Commercial landlords in New South Wales will now be required to offer rental relief to tenants with an annual turnover less than $50 million under an extended state support scheme.
What you need to know:
- For a six-month period (13 July 2021 to 13 January 2022), commercial and retail property owners cannot take certain actions against an eligible tenant (e.g. evict an eligible tenant) unless they have first renegotiated rent and attempted mediation;
- The recently enacted Retail and Other Commercial Leases (COVID19) Amendment Regulation 2021 has re-introduced the principles of the National Cabinet’s Mandatory Code of Conduct;
- This will be in force until 13 January 2022;
- It mandates landlords to renegotiate rent and provide rent relief in proportion with their tenant’s decline in turnover although the Regulation does not prescribe a specific period that parties should use to calculate the decline in turnover;
- Rent relief must be comprised of:
- A minimum 50% waiver; and
- The balance to be deferred.
- This applies 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;
- Relief for landlords includes a new $40 million Hardship Fund which will offer monthly grants of up to $3,000 for small commercial or retail landlords.
Visit the Small Business Commissioner website for further detail by clicking here