The NSW Government has reintroduced the National Mandatory Commercial Code of Conduct for Commercial Leasing. This is the much-awaited rent relief that small businesses have been waiting for due to the recent and extended COVID-19 lockdown laws.
The mandatory Code of Conduct will be extended until 13 January 2022 providing for protection for small businesses. Whilst it is still encouraged that all landlords and tenants come to the table to negotiate, this is now mandating the minimum relief that landlords need to provide impacted tenants.
Noting impacted tenants are those whose income has decreased by more than 30% (as per the previous Job keeper requirements) and have a turnover of less than 50 million.
The Retail and Other Commercial Leases Regulation 2021 will require landlords to renegotiate rent and provide rent relief in proportion with their tenant’s decline in turnover. If the rent relief is provided, at least 50% must be in the form of a waiver and the balance a deferral. A summary of what each parties rights are can be found here.
The State Government have also established a $40million Hardship Fund for Landlords that provides a monthly grant of up to $3,000 for small commercial or retail landlords who do provide rental waivers of at least the value of the grant and any land tax relief that they are eligible for.
Adriana is the Managing Partner for Coutts. She acts for large commercial financial institutions in relation to corporate governance, and the provision of retail and wholesale credit and funding facilities for both the commercial and consumer market.
She also acts for a range of ADIs, finance companies, vendor introduces and equipment lessors. She acts for a number of franchisors and franchisees, as well as small property developers, builders and commercial property leases and debt recovery. Adriana has also worked in the fields of insolvency, commercial disputes and litigation and occupational.
This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.