Retail Shop Leases Act QLD: A 2026 Guide for Landlords and Tenants

The Retail Shop Leases Act 1994 (Qld) is one of Queensland’s most important laws governing retail tenancy agreements. Whether you operate a café in Brisbane, own commercial premises on the Gold Coast or lease a retail shop on the Sunshine Coast, understanding this legislation is essential for protecting your business and financial interests.

The Retail Shop Leases Act establishes legal requirements covering lease disclosure, rent reviews, operating expenses, compensation, lease renewals and dispute resolution. It provides important protections for eligible retail tenants while establishing obligations for landlords.

In 2026, the Queensland Government also undertook a review of the legislation to examine whether the existing framework continues to support fair, transparent and efficient retail leasing arrangements.

At Aylward Game Solicitors, our commercial and property law team assists Queensland landlords, tenants and business owners with lease agreements, negotiations, compliance and disputes.

This guide explains how the Retail Shop Leases Act operates, who it protects and what Queensland businesses should understand before entering, renewing or assigning a retail lease.

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What Is the Retail Shop Leases Act 1994 in Queensland?

The Retail Shop Leases Act 1994 (Qld) regulates certain leases of retail premises throughout Queensland. Its purpose includes promoting efficiency and equity in the conduct of retail businesses through minimum leasing standards and a structured dispute resolution framework.

The legislation addresses several important issues:

• Disclosure obligations before entering, renewing or assigning a lease.
• Restrictions on particular landlord charges and expenses.
• Rules governing rent reviews and market rent determinations.
• Rights and obligations relating to lease renewals and assignments.
• Compensation rights in specified circumstances.
• Processes for resolving retail tenancy disputes.

Unlike general commercial leasing arrangements, qualifying retail shop leases receive specific statutory protections that cannot simply be excluded through inconsistent contractual provisions.

Key point: A lease does not have to be labelled a ‘retail shop lease’ for the Act to apply. Its legal classification depends on the premises, business activities and relevant statutory exclusions.

Does the Retail Shop Leases Act Apply to Your Business?

The application of the Retail Shop Leases Act depends on the nature of the premises and the business operating from them.

Under sections 5A to 5D, the Act generally applies to qualifying premises that are used wholly or predominantly for a prescribed retail business or are situated within a retail shopping centre.

However, exclusions and specific conditions apply.

1. Retail Businesses Covered by the Act

Businesses commonly falling within the prescribed retail categories include:

• Cafés, restaurants and takeaway food outlets.
• Clothing and footwear retailers.
• Hairdressing and beauty salons.
• Supermarkets and grocery stores.
• Florists and gift shops.
• Bakeries and certain specialist food retailers.
• Hardware, appliance and flooring retailers.
• Laundries and dry-cleaning businesses.

The relevant business categories appear in Schedule 1 of the Retail Shop Leases Regulation 2016.

A business should not assume it is covered merely because it sells goods or provides services to customers. The precise statutory definition matters.

2. Premises Within a Retail Shopping Centre

A business that is not ordinarily classified as retail may still fall within the legislation if its premises form part of a qualifying retail shopping centre.

Under section 5D, relevant considerations include:

• Whether at least five premises are used for retail businesses.
• The ownership, leasing or community titles arrangements.
• The physical relationship between the premises.
• Whether the complex is promoted or generally regarded as a shopping centre, mall, court or arcade.

Additional exclusions can affect non-retail businesses operating within shopping centres, including the 25% retail-area test in section 5A(3).

3. Premises Excluded From Retail Leasing Protection

The Act generally excludes leases of premises with a floor area of 1,000 square metres or more.

Other exclusions can include certain premises at markets, temporary events and locations specifically identified in the legislation.

Standalone offices, warehouses, medical practices and gyms may also fall outside the Act unless their circumstances satisfy the relevant statutory requirements.

Before signing an agreement, landlords and tenants should confirm whether their proposed lease is governed by the Retail Shop Leases Act or the general law applicable to commercial leasing.

