NSW Government re-introduces 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 mandating rent relief for eligible tenants impacted by Covid-19.
The Retail and Other Commercial Leases (Covid-19) Regulation 2021:
- will be extended until 13 January 2022 (previously due to expire on 20 August 2021)
- requires the lessor to renegotiate the impacted lease with the lessee in accordance to the principles set out in the National Code of Conduct. The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover. At least 50 per cent of the rent relief must be in the form a waiver, and the balance a deferral.
- prevents a landlord 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 are impacted lessees, that is, they qualify for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment.