The Federal Government yesterday announced the detail for a mandatory Commercial Tenancy Code for the COVID-19 period.
The Code sets out good faith leasing principles to guide discussions between commercial landlords and tenants who are significantly affected by the COVID-19 crisis. It will apply to tenants who are JobKeeper participants and have a turnover of less than $50 million.
The Code requires owners to provide rental relief to qualifying tenants by the same proportion as the loss of revenue experienced by the tenant.
Under the Code, landlords must not terminate the lease or draw on a tenant’s security. Similarly, tenants must honour their lease.
The Code is to be introduced through legislation or regulation by state and territory governments.
Once the state legislation to implement this becomes available, we will provide an update.
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Published: 8 April 2020