Need help determining your lease classification? Our commercial lease lawyers in Brisbane, Gold Coast and Sunshine Coast can review your premises, proposed business use and lease conditions.

Key Protections Under the Retail Shop Leases Act QLD

The Act introduces several protections intended to improve transparency and reduce unfair or unexpected obligations.

1. Mandatory Retail Lease Disclosure Statements

One of the most significant requirements is the obligation to provide information before a retail lease is entered into.

Under section 21B, a landlord must generally provide a prospective tenant with:

• A draft copy of the proposed lease.
• A prescribed lessor disclosure statement.

These documents must ordinarily be provided at least seven days before the tenant enters into the lease.

The disclosure statement provides information about the premises and relevant leasing arrangements, including applicable costs and obligations.

The Act also imposes disclosure requirements on prospective tenants, subject to specific exceptions. Different requirements can apply to lease assignments and renewals.

In certain circumstances, statutory waiver procedures may apply. Tenants should obtain legal advice before relying on a waiver.

Failure to comply with disclosure requirements may give rise to statutory remedies, depending on the circumstances and applicable time limits.

2. Restrictions on Landlord Charges and Lease Preparation Costs

The Retail Shop Leases Act restricts certain payments that landlords can require from tenants.

For example, section 48 generally prevents a landlord from recovering legal or other expenses associated with preparing, renewing or extending a retail shop lease.

However, the Act contains exceptions, including specified registration and survey costs and certain circumstances where an agreed final lease is prepared but the prospective tenant does not sign.

Section 39 also prohibits landlords from seeking or accepting key money or payments for the goodwill of the tenant’s business, subject to statutory exceptions.

Understanding these rules before signing can help both parties avoid disputes about prohibited charges.

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3. Rent Review Requirements

Rent reviews are a major consideration for retail tenants because increasing rental costs can affect cash flow and long-term business sustainability.

Under section 27, a retail shop lease that provides for rent reviews must specify when they occur and the basis on which rent is reviewed.

The Act generally restricts rent reviews to no more than once each lease year, with an exception concerning the first year.

Permitted review methods may involve:

• Current market rent.
• Consumer price or other qualifying published indices.
• Fixed percentage increases.
• Fixed monetary increases.
• Other methods permitted by the legislation.

Certain provisions that prevent rent from decreasing, commonly called ratchet clauses, may be void under section 36A.

Importantly, special rules and exemptions can apply to qualifying major lessees.

Practical advice: Review every rent adjustment clause before signing, particularly where the agreement combines fixed increases, CPI adjustments and market rent reviews.

For assistance, speak with our Brisbane commercial lease lawyers.

4. Outgoings and Additional Operating Expenses

Rent is not necessarily the only cost associated with occupying retail premises.

Commercial leases may also require tenants to contribute towards permitted operating expenses, commonly called outgoings.

These can involve certain costs associated with maintaining or operating the building or shopping centre.

Sections 37 and 38 govern the recovery and apportionment of outgoings under qualifying retail shop leases.

The Act also establishes requirements for annual estimates and audited statements of apportionable outgoings.

Landlords must generally provide:

• An annual estimate of the relevant apportionable outgoings.
• Details of the proportion payable by the tenant.
• An audited annual statement within three months after the relevant accounting period ends.

The legislation restricts particular costs, including attempts to pass on a landlord’s land tax through provisions inconsistent with the Act.

If a landlord fails to provide a required outgoings estimate or audited annual statement, section 38C may permit the tenant to withhold payments relating to apportionable outgoings until the required document is supplied.

Tenants should obtain advice before withholding payments to ensure the statutory conditions are satisfied.

5. Compensation for Business Disruption

Retail tenants may be entitled to compensation in certain circumstances where a landlord’s actions cause business loss or damage.

Under section 43, compensation may arise where a landlord or someone acting under the landlord’s authority:

• Substantially restricts access to the leased premises.
• Significantly affects customer access or passing trade.
• Causes significant disruption to business operations.
• Fails to address certain maintenance problems within the landlord’s responsibility.
• Causes the tenant to vacate because of specified refurbishment, extension or demolition activities.

