Way back in April 2020 the NSW government created regulations bringing into effect the National Cabinet Mandatory Code of Conduct (the Code) which regulated the negotiation of rent relief (among other things) for tenants affected by COVID-19 shutdowns. We wrote about it here.
Eighteen months on and the regulations have been extended, amended and repealed more times than we’ve cancelled our holiday plans.
In response to the latest Delta-inspired lockdown, everything old is new again as NSW resuscitates the principles of the Code. Here are the key takeaways for this time around:
It applies to tenants with 20/21 turnover of less than $50 million, and who qualify for either of the 2021 COVID-19 Microbusiness Grant; 2021 COVID-19 Business Grant; or 2021 JobSaver payment.
The applicable period is from 13 July 2021 to 13 January 2022.
A tenant has the right to request a landlord to negotiate proportional rent relief, based on the decline in the tenant’s turnover.
At least half of any rent relief should be a waiver, with the remainder being a deferral.
Landlords cannot increase rent during the period.
Landlords cannot terminate a lease for non-payment of rent without trying meditation first.
But wait, there’s more! This time there is a sweetener for landlords. A landlord who provides rent relief to a qualifying tenant will receive a waiver of their land tax for the same amount as the rent relief.
