Small businesses eligible for rent relief under the COVID leasing regulations will be able to seek relief until 13 March 2022, to help support them through the current phase of the COVID-19 pandemic.
The Retail and Other Commercial Leases (COVID-19) Regulation 2021 rent relief provisions will continue for eligible businesses with a turnover of less than $5 million that would have met the eligibility criteria for JobSaver or the Micro-business Grant, which ended on 30 November.
The regulations require landlords to negotiate rent relief with eligible commercial and retail tenants that are experiencing a turnover decline of 30 per cent or more (or 15 per cent or more for not-for-profit organisations).
As a starting point, rent relief should be in proportion to the eligible tenant’s decline in turnover, with at least 50 per cent in the form a waiver, and the balance a deferral.
Landlords and tenants are also required to renegotiate rent and undertake mediation before certain actions may be taken against tenants, like evictions or recovery of security bonds.
Please contact our office and speak to Wade Thomas if you require any assistance or require further information in relation to your rights and obligations on your commercial and retail tenancy.