Responding to Breach Notices, Lockouts, and Evictions: What Queensland Commercial Tenants Need to Know

For many small business or retail shop lease tenants, receiving a breach of lease notice or facing a lockout can be a stressful and overwhelming experience. Seeking the right advice to understand your responsibilities and options is critical to resolving these issues effectively and minimising the impacts.

In short:

Don't ignore breach notices: Address them promptly to avoid escalation.
Understand your rights: Familiarise yourself with your lease terms and the Property Law Act 2023.
Seek professional advice: The consequences can be devastating to small businesses but may be lawful. Legal advice can help you navigate these complex situations.
Keep detailed records: You may need to rely on them later in court or tribunal.
Consider mediation: The Queensland Small Business Commissioner (QSBC) mediation services provide a cost-effective alternative to legal action but will not typically stop proceedings if they have begun.

To apply for mediation, you can use the QSBC’s online form apply for mediation.

Breach notices, lockouts and evictions

Typically breach notices and terminating a lease and recovering possession (lock outs) are governed by Part 9, Division 5 of the Property Law Act 2023 (PLA) and the terms contained in your lease.

Lease breach notices: Often called a ‘form 7’ or ‘notice to remedy breach’—a formal notification from the landlord indicating that the tenant has breached specific terms of the lease or vice versa.
Lockouts/evictions: A landlord may lawfully terminate the lease and lock a tenant out of the premises (or evict them) if the breach is not remedied within the specified timeframe.

Some actions may automatically trigger termination of the lease and a right of re-entry of the land, for example if the landlord reasonably believes the tenant has given up possession of the property (section 156 PLA).

Common reasons for breach notices and lockouts

Breach notices and lockout issues have consistently ranked among the top five reasons for disputes submitted to the Queensland Small Business Commissioner (QSBC) over the past three years. In the 2025–26 financial year, 16% of mediations facilitated by the QSBC involved disputes related to lease notices, lockouts, or evictions.

Some of the most frequest reasons for these disputes include:

Late or unpaid rent
Failure to notify the landlord of changes in business ownership or directorship
Subletting without consent
Unauthorised use of the premises
Failure to maintain the property as agreed in the lease
Assigning the lease to a new tenant without seeking permission.

Typically if you have a signed contract like a lease agreement, and you get sick or injured, sales drop, the business is not working out as planned or economic conditions change, you will still be liable for the rent and other lease obligations. You may be able to insure against some of these happening to minimise your loss but the other party is not usually bound to release you from your obligations.

Responding to a breach notice

1. Read the notice carefully and seek legal advice urgently

Do not ignore notices, believing things will resolve themselves. Our experience is that they rarely do. Understand the specific breach and the steps required to remedy it. The notice will specify a timeframe for compliance, which varies depending on the nature of the breach. If you ignore or miss a deadline stated in the breach notice, it can lead to significant repercussions.

2. Check for defects in the notice or how it was served

Ensure the notice complies with the PLA and has been issued to you in accordance with your lease agreement. If the notice is missing required information (e.g., a timeframe by which the breach must be remidied) or served incorrectly (e.g., emailed instead of posted by mail), it may be invalid. Seek legal advice immediately if you suspect the notice is defective. Only a court or tribunal can rule a notice defective.

3. Dispute the breach if necessary

Seek legal advice immediately if you suspect the notice is defective. Only a court or tribunal can rule a notice defective. You might need to apply to the Queensland Civil and Administrative Tribunal (QCAT) (only for retail shop leases) or a court for an interim/injunction order to pause further action while any dispute is decided. Learn more in our article: Understanding Interim Injunction Orders in Lease Disputes

4. Take action to remedy the breach or prepare to be locked out

If the breach is valid, act promptly to resolve the issue. For example, pay any outstanding rent or address the specific issue outlined in the notice. If you cannot remedy the breach, prepare to be evicted by removing as many of your belongings and those of your customers as possible.

Some tenants contact us too late to negotiate and are left with limited options.

5. Keep detailed records

keep a written record of your communication and interactions with the landlord or property agent, especially when discussing rent arrears or potential breaches. Verbal agreements can lead to misunderstandings, and having written evidence can be crucial if a dispute arises.

6. Apply for mediation

If there is a dispute, apply for mediation with the QSBC. This is a required step before accessing QCAT (for a retail tenancy dispute) and a voluntary step before court (for small business lease disputes).

If I am in dispute with the lessor of my commercial property can I withhold rent or outgoings?

Withholding rent or outgoings in breach of your lease is unlikely to resolve the dispute. In fact, it often escalates the situation and may result in the lessor issuing you a notice to remedy the breach, which is typically the first step towards terminating the lease.

If you are withholding rent or taking other actions to try and address a separate issue in dispute (e.g., unresolved maintenance), seek legal advice immediately. Courts and tribunals may look unfavourably on tenants who intentionally breach their lease to try and resolve disputes. You may be better served negotiating or mediating the dispute, rather than witholding rent.

