7. Commercial Landlord and Tenants
The new proposals will be part of a new mandatory code of conduct for commercial tenancies to be legislated by each state and territory. It will bind both landlords and tenants – who have a turnover of $50 million or less and are eligible for the JobKeeper program of benefits.
This could take the form of a waiver to account for at least 50 per cent of the reduction in business, or deferral of rent that must be covered over the balance of the lease term, but for no less than 12 months.
For example, if your turnover has decreased by 40%, you should be able to negotiate a rent reduction of 40%, which may be comprised of 20% rent waiver and 20% rent deferral. If your rent was $10,000, your new rent will be $6,000, with $2,000 waived and $2,000 deferred to be paid within 12 months.
Once the legislation is in place for the Code, we will notify you of the updates.
