Rent relief for commercial tenants

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