COVID-19 SME Commercial Leasing Principles

Please click on the link below to download your copy of the “Mandatory Code of Conduct (The Code) that was agreed by the National Cabinet on 3rd April 2020. 
The purpose of the Code is to impose a set of good faith leasing principles for application to commercial tenancies (including retail, office and industrial) between owners/operators/other landlords and tenants, in circumstances where the tenant is a small-medium sized business (annual turnover of up to $50 million) and is an eligible business for the purpose of the Commonwealth Government’s JobKeeper subsidy. 
National Cabinet agreed that there would be a proportionality to rent reductions based on the tenant’s decline in turnover to ensure that the burden is shared between landlords and tenants. The Code provides a proportionate and measured burden share between the two parties while still allowing tenants and landlords to agree to tailored, bespoke and appropriate temporary arrangements that take account of their particular circumstances.
Clients are recommended to consult with their lawyers to review their position and how the Code will apply to their landlords or tenants;

Mandatory Code of Conduct - PDF