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ARTICLE · 16 JUNE 2020

Temporary FIRB changes during COVID-19 – Impact on commercial leases

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The FIRB framework applies to leases of Australian land that exceed five years, where the tenant is a foreign entity.

AustraliaReal Estate and Construction
Lindsay McGregor
Lindsay McGregor
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Temporary FIRB changes during COVID-19 – impact on commercial leases

In this historically challenging time for the Australian economy, the Government announced new Foreign Investment Review Board (FIRB) temporary measures, effective from 10:30pm on 29 March 20201, in pursuit of protecting the national interest.

Under this change, all thresholds which usually apply under the FIRB Act for determining whether the framework applies, have been replaced with $0. This is a significant change for both landlords and tenants in the commercial leasing sector. So, does this apply to you?

Leases

The FIRB framework applies to leases of Australian land that (including any options terms) are reasonably likely to exceed five years where the tenant is a foreign entity. This will apply to many lease agreements nationwide. Given that the notification threshold for developed commercial land (being the total monetary value of the costs of a lease within a building) has now dropped

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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