NSW: Re-Introduction Mandatory Code of Conduct for Commercial Leasing
On 14 August 2021, the NSW Government has announced that it will re-introduce the Mandatory Code of Conduct for Commercial Leasing which mandates rent relief for eligible tenants impacted by COVID-19.
A new $40 million Hardship Fund will 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 NSW Land Tax COVID-19 relief they are eligible for.
It is proposed that the Code of Conduct will be in effect until 13 January 2022, providing six months of protection for small businesses.
Under the Code of Conduct, landlords must provide rent relief in proportion with their tenants’ decline in turnover. At least 50% must be waivered, and the balance deferred.
Eligible tenants include commercial and retail tenants with a turnover of up to $50 million who qualify for the JobSaver Payment, COVID-19 Business Grant or Micro-business Grant.
Commercial landowners are also able to apply for up to 100 per cent of their land tax liability for 2021 if they have reduced rent for a tenant by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021.
The NSW Government has advised that more information for landlords and tenants will be available soon.
To find out more about the Code of Conduct or the NSW Land Tax COVID-19 relief, please get in touch with the team at Cutcher & Neale.