Compensation is not automatic whenever business revenue declines.

The tenant must establish a relevant statutory basis and the loss or damage suffered. Exceptions and other requirements may also apply.

Where a business suffers disruption, maintaining written records, financial evidence and correspondence can be particularly important.

Retail Shop Lease Renewals and Options in Queensland

Retail businesses often invest heavily in fit-outs, equipment, branding and customer relationships.

Consequently, uncertainty about lease renewal can create significant commercial risk.

The Retail Shop Leases Act includes requirements relating to renewal disclosure and situations where an existing lease does not contain an option to renew.

Exercising an Option to Renew

Where a lease contains an option to renew, tenants should carefully review:

• The deadline for exercising the option.
• The required form of notice.
• Whether any conditions must be satisfied.
• How rent will be determined for the renewed term.
• Whether a new disclosure statement is required.

Under section 21E, a landlord must generally provide a current disclosure statement within seven days after receiving a tenant’s notice exercising an option to renew, unless a valid statutory waiver applies.

In relevant circumstances, a tenant may withdraw the renewal notice within 14 days after receiving the current disclosure statement.

What Happens if There Is No Renewal Option?

Section 46AA establishes notification obligations for certain fixed-term retail shop leases without an option or other renewal agreement.

The applicable notice requirements depend on the lease and statutory conditions.

A tenant should not assume that continuing to operate the business creates an automatic right to a further lease.

Early advice can help landlords and tenants prepare for negotiations, expiry dates and business relocation.

Assignment and Transfer of a Retail Shop Lease

Selling a retail business frequently involves transferring an existing lease to the purchaser.

This process is called a lease assignment.

Under the Retail Shop Leases Act, assignments involve specific disclosure obligations for the outgoing tenant, incoming tenant and landlord.

The requirements may include:

• Providing the existing lease to the proposed assignee.
• Supplying prescribed disclosure statements.
• Obtaining any required landlord consent.
• Complying with applicable timing and waiver requirements.
• Reviewing guarantees and ongoing liability.

A tenant selling a business should not assume that assigning the lease automatically releases them from every obligation.

The precise operation of statutory release provisions and contractual guarantees should be reviewed before completing the transaction.

Our commercial and business law team can assist with lease assignments, business transactions and associated legal documentation.

Get Ahead with Expert Legal Guidance

Trust Aylward Game Solicitors to Navigate Your Legal Challenges

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Retail Shop Leases Act Review 2026: What Is Changing?

The Queensland Government conducted a review of the Retail Shop Leases Act 1994 during 2026.

The purpose was to assess whether the legislation continues to support fair, transparent and efficient retail leasing arrangements.

The consultation process sought input from landlords, tenants, business owners and other interested stakeholders.

Key Areas Considered in the 2026 Review

The review examined potential improvements involving:

1. The scope of the legislation

Whether the Act’s definitions and exemptions remain appropriate for contemporary retail businesses and shopping centres.

2. Lease disclosure requirements

Opportunities to simplify documentation and reduce unnecessary duplication when leases are entered into, renewed or assigned.

3. Minimum leasing standards

Whether existing rules continue to promote clarity, compliance and fair commercial arrangements.

4. Dispute resolution procedures

Whether the legislative framework supports accessible, proportionate and efficient resolution of retail leasing disputes.

5. Consistency with other legislation

Potential opportunities to improve how the Retail Shop Leases Act operates alongside other Queensland property laws.

Has the Retail Shop Leases Act Changed in 2026?

As at 12 November 2026, the consultation process had closed, but the review itself should not be treated as an enacted amendment to the Retail Shop Leases Act.

The formal written submission period closed on 11 September 2026.

The Government’s published review information indicated that feedback would inform recommendations. No resulting legislative amendments from that review had been identified in the official materials examined for this article.

