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.