COVID-19: Rental Relief for Commercial Tenancies
The National Cabinet has agreed that states and territories will implement a mandatory Code of Conduct for commercial tenancies as part of the COVID-19 rental relief package.
Businesses with turnover under $50 million that are eligible for Jobkeeper payments will be protected by new laws to be passed in each State.
The key points of the Code of Conduct are:
- Landlords must not cease the lease
- Tenants must honour the lease
- Landlords must look to reduce rent in proportion to the reduction in business turnover i.e. 50% reduction turnover then 50% rent reduction. Turnover reduction is based on comparison between the same months this year and last year. 50% of the rent reduction takes the form of a rent waiver, and the other 50% a rent deferral.
- Binding mediation process will govern the code which will be administered by states and territories. States and territories will introduce relevant legislation in the coming days.
As always, please let us know if you would like to discuss this, or anything else in greater detail. We are here to help during this extremely difficult time. Your Accountant can advise you about the most appropriate available government assistance and help you register for those services if necessary.
If you are unsure of who you need to contact please either call 02 8404 6700 or submit the Contact form below. Your query can then be directed to the appropriate team member to action.