New Victorian Regulations designed to mitigate the effect of the
COVID-19 (coronavirus) pandemic on "eligible leases" in
Victoria have finally been released. They shall apply
retrospectively from 29 March 2020.
A Mandatory Code was announced by the Federal Cabinet in April
2020, but this contained high level "leasing principles"
only and did not represent the law in Victoria.
The new Regulations provide much needed legislative clarity on
the specific rights and obligations of commercial tenants and
landlords in Victoria during the COVID-19 pandemic. The Regulations
broadly follow the scheme of the Mandatory Code, but with a number
of important exceptions.
These exceptions include that the amount of rent relief offered
by landlords to tenants does not need to be
directly proportional to the reduction in the tenant's turnover
– arguably a win for landlords. Also, a formal rent relief
offer process must be followed in order for the tenant to avoid
being evicted,
