The NSW Government has announced it will re-introduce the National Cabinet’s Mandatory Code of Conduct for Commercial Leasing to mandate rent relief for eligible tenants impacted by COVID-19.
Rental Relief for Tenants
The Retail and Other Commercial Leases (COVID-19) Regulation 2021 will be extended until 13 January 2022 and will require landlords to renegotiate rent to provide rent relief in proportion with their tenant’s decline in turnover. Of the rent relief provided, at least 50 percent must be in the form of a waiver, and the balance a deferral.
This regulation applies to commercial and retail tenants with a turnover of up to $50 million who qualify for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment. It will prohibit a landlord from evicting or locking out a tenant for certain breaches of the lease unless they have first renegotiated rent and attempted mediation.
Further information and FAQs can be found here.
Rental Relief for Landlords
Land Tax Liability Relief
Eligible commercial landowners are able to apply for relief on up to 100 per cent of their land tax liability for 2021. To be eligible, the landowner must have reduced rent for the affected tenant by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021.
To apply for land tax relief through Service NSW, please click here.
A new $40 million Hardship Fund will also be established to provide a monthly grant of up to $3,000 for small commercial or retail landlords who provide rental waivers of at least the value of the grant and any land tax relief they are eligible for.
More information for landlords and tenants will be published on the Service NSW website soon.
If you require any assistance please contact us.