Mandatory Code introduced in Relation to Commercial Leasing

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The Prime Minister has given another address to the Nation following the National Cabinet Meeting today.

The Prime Minister has stated that there will be a mandatory Code introduced in relation to commercial leasing by the State Governments, and the mandatory Code will contain the following points:

    • The Tenant or Landlord will be covered by the Code if the Tenant or Landlord is eligible for the JobKeeper Program (i.e. if either the Tenant or the Landlord is in distress);
    • The Landlord must not terminate the Lease or draw down on the Tenant’s Security;
    • The Tenant must honour the Lease;
    • There will be a proportionate reduction in rent proportionate to the proportion that the Tenant’s business has reduced.  There will be a combination of waivers and deferrals of rent.  50% of the reduction in rent, at least, must be by way of a waiver.  The remaining reduction in rent may be by way of a deferral which will be covered over the rest of the Lease.  However the deferral of rent cannot be recouped within a period that is less than 12 months;
    • There will be a binding mediation process for Landlords and Tenants that cannot agree or come into dispute;
    • The Prime Minister reiterated his previously stated position that the Landlords and Tenants “must sit down and work it out”;

In addition, the Banks must support the Landlords.

In addition, the Banks must support the Landlords.
Should you have any concerns, please contact MMLaw.

The information in this document represents general information and should not be relied on for your specific circumstances. If you require legal advice and assistance on the matters contained or associated in this document you should contact MMLaw.

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Disclaimer

The content published in this Blog is in the form of academic papers and the opinions expressed herein are generalised. The information provided is for educational purposes, not specific legal advice.

The application of any principles referred to can alter from case to case and accordingly you should seek independent legal advice in respect of your individual circumstances.

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