NSW Government will reintroduce 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 until 13 January 2022 mandating rent relief for eligible tenants impacted by Covid-19.
The Retail and Other Commercial Leases (Covid-19) Regulation 2021 (Regulation) (which is not yet available) will include the following provisions:
- require a landlord to provide rent relief to an eligible tenant in proportion to the decline in the tenant’s turnover
- the rent relief must be in the form of at least a 50% waiver and the balance as a deferral
- a landlord will be prevented 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 qualify for the Covid-19 Microbusiness Grant, Covid-19 Business Grant or JobSaver Payment.
Eligible landlords will also be entitled to apply for relief for up to 100% of their 2021 land tax liability. However, to be eligible, landlords must have reduced rent for impacted tenants by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021.
$40 million hardship fund for small commercial and retail landlords
A hardship fund of $40 million will be established to provide a monthly grant of up to $3,000 for small commercial and retail landlords who provide rental waivers of at least the value of the grant and any land tax relief they are eligible for. We will provide further updates regarding the Regulation as they become available.
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