Rent relief for commercial tenants

Posted on April 7th, 2020 by WLF

In addition to a previously announced ban on evictions of commercial tenancies, the Government has announced a mandatory code that will require landlords to defer and waive rent payments

  • Will only apply to tenancies where the tenant or the landlord is eligible for JobKeeper payments and have a turnover of $50m or less  
  • Landlords of commercial tenancies will be required to reduce rent payments in line with the tenant’s reduced business income 
  • The reduction will result in waivers and deferrals of rent 
  • The waiver has to equal at least 50% of the reduction 
  • Deferrals are to be paid back over the greater of either the remaining term of the lease or 12 months   
  • The landlord can’t terminate the lease or draw on the tenant’s security  
  • The tenant must honour the lease  
  • There will be a binding mediation process to oversee the implementation of the code  
  • The Prime Minister has stated that banks will be requested to support landlords 
Posted in COVID-19, News
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Rent relief for commercial tenants

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