NSW Government re-introduces the National Cabinet’s Mandatory Code of Conduct for Commercial Leasing
On 13 August 2021, the NSW Government announced it will reintroduce the National Cabinet’s Mandatory Code of Conduct for Commercial Leasing mandating rent relief for eligible tenants impacted by Covid-19.
The Retail and Other Commercial Leases (Covid-19) Regulation 2021:
- will be extended until 13 January 2022 (previously due to expire on 20 August 2021)
- requires the lessor to renegotiate the impacted lease with the lessee in accordance to the principles set out in the National Code of Conduct. The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover. At least 50 per cent of the rent relief must be in the form a waiver, and the balance a deferral.
- prevents a landlord from evicting or locking out a tenant for certain breaches unless they have first renegotiated rent and attempted mediation.
The Regulation will apply to commercial and retail tenants with a turnover of up to $50 million who are impacted lessees, that is, they qualify for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment.
Further Support
A new $40 million Hardship Fund will provide small commercial or retail landlords with a monthly grant of up to $3,000 if they provide rental waivers that are at least equivalent to the value of the grant.
Eligible commercial landowners are also able to apply for relief on up to 100 per cent of their land tax liability for 2021. An eligible landowner must have reduced rent for the affected tenant by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021.
More Information
Please contact our Commercial Leasing team at Matthews Folbigg Lawyers on 9635 7966 if you would like advice or assistance in respect of your rights and obligations relating to the above or any other lease matter.
Anna Zdrilic
Principal T 02 806 7425 annaz@matthewsfolbigg.com.au |
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