Extension of Relief for Tenancies Impacted by COVID-19 Pandemic

Commencing on the 1st January, 2021 the Retail and Other commercial Leases (COVID-19) Regulation (No 3) 2020 came into operation.

Members will be aware that since April 2020 tenants that have qualified for receipt of monies under the JobKeeper scheme have been able to negotiate a reduction in their rental payments to landlords consistent with the reduction in turnover experienced by the tenant’s business  during the pandemic.

The new regulations continue the rights of tenants to renegotiate their rental payments provided that the tenant’s Business continues to qualify for payments under the JobKeeper scheme. However, the new regulations bring about two (2) significant changes
  1. The regulations have been extended to the 28th March, 2021
  2. The Regulations now apply to businesses whose turnover in the 2018-2019 Financial year was less than five million dollars ($5,000,000). This turnover is reduced from the previous turnover test of Fifty million Dollars ($50,000,000)

What does this mean for Members
Members whether they happen to be a landlord or a tenant should review their present lease agreement to consider if their tenancy fits within the new guidelines for tenancies who are entitled to continue with the rent relief provisions under the Regulations.

In the event that a tendency does not fit within the new guidelines, then the obligations under the lease agreement recommence from 1st January 2021.

If any member has a further question or querie surrounding the operation of the new regulations then please contact Stephen Jenkins (General Counsel) on (02) 90169031 or at [email protected]

Yours faithfully,

Employment Relations Department
Motor Traders’ Association of NSW
P: 02 9016 9000
E:[email protected]
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