Retail and Other Commercial Leases (COVID-19) Regulation
The National Cabinet have formally agreed that states and territories will implement the attached mandatory Code of Conduct in respect to certain commercial leasing arrangements.
The mandatory Commonwealth Code of Conduct is a set of good-faith leasing principles for commercial tenancies, including retail, office and industrial, during the COVD-19 pandemic. It states that rent reductions should be proportional to the tenant’s decline in turnover to ensure the financial burden is shared between tenants and landlords. That Code of Conduct has now been given effect in NSW by the introduction of the Retail and Other Commercial Leases (COVID-19) Regulation 2020.
The code applies to all commercial tenancies that:
- are suffering financial stress or hardship as a result of the COVID-19 pandemic
- are eligible for the JobKeeper program
- have an annual turnover of up to $50 million.
For more information, visit Relief for commercial tenants.
The NSW government is supporting commercial tenants by enacting the mandatory National Cabinet Code of Conduct as part of a new land tax relief package. This means:
- landlords must negotiate rent relief agreements with tenants who have been financially impacted by COVID-19
- there is a ban on the termination of leases for non-payment of rent
- there is a freeze on rent increases.
Small business owners can access mediation and advisory services at the NSW Small Business Commissioner website.