NSW: Commercial Lease Relief Measures Return – Real Estate & Construction
Australia: NSW: return of commercial lease relief measures
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The NSW government will reintroduce the Mandatory Commercial Lease Code of Conduct to impose rent relief on eligible tenants affected by COVID-19.
A hardship fund comprising $ 40 million in grants will also be set up to provide individual grants of up to $ 3,000 for certain commercial or retail landlords who offer their tenants rent waivers of at least the value of the grant and any property tax relief that the owner is eligible for under other measures.
The new enabling regulation will remain in effect until January 13, 2022, and landlords will be required to negotiate rent relief taking into account the mandatory code of conduct. This code requires landlords to provide rent relief commensurate with the decline in their tenant’s turnover. At least 50% of the relief granted must be in the form of rent waivers, and the balance can be in the form of rent deferral.
The regulation applies to commercial and retail tenants with revenues of up to $ 50 million who are eligible for the NSW COVID-19 Microbusiness Grant, the COVID-19 Business Grant, or the JobSaver Payment. . The previous version of the regulation applied to commercial or commercial tenants who were eligible for the now closed JobKeeper grant.
Affected landlords will be prohibited from evicting or locking out a tenant for certain breaches of the lease, unless they have first renegotiated the rent and attempted mediation in accordance with the Code of Conduct.
The office of the Small Business Commission received additional funding to provide more staff to meet the demand for mediations and to help tenants and owners of retail and commerce negotiate new payment terms during the process. current outbreak of COVID-19.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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