What protections do retail tenants have under Queensland law?

Not all commercial leases are created equal. In Queensland, the Retail Shop Leases Act 1994 (the “Act”) provides an extra layer of protection for “mum and dad” businesses and most shops found in shopping centres or street-front retail strips.

1. Does the Act Apply to You?

The Act generally applies if:

• The premises are used for a retail business (selling goods or services to the public).
• The premises are located in a retail shopping centre (usually a building with 5 or more retail shops).
• The shop is less than 1,000 square metres.

2. Mandatory Disclosure Statements

Before you sign a retail lease, the landlord must provide you with a Lesser Disclosure Statement at least 7 days in advance.

• This document lists every cost you will be liable for, including rent, outgoings, and fit-out costs.
• If the landlord provides false or misleading information in this statement, you may have the right to terminate the lease or claim damages.¹

3. Financial Protections

The Act bans several common (and often unfair) commercial leasing practices:

• No Land Tax: Landlords cannot pass land tax on to retail tenants.
• No Ratchet Clauses: As mentioned in our Rent Review FAQ, your rent can go down during a market review if the market has fallen.
• Limited Outgoings: Landlords can only recover specified outgoings and must provide annual audited statements. They cannot charge for capital improvements to the building.

4. Minimum 5-Year Term

Under the Act, a retail tenant is entitled to a minimum 5-year lease term (this can include options, e.g., a 2-year lease with a 3-year option). If you want a shorter term, you must obtain a certificate from a lawyer to waive this right.²

5. Dispute Resolution

Retail tenants don’t have to go straight to court for a dispute. The Queensland Small Business Commissioner and QCAT provide a low-cost mediation and tribunal service specifically for retail shop lease disputes.

Related Topics

• What are Outgoings?
• Commercial Rent Increases
• Commercial Law Practice Area

Know Your Rights

Landlords often use their own “standard” leases that might include terms that are illegal under the Act. We audit your lease to ensure every clause is fully compliant with your statutory protections.

Small business owner? Contact Bell & Senior to review your retail shop lease. Call (07) 5532 8777.