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Mandatory Code to Guide Commercial Tenants on Rent Relief

COVID-19 : SYDNEY, MELBOURNE, BRISBANE, ADELAIDE, CANBERRA, PERTH & REGIONAL AUSTRALIA

Summary of Key Points: 

  • The code applies to all tenancies that are suffering financial stress as a result of the COVID-19 pandemic as defined by their eligibility for the Commonwealth Government’s Job Keeper program, with an annual turnover of up to $50 million.
  • Landlords must offer tenants proportionate reductions in rent payable in the form of waivers and deferrals based on the reduction in the tenant’s trade during the COVID-19 pandemic period and a subsequent reasonable recovery period, with waivers constituting a minimum of 50% of the reduction in rent payable.
  • Payment of rent deferrals by the tenant must be completed over the balance of the lease term and for a period of no less than 24 months, whichever is the greater, unless otherwise agreed by the parties.
  • Landlords agree to a freeze on rent increases for the duration of the COVID-19 pandemic.
  • Landlords must not terminate leases due to non-payment of rent during the COVID-19 pandemic period.
  • Tenants must remain committed to the terms of their lease.
  • Landlords must not draw on a tenant’s security for the non-payment of rent.