The Latest on covid19 commercial property legislation

​Last night the Federal Government passed the COVID-19 Omnibus Bill which includes important commercial and residential tenancy changes. The code comes into effect in all states and territories after 3 April 2020 for the period during which the Commonwealth JobKeeper program is operational. 

We've summarised the key aspects of the legislation regarding commercial leasing:
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• A six-month moratorium on commercial tenancy evictions for the non-payment of rent for small to medium enterprises with an annual turnover under $50 million that have experienced a minimum 30 % reduction in turnover due to COVID-19, commencing 3 April, 2020.
• A freeze on rent increases during the moratorium
• A rental payment waiver or deferral proportionate to commercial tenants’ income reduction due to  COVID-19, to be negotiated between the tenant and landlord
• A mediation service for commercial tenants and landlords, accessed through the VSBC, to support fair tenancy negotiations.

Read more about the Code of Conduct here
Read the entire Omnibus Bill here

* We will provide further updates once we hear from the Victorian Government.

An important point to finish on, whilst tenants and landlords should commence negotiations and attempt to come to a temporary arrangement, remember that your circumstance may change so don't finalise everything now.
The agreement should be based on what is known now, with further conversations to take place in the months to come and when individual circumstances become clearer.

YOU'RE NOT ALONE!
Tenants globally are in the same boat!

BRM is here to answer your questions, help you understand the government initiatives and ensure you are in the best position for the immediate, short and mid term as we trade out of this crisis together.

Please contact our expert property team if you wish to discuss your specific situation and we'll be happy to help.