The NSW Government has just announced a further extension of the measures which were established to assist Tenants and Landlords that have been financially disadvantaged as a result of COVID-19.
The extension of the commercial leasing measures forms part of the NSW Government’s $16 million in health and economic stimulus measures, with the goal of striking a balance between providing adequate support to both Tenants and Landlords alike. In addition, the NSW Government has also announced a $10 million boost to the NSW Small Business Commission to enable them to deliver more mediation and advisory services to assist Tenants and Landlords in reaching agreements.
Whilst the Retail and Other Commercial Leases (COVID-19) Regulation 2020 was due to expire on 24 October 2020, it will now be extended to 31 December 2020 in NSW.
How to establish eligibility for tenants?
In accordance with the extension, Tenants will need to re-establish their eligibility under the Regulation if they wish to seek further rent relief. It is then the responsibility of the Landlord to respond to the Tenant’s request within a reasonable timeframe.
New Concession for Landlords
Additionally, Landlords will be eligible to receive a Land Tax Concession of up to 25% where they provide rent relief to Tenants in financial distress between the months of October and December. Eligible Landlords will need to apply for the concession on any relevant properties where they have passed on the savings to their tenants in the form of a reduction in rent.
The introduction of the new concession will be in addition to the concession provided to Landlords who provided a rent reduction to Tenants between April and September 2020. The concession will be applied to any unpaid 2020 land tax liability and refunds will be issued accordingly for any payments which may have already been made this year.
If you require more information on the above please contact Ben Wong on email@example.com or by phoning 02 4626 5077.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.