Relief for commercial tenants

Last week the Prime Minister announced further information on the mandatory Code of Conduct for commercial tenancy agreements agreed by the National Cabinet. Further details on the Code include:

  • Applicable to any tenancies where the landlord or tenant applies for the JobKeeper program and where they have a turnover of $50 million or less.
  • Proportionality to rent reductions is based on the tenant’s decline in turnover.
  • The waivers will have to account for at least 50 per cent of the reduction in business and deferrals must be spread over the remaining time on a lease and for no less than 12 months.
  • Flexibility will allow tenants and landlords to tailor appropriate temporary arrangements that consider their circumstances.
  • Australian and foreign banks along with other financial institutions operating in Australia are expected to support landlords and tenants with appropriate flexibility.
  • Landlords must not terminate the lease or draw on a tenant’s security. Likewise, tenants must honour the lease.

Learn more at Business Victoria.