Commercial leasing amidst coronavirus

Commercial Directions

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.

 


Related Articles

NSW’S ADDITIONAL COVID-19 LEGISLATION TO IMPACT ENVIRONMENTAL PLANNING AND ASSESSMENT ACT

Commercial Directions

On 13 May 2020, the NSW Parliament passed the COVID-19 Legislation Amendment (Emergency Measures—Miscellaneous) Act 2020 (the Miscellaneous Amendment Act) to amend…

Continue reading

Not so cruisy – High Court awards damages for disappointment and distress following a river cruise

Commercial Directions

A recent decision from the High Court of Australia is particularly topical due to the large number of holidays disrupted as…

Continue reading

Land tax relief available for landlords in Victoria

Commercial Directions

In line with recent announcements by the New South Wales and Queensland Governments, the Victorian Government has announced a $420 million…

Continue reading