Leasing disputes

You can apply for mediation if you are the tenant or landlord in dispute about a small business lease under the SBC Act, or retail shop lease under the RSL Act.

Participating in mediation is optional and anything said in the mediation conference cannot be used as evidence in a tribunal or court.

The QSBC will nominate a mediator from the QSBC Mediator Panel. All mediators are experienced and accredited under the National Mediator Accreditation System (NMAS). 

If you participate in mediation, you agree to the Small Business Commissioner’s Mediation Policy and to comply with any  relevant legal obligations.

All mediations are conducted in accordance with the National Mediator Accreditation System (NMAS) practice standards.

The mediation conference will be held in private via video or telephone conferencing and is confidential.

The mediator will help the parties to explore the issues, discuss options, and, if possible, reach a settlement agreement. The mediator will conduct an intake with each party, may ask the parties to share information, may meet with the parties together or separately, and may communicate verbally or in writing.

During the mediation, each party must conduct their own case; however, the mediator may allow a representative to speak on behalf of a party if they are a company or if the mediator agrees it is appropriate. Additional parties may be added if all the parties agree and the additional party pays their share of the mediation fee. 

If the parties reach an agreement during mediation, the mediator will write down the agreement (called the mediation agreement), and both parties must sign it.

If either party does not follow the agreement, the other party can ask a tribunal or court to enforce it. 

If through this process, a mediation agreement cannot be reached, each party may seek their own independent legal or financial advice about other options. 

For mediations under the RSL Act, if the parties cannot reach an agreement the mediator must refer eligible matters to QCAT.

The mediation fee of $371.00 is set in the Small Business Commissioner Regulation 2022 and Retail Shop Leases Regulation 2016 and is shared equally by the parties to the dispute ($185.50 per party).

Our fees and charges increase on 1 July each year.

Details on how to make the payment will be provided to both parties after the application for mediation is submitted.

Fee waiver for financial hardship

The commissioner may waive all or part of the fee payable by a party if the commissioner is satisfied the payment of the fee would cause, or would be likely to cause, the party financial hardship. To apply for a waiver based on financial hardship, the party must meet the below eligibility criteria:

• Be currently receiving support from the Small Business Financial Counselling Service and request (and have) the counsellor email the QSBC case manager directly stating that you are receiving financial counselling and that the payment of the fee would cause, or would be likely to cause, financial hardship.

OR

• Have an independent certified practising accountant or certified bookkeeper provide a signed letter (including their full name, contact information and certification) stating that they have no conflict of interest, are aware of your current financial position and that the payment of the fee would cause, or would be likely to cause, financial hardship.

The email or signed letter must be received by the QSBC case manager assisting with your dispute before the due date for your share of the mediation fee.

If your application is properly made, the commissioner or authorised officer will then consider your fee waiver request against the above eligibility criteria. A decision will be made within 2 business days of your submission, and you will be advised of the outcome by email.

Fee waiver for a class of parties

The commissioner may also waive all or part of the fee payable for a class of parties for a particular period if the commissioner is satisfied the waiver will promote access to mediation by the parties during the period.

If the commissioner is satisfied that an unforeseeable business disruption has occurred which is reasonably preventing either of the parties from fulfilling their obligations under a small business lease or retail shop lease, the commissioner may publish a waiver of all or part of the mediation fee on the QSBC website.

The waiver will state the class of parties to which it applies and the period for which the waiver exists. The waiver will be automatically applied to relevant parties; however, the parties will be asked to confirm by email that they wish to apply for and participate in a mediation conference.

¹ This is the Small Business Commissioner’s operational policy in relation to mediation fees.

Retail tenancy disputes are mediated under the Retail Shop Leases Act 1994 (RSL Act). A retail shop lease under the RSL Act has specific definitions, some of which include:

• a premises is used for retail purposes
• a shop type mentioned in the RSL Regulation
• a shop located within a retail shopping centre (where 5 or more retail shops are located)
• a shop with a floorspace of less than 1,000 square metres.  

You should seek independent legal advice if you are not sure if your lease is a retail shop lease.  

After mediation, the mediator will notify us and must refer the dispute to the Queensland Civil and Administrative Tribunal (QCAT) if: 

• no agreement can be reached in writing at mediation, or
• a party does not attend mediation, or
• the dispute has been with the mediator for four months,

and 

• the lease is current (or has not expired, been surrendered, or terminated more than a year ago), and
• the dispute is within QCAT’s jurisdiction. 

The Small Business Commissioner Act 2022 (SBC Act) applies to small business lease disputes (other than retail tenancy disputes) and franchise disputes. 

To be eligible for mediation, one party to the dispute must identify as a small business and both parties to a small business lease dispute must: 

• have already attempted to find an informal resolution to the matter first, and
• agree to mediate the dispute, and
• agree to share the cost of mediation equally. 

If no agreement can be reached at mediation, the parties may need to seek your own independent legal or financial advice about their further options.