Relief for commercial tenants

The Government has announced a range of measures to help renters. This includes a temporary hold on evictions and a mandatory code of conduct for commercial tenancies to support small and medium sized enterprises (SMEs) affected by coronavirus.

Evictions will be put on hold over the next 6 months for commercial and residential tenants in financial distress, who are unable to meet their commitments due to the impact of the coronavirus.

The code includes a common set of 14 principles. These include that:

• landlords must not terminate leases for non-payment of rent during the COVID-19 pandemic (or reasonable recovery period)

• tenants must stay committed to their lease terms (subject to amendments)

• landlords must offer reductions in rent (as waivers or deferrals) based on the tenant’s reduction in trade during COVID-19

• benefits that owners get for their properties (e.g. reduced charges, land tax, deferred loan payments) should be passed on to the tenant (in the appropriate proportion)

https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Relief-for-commercial-tenancies