New Support for Tenants and Landlords Impacted by COVID-19

The NSW government has announced that it will reintroduce the National Cabinet’s Mandatory Code of Conduct for Commercial Leasing, to enforce rent relief for eligible tenants that have been impacted by COVID-19. This will be extended until 13 January 2022, and requires landlord to renegotiate rent to provide relief proportionate to the tenant’s loss of income. The rent relief should contain at least 50% in rent waiver, with the remaining being deferred.

Eligible tenants are those with turnovers of up to $50M per annum, who qualify for the COVID-19 Microbusiness Grant, the COVID-19 Business Grant, or JobSaver Payments.

 These provisions also prohibit landlords from evicting or locking out tenants for certain breaches, without first negotiating rent relief, and attempted mediation.

 To assist landlords meet this obligation, a new $40M Hardship Fund has been set up by the NSW government to provide monthly grant of up to $3,000 for small landlords who provide rent waivers for at least that amount. 

 Eligible property owners are also able to apply for land tax relief of up to 100%, if they provided rent reduction to their tenants between 1 July 2021 and 31 December 2021 for at least the amount of relief claimed.

If you are unsure as to how this may affect you, or if you are unsure about the grants available, please contact our team.