Learn more in our article: If I am in dispute with the lessor of my commercial premises can I withhold rent or outgoings?

Responding if you are locked out

Being locked out of your commercial premises can have serious financial and operational consequences. No commissioner or government agency can intervene – only the courts or a tribunal.

If you find yourself in this situation:

1. Seek legal advice immediately

A qualified property lawyer can help you assess whether the lockout was lawful and advise on your options for relief or compensation. The QSBC and other government agencies cannot provide you legal advice.

2. Assess the lessor's actions

With the help of a solicitor, determine whether the landlord followed the proper procedures under the lease and the PLA. A solicitor may help you identify actions by the lessor that may invalidate the notice. For example:

Was a valid breach notice issued?
Was a reasonable timeframe for remedy provided?
Was the noticed delivered as per the method prescribed in the lease?
Does the notice specify the particular breach complained of?
Was my lease a periodic tenancy or terminable at will under the PLA?

3. Apply for urgent relief

If you believe the notice was defective, served invalidly or the landlord locked you out before they said they would and you need immediate access to the premises, you might apply to QCAT (only for retail shop leases) or a court for an interim/injunction order to pause further action while any dispute is decided. Learn more in our article: Understanding Interim Injunction Orders in Lease Disputes

4. Communicate with stakeholders

Inform staff and customers about the situation, focusing on practical steps to address their concerns (e.g., retrieving belongings). Avoid discussing the dispute’s details publicly or posting on social media as this may lead to further legal action.

5. Negotiate the return of personal items

If the lessor has taken possession of the premises, negotiate access to retrieve essential items, such as tools, customer property, or leased equipment. Explain the potential consequences if this property is not returned (for example the health impacts if staff can’t retrieve medication from lockers or that you can’t collect money from customers to pay the arrears, if the laptop is locked in the office).

6. Keep detailed records

Document all interactions, notices, and actions related to the lockout.

7. Apply for mediation

If there is a dispute, apply for mediation with the QSBC. This is a required step before accessing QCAT for a retail tenancy dispute and a voluntary step before court for small business lease disputes.

Avoid escalating the situation

It may be tempting to take matters into your own hands, such as breaking the lock to regain access. However, we have seen this result in serious legal consequences for commercial tenants, including police arriving on scene and criminal charges. It could also lead to liability for damages, especially if the lessor’s actions are found to have been lawful.

While negotiating directly with the lessor or letting agent may not always be successful or they may ignore you, it may be worth attempting to:

Request access to retrieve essential items or ask them to retrieve the items and return them to you (e.g., staff belongings, medications, tools).
Propose a payment plan or other resolution to address the arrears.
Ask for an extension to the remedy period.

What is repudiation of a lease?

Repudiation is a legal term that refers to a situation where a party to a contract indicates that they will not, or cannot, fulfill their contractual obligations and can lead to lawful termination and claims for damages. You should take care and seek advice to avoid inadvertently repudiating simply by being careless with your words or conduct.

Affording legal advice or taking legal action

Lease disputes and lockouts are complex legal matters, and professional legal advice is often essential to fully understand your rights and options. If you cannot afford to take the matter to court, the QSBC offers low-cost mediation to help landlords and tenants negotiate a solution to disputes.

However, the QSBC:

cannot compel a party to participate in mediation,
cannot provide legal advice,
cannot hand down decisions, and
cannot stop another party taking legal action against you.

Read about ways to minimise costs, including accessing limited free (pro bono) legal services in our article: Seeking Legal Advice: Your Compass in Dispute Resolution.

QCAT publishes self-representation resources here.

The importance of record keeping in a dispute

A contemporaneous note is a written piece of evidence which relates to the facts of a conversation or interaction made at the time. A contemporaneous note may have more weight in a trial compared to other evidence. This documentation can be critical if you find yourself in court. It may demonstrate that you made a reliable record of what occured and a genuine effort to resolve the issue.

Keep a detailed record of every attempt you’ve made to contact the landlord or agent, including:

Emails, letters, or messages sent
Dates and times of phone calls or in-person visits
Any response (or lack thereof).

How QSBC helps tenants, lessors and their agents

The Queensland Small Business Commissioner (QSBC) offers mediation services to help retail shop and small business tenants and lessors resolve disputes without resorting to costly and time-consuming legal action. Mediation is a confidential process facilitated by a trained mediator, allowing both parties to explore practical solutions. The mediator sets ground rules for the conversation and keeps the peace during negotiations. A mediator may approve representation by an agent at mediation but each party must run their own case.

The QSBC does have limitations. The QSBC can help explain the benefits of mediating a dispute but mediation is voluntary, and a party cannot be compelled to participate. While mediation may not be suitable for urgent situations (e.g., regaining access after a lockout), it can still be a valuable option for negotiating a resolution to ongoing disputes. In Queensland only a court or tribunal can give directions or make decisions, the QSBC cannot.