Government COVID-19 Stimulus
Commercial Rent Relief Measures
o This affects commercial leases only.
o Landlords must not terminate leases due to non-payment of rent during the pandemic period.
o Tenants must remain committed to the terms of their lease..
o To be eligible businesses (as tenants) must have a turnover of $50mil or less AND be eligible for Job Keeper as well.
o Landlords must reduce the rent charged to tenants in proportion to the reduction in turnover that tenants are
experiencing. For example, if a tenant has experienced an 80% drop in turnover, rent will also need to be reduced
o Of this reduction, at least 50% as a minimum will need to be waived.
o The other 50% will be deferred over at least 24 months starting from the first day after the current pandemic status
is slated to end (currently 30 September 2020).
o If the tenant’s lease at that point in time is less than 24 months, it will be extended to at least 24 months.
o The exact proportion of rent waived and deferred can be decided between tenants and landlords, however the
minimum amount mentioned in previous points will still need to be adhered to.
o There must be no interest or any other associated fees charged to tenants in relation to either the waived or
deferred rental payments.
o Landlords must freeze any planned rent increases (except for retail leases based on turnover rent) for the duration of
the pandemic and a reasonable subsequent recovery period, notwithstanding any arrangement between the
landlord or tenant.
o Landlords must not draw on rental bonds paid by tenants to cover non-payment of rent.
o Any reduction in statutory charges (land tax, council rates etc.) or insurance must be passed onto the tenant in the
appropriate proportion applicable under the terms of the lease.
o Landlords should also seek to share any benefits received in the form of a deferral of bank loans payable to financial
institutions with tenants in a proportionate manner.