The NSW Small Business Comissioner reports today that the Premier has announced extended rent relief measures for commerical tenants and monthly grants and land-tax relief for commercial landlords.
A new $40 million Hardship Fund will also be established to provide a monthly grant of up to $3,000 for small commercial or retail landlords who provide rental waivers of at least the value of the grant and any land tax relief they are eligible for.
The Retail and Other Commercial Leases (COVID-19) Regulation 2021 will be extended until 13 January 2022 and will require landlords to renegotiate rent having regard to National Cabinet’s Code of Conduct.
NSW Small Business Commission
What is required of landlords?
The Code of Conduct requires landlords to provide rent relief in proportion with their tenant’s decline in turnover. Of the rent relief provided, at least 50 per cent must be in the form a waiver, and the balance a deferral.
Who is eligible?
The Regulation applies to commercial and retail tenants with a turnover of up to $50 million who qualify for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment. It will prohibit a landlord from evicting or locking out a tenant for certain breaches of the lease unless they have first renegotiated rent and attempted mediation.
Eligible commercial landowners are able to apply for relief on up to 100 per cent of their land tax liability for 2021. To be eligible, thelandowner must have reduced rent for the affected tenant by at least the amount being claimed for any period between 1 July 2021 and 31 December 2021.
Additional funding for affordable mediation
The NSW Government has also provided funding to the NSW Small Business Commission to provide additional staff to meet the demand for mediation and assist retail and commercial tenants and landlords to discuss discounts or renegotiating rents.
The previous Retail and Other Commercial Leases (COVID-19) Regulation 2021 – which required commercial and retail landlords to attempt mediation before locking out or evicting their tenant – was due to expire on 20 August 2021 and has been amended to include these new measures.
The NSW Small Business Commissioner will have more information for landlords and tenants soon.
Further information from NSW Small Business:
- COVID-19 support package for small business
- How does mediation work
- Apply for COVID-19 land tax relief
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