

Guarantors and subtenants are now also entitled to challenge a landlord’s attempt to end a lease, though only tenants and mortgagees can dispute a landlord’s refusal to grant a renewal or option.

How These Changes Affect You

Landlords and tenants will benefit from more transparent processes, while landlords gain certainty on matters like notice periods.

Landlords who use a standard form of lease for their properties should review those documents to ensure their terms are not in conflict with the new rules.

Tenants should ensure they understand their new rights when dealing with Landlords. 

As always, when in doubt, seeking legal advice is advisable, the New PLA is comprehensive, and understanding its nuances and how it interacts with other legislation is key to leveraging its protections or enforcing rights effectively. With the commencement date now passed, all landowners and tenants should have the New PLA front of mind in their leasing transactions, including renewals and variations.