Relief for Commercial Tenants

Mandatory code of conduct.

The government has announced a mandatory code of conduct for commercial tenancies to support SME's that are affected by the coronavirus and using JobKeeper.

A mandatory code of conduct for commercial tenancies has been announced to support small and medium sized business affected by the COVID-19 outbreak.

The Code of Conduct (the Code) outlines a set of good faith leasing principles for commercial tenancies including: 

  • Retail
  • Office
  • Industrial

between:

  • Owners
  • Operators
  • Other landlords
  • Tenants

This Code applies to tenants that are:

  • A small-medium sized business with an annual turnover of up to $50 million
  • Eligible for the JobKeeper Payment

The tenants drop in sales (turnover) will determine the reduction in rent and therefore spreading the burden of the coronavirus effect between both the landlord and tenant.

The policy will include a mutual obligation requirement on the SME and not for profit tenants to continue to engage their employees through the JobKeeper program and if applicable, provide rent relief to subtenants.

Australian and foreign banks, along with other financial institutions operating in Australia, are expected to support landlords and tenants with appropriate flexibility as they work to implement the mandatory Code.

The Government is also waiving rents for all its small and medium enterprises and not-for-profit tenants within its owned and leased property across Australia.

The Code and its principles will be implemented and regulated by your relevant state or territory.

Links to Government Resources

FAQs

The JobKeeper payment is a subsidy provided to employers to continue to pay their employees. Each eligible business will receive $1500 per fortnight, per eligible employee for up to 6 months. This payment must be passed on in full.

The Code of Conduct (the Code) outlines a set of good faith leasing principles for commercial tenancies including: 

  • Retail
  • Office
  • Industrial

The Code of Conduct (the Code) outlines a set of good faith leasing principles for commercial tenancies between:

  • Owners
  • Operators
  • Other landlords
  • Tenants

This Code applies to tenants that are:

  • A small-medium sized business with an annual turnover of up to $50 million
  • Eligible for the JobKeeper Payment.
Relief for Commercial Tenants - Frequently Asked Questions(FAQ)

What is the JobKeeper payment?

The JobKeeper payment is a subsidy provided to employers to continue to pay their employees. Each eligible business will receive $1500 per fortnight, per eligible employee for up to 6 months. This payment must be passed on in full.

Who are the commercial tenancies included in the code of conduct?

The Code of Conduct (the Code) outlines a set of good faith leasing principles for commercial tenancies including: 

  • Retail
  • Office
  • Industrial

Who will need to comply to the new tenancy code of conduct?

The Code of Conduct (the Code) outlines a set of good faith leasing principles for commercial tenancies between:

  • Owners
  • Operators
  • Other landlords
  • Tenants

Which businesses will be able to get rent relief through the mandatory code of conduct?

This Code applies to tenants that are:

  • A small-medium sized business with an annual turnover of up to $50 million
  • Eligible for the JobKeeper Payment.

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