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This update covers the New South Wales tenancy relief for both commercial and residential tenants and landlords. 

Commercial

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.
Southern Waters Legal are assisting businesses and landlords with lease negotiations under the Retail and Other Commercial Leases (COVID19) Amendment Regulation. Marcus Carbone has kindly provided a further summary of the measures which you can access below. You can contact their office on 02 9523 5535 or email Marcus at marcus@southernwaters.com.au
Access Summary Here

Residential

The Residential Tenancy Support Package applies to eligible COVID-19 impacted tenants and consists of a 60 day freeze on evictions and assistance for landlords who reduce rent.
 
What you need to know: 
  • Eligible COVID-19 impacted residential  tenants who cannot meet their residential rent payments will  be protected from eviction during the moratorium period commencing from 14 July and finishing at the end of 11 September 2021;
  • Eligible tenants will include those impacted by COVID-19 where household weekly income has reduced by 25% or more compared with the weekly income received in the 4 weeks prior to 26 June 2021;
  • Landlords will be provided financial support to assist with providing rental relief for tenants;
  • The Residential Tenancy Support Payment now provides up to $3,000 per tenancy agreement. This payment will be available for landlords who agree to reduce the rent for COVID-19 impacted tenants from 14 July 2021;
  • The amount for each landlord will be capped at the rent reduction that is passed onto the tenants, or $3,000, whichever is the lower;
  • A landlord can claim either this Payment or the COVID-19 land tax benefit (which is an offset of the land tax liability equal to the rent reduction granted), but not both.
Visit the NSW Fair Trading website for further detail by clicking here.

Here to Help

As always, the FMA team are across the detail and ready to answer any questions you may have. 

Contact our office on +61 2 9540 6888 or via email at info@fmapartners.com.au 
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