Queensland Consolidated Regulations

LAND REGULATION 2020 - SCHEDULE 4

SCHEDULE 4 – Prescribed terms of particular subleases

Part 1 - Preliminary

1 Purpose and application

This schedule states the prescribed terms of a sublease of lease land, other than—

(a) a sublease of a trustee lease; or

(b) a sublease, the granting of which, under section 390A (2) of the Act , did not require the Minister’s approval; or

(c) a sublease, the granting of which, under a provision of another Act, did not require the Minister’s approval.

Examples of subleases for paragraph (c)—

• a sublease for which the Minister’s approval is not required under the Queen’s Wharf Brisbane Act 2016 , section 53

• a sublease for which the Minister’s approval is not required under the Water Act 2000 , section 730

2 Definitions for schedule

In this schedule—

"head lease" means the lease that has been subleased under a sublease.

"sublease land" —

(a) for a provision about a sublease—means, generally, the land the subject of the sublease; and

(b) for sections 3 to 5 —includes any area of lease land, of which the land mentioned in paragraph (a) is a part, used by the sublessee of the sublease.

Part 2 - Prescribed terms

3 Indemnity

(1) The sublessee of the sublease indemnifies, and agrees to keep indemnified, the State, the Minister and their representatives (all the
"indemnified parties" ) against all liability, costs, loss, charges and expenses including claims in negligence (including any actions, claims, proceedings or demands brought by any third party, and any legal fees, costs and disbursements on an indemnity basis) arising from, or incurred in connection with—

(a) the granting of the sublease to the sublessee; or

(b) the sublessee’s use and occupation of the sublease land; or

(c) personal injury (including sickness and death), or property damage or loss, in connection with the following—

(i) the performance of the sublease by the sublessee;

(ii) the attempted or purported performance of the sublease by the sublessee;

(iii) the non-performance of the sublease by the sublessee;

(iv) a breach of the sublease by the sublessee.

(2) The sublessee releases and discharges, to the maximum extent permitted by law, the indemnified parties—

(a) from all actions, claims, proceedings or demands; and

(b) in respect of any loss, death, injury, illness or damage arising out of the use and occupation of the sublease land, whether or not—

(i) the damage is personal or property damage; and

(ii) the loss is consequential loss.

(3) To the maximum extent permitted by law, the State, the Minister and their representatives are not liable to the sublessee for any consequential loss arising out of the use or occupation of the sublease land.

(4) In this section—

"consequential loss" means the following—

(a) loss of revenue;

(b) loss of profit;

(c) loss of anticipated savings or business;

(d) loss of opportunity (including opportunity to enter into or complete arrangements with third parties);

(e) loss of data or goodwill;

(f) loss of reputation;

(g) any special, indirect or consequential loss whether arising in contract, tort (including negligence) or otherwise.

"representative" , of a party, means an employee, agent, officer, director, contractor, subcontractor or other authorised representative of the party.

4 Insurance

(1) The sublessee of the sublease must take out a public liability insurance policy (the
"insurance policy" ), complying with subsection (2) , with—

(a) a general insurer authorised under the Insurance Act 1973 (Cwlth) ; or

(b) another insurer approved by the Minister.

(2) The insurance policy must—

(a) name the sublessee as the person insured under the policy; and

(b) insure the sublessee against—

(i) legal liability for any loss of, or damage to, any property, and for injury (including death) to any person, arising out of anything done or omitted to be done on or about the sublease land or any improvements on the sublease land; and

(ii) all actions, claims, demands, proceedings, costs, charges and expenses, including claims in negligence; and

(c) insure the sublessee for at least $20m, or a higher amount reasonably required by the Minister, for each event; and

(d) insure the sublessee on a ‘claims occurring’ basis; and

(e) be maintained by the sublessee at all times during the term of the sublease.

(3) If an event occurs that the sublessee considers is likely to give rise to a claim under the insurance policy, the sublessee must—

(a) give the Minister written notice of the event as soon as practicable after the event occurs; and

(b) ensure the sublessor and the Minister are kept fully informed of subsequent actions and developments concerning the claim.

(4) The sublessee must—

(a) renew the insurance policy, at the sublessee’s expense, each year during the term of the sublease; and

(b) if the sublessee receives a notice of cancellation in relation to the policy—immediately take out another public liability insurance policy complying with subsection (2) .

(5) This section does not apply if the sublessee—

(a) is the State, or a statutory authority eligible for insurance from the Queensland Government Insurance Fund; and

(b) is insured, and continues to be insured, by the Queensland Government Insurance Fund.

(6) Also, this section does not apply if the sublessee—

(a) is the Commonwealth, or a statutory authority eligible for insurance from Comcover; and

(b) is insured, and continues to be insured, by Comcover.