Landlords and tenants should therefore continue to comply with the legislation currently in force rather than assuming proposed changes have already become law.

The official Queensland Government Retail Shop Leases Act review page provides information about the review.

Retail Shop Leases Act vs General Commercial Leases

Not every commercial lease in Queensland qualifies for the same protections.

The classification of a lease can substantially affect the rights, responsibilities and dispute resolution options available to the parties.

For broader information, read our guide to commercial property lease lawyers in Queensland.

How Are Retail Lease Disputes Resolved in Queensland?

Disagreements may arise over rental payments, repairs, disclosures, lease renewals, outgoings or alleged breaches.

The Retail Shop Leases Act establishes a dispute resolution framework designed to address qualifying retail tenancy disputes.

Step 1: Review the Lease and Relevant Documents

Begin by reviewing the signed lease, disclosure documents, rental statements, notices and relevant correspondence.

Identifying the precise contractual and statutory obligations can clarify the dispute.

Step 2: Attempt Direct Negotiation

Landlords and tenants should generally try to resolve disagreements through direct communication before commencing formal proceedings.

A written proposal setting out the issues and possible solutions may assist.

Step 3: Seek Mediation Through the Queensland Small Business Commissioner

The Queensland Small Business Commissioner (QSBC) provides mediation services for eligible retail tenancy disputes.

Mediation allows parties to discuss the dispute with an independent mediator and explore possible resolutions.

The outcome may be documented in a signed mediation agreement.

Step 4: Consider QCAT Proceedings

Where mediation does not resolve a qualifying retail tenancy dispute, the matter may be referred to the Queensland Civil and Administrative Tribunal (QCAT), subject to jurisdictional and statutory requirements.

Not every commercial lease disagreement falls within QCAT’s retail tenancy jurisdiction.

The classification of the lease, timing of the dispute and relief sought can affect the appropriate process.

Step 5: Obtain Legal Representation Where Necessary

Complex matters may involve substantial financial exposure, termination risks, competing interpretations of lease provisions or questions about statutory compliance.

Legal advice can help determine whether negotiation, mediation or formal proceedings are appropriate.

Aylward Game Solicitors assists commercial clients with contractual disputes, leasing issues and dispute resolution.

Learn more about our commercial litigation and dispute resolution services.

Important Retail Lease Checks Before Signing

Whether you are opening a new retail business, purchasing an existing store or negotiating with a prospective tenant, careful preparation is essential.

Consider the following matters before entering a retail shop lease:

1. Confirm statutory coverage: Determine whether the premises qualify as a retail shop under Queensland law.
2. Review disclosure documents: Check that the required statements are accurate, complete and supplied within applicable timeframes.
3. Calculate occupancy costs: Assess rent, permitted outgoings, fit-out expenses, security and other financial obligations.
4. Examine rent reviews: Understand when rent may change and how future increases or market reviews are calculated.
5. Check permitted use: Confirm that the lease allows the intended business activities.
6. Review renewal rights: Understand option dates, notice requirements and expiry provisions.
7. Consider exit obligations: Examine assignment rights, termination clauses, personal guarantees and make-good requirements.
8. Obtain legal advice: Have a Queensland commercial leasing lawyer review the proposed agreement before making binding commitments.

A carefully negotiated lease can reduce uncertainty and help protect both the commercial value of the property and the financial stability of the business.

How Aylward Game Solicitors Can Help With Retail Shop Leases

Retail leasing can involve complex interactions between commercial objectives, contract terms and statutory requirements.

At Aylward Game Solicitors, our commercial and property law team provides practical legal assistance to landlords, tenants, property owners and business operators across Brisbane, Gold Coast and Sunshine Coast.

Our services include:

• Drafting and reviewing retail shop lease agreements.
• Advising on Retail Shop Leases Act compliance.
• Reviewing disclosure statements and lease documentation.
• Negotiating rental provisions and commercial lease terms.
• Assisting with lease renewals, assignments and transfers.
• Advising on disputes involving outgoings, repairs and rent.
• Assisting with commercial negotiations and mediation.
• Providing representation in appropriate dispute resolution proceedings.

