Commercial tenancy during COVID part 2

BREAKING: commercial landlords and tenants will be forced to abide by a mandatory “Code of Behaviour”, if they are relying upon the Jobkeeper stimulus package and their turnover is less than $50m.

Details coming out in the coming days.

scomo said that the main point he wanted to make was that in the Code will be an overriding PROPORTIONALITY PRINCIPLE – ie the tenants turnover reduction needs to be reflected in the rental waiver.

For example: If a commercial tenant requests a 3 or 6 months rental waiver because they had to close doors (ie no revenue), then the landlord can:

– extend the overall lease by that 3 or 6 months period; or

– agree to a different amount of rent repayments during the current lease period

Other details known:

** It does not apply to banks, but they are encouraged to participate in Team Australia

** If your revenue has not been impacted, you need to meet your obligations to your landlord

** A mediation facility will be offered to landlords and tenants to help with any disputes

** CTH Gov will be required to act as a model landlord

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