5 Use and development

(1) The sublessee of the sublease may only use or develop the sublease land—

(a) under the Act and any other relevant law; and

(b) in accordance with—

(i) the purpose, terms and conditions of the head lease; and

(ii) the purpose of the sublease; and

(c) in a way that would not be a breach of the head lease if it were carried out by the sublessor; and

(d) for a use or development for which the sublessee requires an approval—if the sublessee obtains the approval and carries out the use or development under the conditions of the approval.

(2) Subsection (3) applies if—

(a) the head lease is a term lease for pastoral purposes; and

(b) the sublease is current at any time during the final 2 years of the term of the head lease (the
"end period" ).

(3) The sublessee must not construct improvements or carry out development work on the sublease land during the end period without the Minister's written approval.

(4) In this section—

"develop" , sublease land, includes construct improvements on the land.

"law" includes a law of the Commonwealth or a local law.

"purpose" , of a head lease, means—

(a) the purpose for which the lease was originally issued; or

(b) if the purpose is changed under section 154 of the Act —the purpose of the lease as changed.

6 Duty of care

The sublessee of the sublease must manage and use the sublease land consistently with the objects of the Act .

7 No holding over or other dealings

(1) The sublessee of the sublease (the
"current sublease" ) must not hold over, possess or occupy the sublease land after the expiry of the term of the sublease.

(2) However, the sublessee and sublessor may enter into a new sublease for the sublease land if—

(a) the current sublease contains a clause (the
"renewal clause" ) that gives the sublessee the option to enter into a new sublease with the sublessor for the sublease land; and

(b) all requirements stated in the renewal clause are satisfied; and

(c) either—

(i) the sublessor applies, at least 3 months before the expiry of the current sublease, for an approval to sublease under section 332 of the Act (a
"subleasing approval" ) and the Minister grants the approval under that section; or

(ii) the Minister has issued the sublessor with a general authority to sublease under section 333 (1) (a) of the Act (a
"general subleasing authority" ); and

(d) the relevant subleasing conditions have been complied with; and

(e) the term of the new sublease will expire not later than 1 day before the day the head lease expires.

(3) If the sublessee and sublessor enter, or purport to enter, into a new sublease other than under subsection (2) —

(a) the new sublease is of no force or effect; and

(b) the sublessee—

(i) may, if allowed under a term of the current sublease, remove any improvements as allowed under the current sublease after it expires; but

(ii) otherwise has no right to possession, occupation or use of the sublease land after the current sublease expires.

(4) In this section—

"relevant subleasing conditions" means—

(a) for a subleasing approval—any conditions, mentioned in section 332 (3) (b) (i) of the Act , on which the approval is given; or

(b) for a general subleasing authority—

(i) the requirements prescribed for the authority under section 74 ; and

(ii) any conditions mentioned in section 333 (4) of the Act included in the authority.

8 Power of attorney

(1) The sublessee of the sublease—

(a) appoints the sublessor to act as the sublessee’s attorney; and

(b) authorises the sublessor to execute all documents, and to perform acts, on the sublessee’s behalf that are necessary for the registration of a surrender of the sublease to the sublessor.

(2) The sublessor may use the power under subsection (1) only if—

(a) the sublessee has breached a term or condition of the sublease; and

(b) the sublessor has—

(i) given the sublessee written notice of the breach; and

(ii) allowed the sublessee a reasonable period, of at least 20 business days after giving the notice, to remedy the breach; and

(c) the sublessee has not remedied the breach within the period; and

(d) the sublessor is entitled to end the sublease and take possession of the sublease land.

(3) This section does not apply if the sublessee is the Commonwealth or the State.

9 Sublessee’s obligations at end of sublease

(1) At the end of the sublease, the sublessee must—

(a) if the sublessee is entitled to remove improvements from the sublease land—maintain any insurance the sublessee is required to take out under section 4 during the period in which the improvements are removed (the
"removal period" ); and

(b) if the sublessee removes improvements from the sublease land—restore and otherwise make good the land to a condition similar to the condition it was in before the start of the sublease; and

(c) leave the sublease land in a clean and tidy condition.

(2) Section 3 continues to apply to the sublessee during the removal period.

(3) The sublessee must remove any improvements from the sublease land it is entitled to remove—

(a) if a period for removal of the improvements is agreed between the sublessee and the sublessor—within the agreed period; or

(b) otherwise—within 3 months after the sublease ends.

(4) If the sublessee does not remove the improvements it is entitled to remove from the sublease land under subsection (3) , the improvements become the property of the sublessor.

10 Access

The State is not responsible for the provision of access or services to the sublease land.

11 Jurisdiction

The sublease is governed by the law of Queensland and relevant Commonwealth laws.

12 Compliance with laws

The sublessee of the sublease must comply with all lawful requirements of—

(a) the local government for the local government area in which the sublease land is situated; or

(b) any department of the State or the Commonwealth; or

(c) another entity with jurisdiction over the sublease land, or the development, use or occupation of the sublease land.