Behind the shopfront: Are changes in store for parties to retail shop leases in Queensland? (Part 1)

The Queensland Government has announced a review of the Retail Shop Leases Act 1994 (Qld) (RSL Act), which sets out the rights, obligations and dispute resolution processes for retail tenancies across the state.

This first instalment in our ‘Behind the shopfront’ series looks at what the review will cover and how landlords can respond.

A review like this is not unusual. Section 122 of the RSL Act requires the relevant Minister, currently the Minister for Customer Services and Open Data and Small and Family Business, to periodically review the Act and report back to Parliament on whether its provisions remain appropriate.

The last review in 2014 led to the Retail Shop Leases Amendment Act 2016 (Qld). That Act narrowed the scope of the RSL Act by excluding certain rentals (such as leases for areas larger than 1,000 square metres) and introducing new limitations on tenants’ ability to recover compensation.

Since then, Queensland’s retail and commercial leasing market has continued to evolve. This is reflected in several trends:

• retail turnover has grown significantly, with total monthly retail turnover in Queensland having increased from $4.8 billion to nearly $7.5 billion between June 2015 and June 2025 
• retail floorspace remains constrained, with limited new supply, rising retail demand and high occupancy rates supporting generally strong growth in rental prices
• demand for dispute resolution services has risen significantly. In the 2024–25 financial year, the Queensland Small Business Commissioner received 305 applications for mediation, including applications relating to retail tenancy disputes under the RSL Act, compared with just 24 applications in the 2021–22 financial year. 

What will the review cover?

The current review will consider any matter or aspect of the RSL Act relating to the legislation’s role in promoting efficiency and equity in the conduct of certain retail business. However, the Government’s discussion paper focuses particularly on opportunities to:

• clarify and streamline how the legislation operates, particularly by reducing duplication and inconsistency with other regulatory requirements, such as the Property Law Act 2003 (Qld)
• refine the scope of the Act in light of modern retail models and evolving commercial leasing practices
• simplify disclosure processes when parties enter into, renew or assign a lease
• amend the minimum standards that apply to retail shop leases so they better meet the needs of lessors and lessees, support compliance and help prevent disputes
• amend the legislation’s dispute resolution provisions to support timely, proportionate, accessible and cost-effective dispute resolution.

The review will not cover:

• the operational delivery of mediation services by the Queensland Small Business Commissioner
• the operation or resourcing of the Queensland Civil and Administrative Tribunal, which is currently the subject of a separate review supported by the Department of Justice
• commercial rent levels, valuation methods, and broader market and economic factors.

What happens next?

As part of the first stage of the review, the Queensland Government has invited interested parties to provide feedback on the RSL Act by 5pm on 11 September 2026. That feedback will help inform recommendations on how the legislation could be improved.

If you have any questions about the RSL Act or what the review could mean for your business, please get in touch with us.

We will continue to share updates through our series as the review progresses.

Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.

Published by:

Marguerite Xavier

Morgan Lynch

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