Queensland’s New Bill: What Commercial Landlords Need to Know

The Tobacco and Other Smoking Products (Dismantling Illegal Trade) and Other Legislation Amendment Bill 2025 introduces significant changes affecting commercial landlords of Queensland property. The reform targets illegal tobacco and nicotine trade and directly impacts lease management.

Key Implications for Landlords 

• New Lease Termination Powers: Landlords (“relevant lessors”) can terminate a commercial lease if a closure order is issued against the premises due to illegal tobacco or nicotine activity. Termination protections prevent tenant claims even if the closure order is later lifted or invalidated. 

• Liability for Non-Action: Landlords who knowingly allow illegal activity, or fail to act without reasonable excuse, may face criminal penalties of up to, 1,000 penalty units, one year’s imprisonment, or both.

• Civil Penalties: Even without proof of actual knowledge, landlords may be held liable if they are recklessly indifferent to illegal activity. Maximum civil penalties are 1,000 penalty units for individuals and 5,000 for corporations.

Practical Takeaways 

Landlords should: 

• Include clear lease clauses prohibiting illicit tobacco or nicotine activity.

• Monitor tenant operations and respond promptly to closure orders or signs of illegal trade.

• Document steps taken to prevent or address unlawful activity to rely on reasonable excuses.

Conclusion 

The Bill strengthens landlord powers to address illegal activity but increases responsibility. Proactive management and vigilance are essential to minimise legal and financial risk under the new law.

For guidance or assistance in reviewing lease arrangements and compliance obligations, please contact our people.

Eollyn Cortes 0478 727 395

Sagang Chung 0431 435 333