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Highlights
- The NSW government has extended the code of conduct, giving rent deferrals and waivers to the commercial tenants.
- Businesses from several industries have gone through a rough patch during Christmas and New Year.
- The commercial and retail landlords can access the Commercial Landlord Hardship Fund for a monthly grant of up to AU$3,000 per property.
Businesses from several industries have gone through a rough patch this year, especially during Christmas and New Year. As a result, the NSW government has taken a step to support small businesses affected by the pandemic by extending the code of conduct, giving rent deferrals and waivers to the commercial tenants.
The NSW government has extended the commercial rent relief for the business with a turnover of less than AU$5 million until 13 March 2022.
This is a two-month extension of a rental policy, which was first implemented in 2020. Under the policy, 50 per cent of any rent relief must be in the form of a rent waiver with the remaining balance as a rent deferral.
Although the Federal government has extended the code in various jurisdictions, NSW was among the last states to do so.
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As per the regulations, landlords must negotiate rent relief with the eligible commercial tenants who had a turnover decline of 30% or more. Anyone who meets this specific criterion would qualify for Jobsaver or Microbusiness grant and be granted rent relief.
Meanwhile, the commercial and retail landlords can access the Commercial Landlord Hardship Fund. This fund will provide a monthly grant up to the value of any rental relief provided, to a maximum of AU$3,000 per month per property.
The regulations also ensure that the commercial tenants and the landlords share the economic impact to limit the economic damage of COVID-19.
