Commercial leasing amidst coronavirus
April 3, 2020
Scott Morrison, the Prime Minister of Australia, has today provided an update on the measures being developed for commercial leasing during the current period of economic turmoil brought on by COVID-19.
Following a meeting of the National Cabinet, Morrison confirmed that an Industry Code of Conduct is being developed, and is set to be become mandatory by incorporation into state and territory legislation.
The Code will provide relief to tenants with a turnover of under $50 million who participate in the JobKeeper program. While the Code will not be prescriptive, it will include a proportionality principle, requiring rent to be reduced proportionately to a tenant’s loss of income. It will also stipulate that landlords, tenants and financiers must negotiate in good faith as they navigate the challenges of the current retail environment.
We expect more details will be provided in the coming days.
Further information / assistance regarding the issues raised in this article is available from the authors, David Gandolfo, Partner, Sarah Harkin, Associate, or your usual contact at Moray & Agnew.
The above content is commentary rather than legal advice and was prepared on the basis of applicable legislation, government programs and initiatives that were in place as of the date of publication. Given the ongoing evolution of both the COVID-19 pandemic and frequent consequential changes to the various laws and programs within all Australian states and territories, readers should seek legal advice on the current situation as applicable to their specific circumstances before taking any action in relation to the above.
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