Further rent relief regulations have been released in NSW granting protection against lease termination and requiring parties to renegotiate rent.
An eligible tenant (impacted lessee) must:
- qualify for either of the Micro-business COVID-19 Support Grant, COVID-19 NSW Business Grant or JobSaver Grant;
- have a turnover (includes turnover derived from internet sales) for the 2020/2021 financial year of $50 million or less; and
- have entered into their lease before 26 June 2021.
The impacted lessee must produce evidence of their eligibility to their landlord.
The period of protection runs from 13 July 2021 to 13 January 2022 (prescribed period).
Relief for Tenants
Landlords and tenants are expected to renegotiate the rent and other items of the lease in consideration of the economic impacts of Covid-19 and the leasing principles set out in the National Cabinet Mandatory Code of Conduct released in April 2020.
During the prescribed period there is to be no increase in rent. A landlord must not take action (such as eviction or termination of the lease) against the tenant for unpaid rent or outgoings during the prescribed period unless the parties have first attempted mediation.
Relief for Landlords
Landlords that provide rent relief to impacted lessees may be eligible for land tax relief of up to 100% of their 2021 land tax liability. The NSW government is also offering various grants to eligible landlords as a financial incentive to grant rent relief to tenants. Discuss your eligibility for any Government support with your Accountant.
If you need advice about your lease or circumstances, please contact us.