Our founder, Mark Game, practises in property, commercial law, litigation and banking and finance matters, bringing commercial experience to leasing and business-related legal issues.

Whether you are leasing your first shop or managing an established commercial property portfolio, timely legal advice can help you understand your obligations and make informed decisions.

Speak With a Queensland Retail Lease Lawyer

Need advice about the Retail Shop Leases Act in Brisbane, Gold Coast or Sunshine Coast?

Aylward Game Solicitors can assist with reviewing proposed agreements, understanding statutory obligations and resolving commercial leasing disputes.

Brisbane: 07 3236 0001

Gold Coast: 07 5655 4474

Sunshine Coast: 1800 217 217

Contact Aylward Game Solicitors to discuss your retail leasing matter.

Get Ahead with Expert Legal Guidance

Trust Aylward Game Solicitors to Navigate Your Legal Challenges

Schedule Your Appointment Now

Call Us (1800) 217 217

Frequently Asked Questions About the Retail Shop Leases Act

What is the Retail Shop Leases Act in Queensland?

The Retail Shop Leases Act 1994 (Qld) regulates qualifying retail tenancy agreements in Queensland. It establishes requirements for lease disclosures, rent reviews, outgoings, compensation and dispute resolution.

Does the Retail Shop Leases Act apply to all commercial leases?

No. The legislation generally applies to qualifying retail businesses and premises within defined retail shopping centres, subject to statutory exclusions. Many offices, warehouses and industrial premises fall outside its scope.

What is the seven-day disclosure rule for a retail lease?

Under section 21B, a landlord must generally provide a prospective retail tenant with a draft lease and disclosure statement at least seven days before entering into the lease. Specific statutory waiver arrangements may apply in certain circumstances.

Can a landlord increase rent every year in Queensland?

A retail shop lease may provide for annual rent reviews, but the timing and method must comply with the Retail Shop Leases Act. The Act generally restricts rent reviews to once per lease year, subject to exceptions.

Who pays the legal fees for a retail shop lease?

Section 48 generally prohibits a landlord from requiring a tenant to pay the landlord’s legal expenses for preparing, renewing or extending a retail shop lease. Certain statutory exceptions apply, including specified registration costs and particular unsigned final-lease situations.

Can a retail tenant terminate a lease early?

A tenant may be able to terminate a retail lease where the agreement provides an applicable right, the landlord agrees to a surrender, or a relevant statutory or legal ground exists. There is no general automatic right to exit simply because the business is unprofitable.

Can a retail tenant claim compensation from a landlord?

In certain circumstances, yes. The Act provides compensation rights for specified business disruption and other statutory grounds. Eligibility depends on the circumstances, evidence of loss and relevant legal requirements.

What happens when a retail shop lease expires?

The outcome depends on the lease, any renewal options, notices given and applicable statutory requirements. A tenant does not automatically receive a new lease merely because they wish to remain in the premises.

Where can I resolve a retail lease dispute in Queensland?

Eligible retail tenancy disputes can be referred to the Queensland Small Business Commissioner for mediation. Unresolved qualifying disputes may proceed to QCAT where its jurisdictional requirements are satisfied.

Has the Retail Shop Leases Act been amended in 2026?

The Queensland Government undertook a legislative review in 2026, with formal written submissions closing on 11 September 2026. The review did not itself change the law. Landlords and tenants should check the current legislation for any subsequent amendments.

Do I need a lawyer before signing a retail shop lease?

Legal representation is not universally compulsory simply because a person signs a retail lease. However, independent legal advice is strongly recommended, and particular statutory waiver procedures can require a legal advice report.

Where can I find retail lease lawyers in Brisbane?

Aylward Game Solicitors assists Brisbane and wider South East Queensland clients with retail and commercial leasing matters, including lease reviews, negotiations, disputes and compliance with applicable Queensland legislation.