The Federal Government announced this week a SME
Commercial Leasing Principles Code of Conduct ("the
Code") to assist tenants with loss of revenue as a result of
the COVID-19 pandemic. The Code intends that landlords will agree
on temporary arrangements for each tenancy based on good-faith*
leasing principles and proportionality.
Since the COVID-19 crisis
escalated last month, many tenants had already commenced
negotiations with landlords regarding rent reductions but now the
Code gives the parties a clear framework going forward with these
negotiations.
Who does the Code apply to?
The Code applies to commercial tenants with an annual turnover
of $50 million or less who have experienced a 30% or greater loss
in revenue and where the tenant is participating in or will
participate in the JobKeeper Program.
