The NSW Government has re-introduced mandatory rent relief in line with the National Cabinet’s Mandatory Code of Conduct for Commercial Leasing (the Code of Conduct).
The provisions essentially mirror the relief that was put in place during 2020 and include:
- Landlords being required to renegotiate rent under the Code of Conduct. The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover with at least 50 per cent of the decline being in the form of a waiver, and the balance a deferral (usually payable over the remaining life of the lease);
- Commercial and retail landlords required to attempt mediation before locking out or evicting their tenant;
- Eligible commercial landowners being able to apply for relief on up to 100 per cent of their land tax liability for 2021;
- A monthly grant of $3,000 payable to eligible landlords.
These regulations will be in place until 13 January 2022.
More information can be found here.