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ARTICLE · 17 FEBRUARY 2021

COVID-19 | Further COVID-19 tenancy update

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COVID driven regulations have been extended until 28 March 2021 but with some important changes.

AustraliaReal Estate and Construction
Carly Lennan
Carly Lennan
Mary Digiglio
Mary Digiglio
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On 24 September 2020, we published a COVID-19 Tenancy Update regarding the extension of the Retail and other Commercial Leases (COVID-19) Regulation (Regulation) until 31 December 2020. This article can be located here.

On 16 December 2020, the NSW Government has announced the Regulation will be extended again, this time until 28 March 2021. This extension is evidenced by the Retail and Other Commercial Leases (COVID-19) Regulation (No 3) 2020 (Extended Regulation) which commenced on 1 January 2021.

In short, the Regulation gives effect to the National Cabinet Mandatory Code of Conduct - SME Commercial Leasing Principles During COVID19. This Code sets out guidelines to be followed in the granting of rent relief to tenants effected by COVID19, focussing on the principle of proportionality. That is, any rent relief granted to a tenant should be proportionate to that tenant's turnover decline as a result of COVID-19.

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Michael Byrnes, Partner
Phone: + 61 2 9233 5544
Email: [email protected]

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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