Mandatory Code for Commercial Leasing

  • A Mandatory Code of Conduct will be implemented by all States and Territories by legislation or regulation to manage rent reductions proportionately according to the level of revenue loss.
  • The Code includes an extensive list of Leasing Principles that will shape individual arrangements. Key among them is that landlords must not terminate leases due to non-payment of rent during the COVID-19 pandemic period (or reasonable subsequent recovery period), and that tenants must remain committed to the terms of their lease, subject to any amendments to their rental agreement negotiated under the Code. Material failure to abide by substantive terms of their lease will forfeit any protections provided to the tenant under this Code.
  • The Code will be supported by state based Industry Code Administration Committees, comprising representatives from relevant industry bodies representing landlord, tenant and SME interests, with an Independent Chair appointed by the relevant State/Territory Government.
  • Eligibility: Businesses with turnovers of $50 million and below, that are also eligible for the JobKeeper Program. The $50 million annual turnover threshold will be applied in respect of franchises at the franchisee level, and in respect of retail corporate groups at the group level (rather than at the individual retail outlet level).
  • The arrangements will run from 3 April 2020 until the end of the JobKeeper Program (or reasonable subsequent recovery period).

 

For all details visit: https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Relief-for-commercial-tenancies