Relief for commercial tenants under new emergency laws

A new emergency bill will protect commercial tenancies, giving business owners relief as the long road to recovery after the coronavirus pandemic begins.

THE COVID-19 commercial tenancy legislation is another step in managing the significant impact the pandemic is having on Tasmania’s businesses, Attorney-General Elise Archer says.

The Bill’s passing on Thursday night follows another which gives reprieve to residential lease holders.

Ms Archer said the COVID-19 Disease Emergency (Commercial Leases) Bill 2020 gave effect to the Code of Conduct for commercial tenancies, agreed upon by national cabinet last month.

The code governs the conduct of commercial tenants and landlords, and provides additional protections and rent reductions for tenants experiencing financial hardship.

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These measures include the protection of commercial leases for eligible tenants (a tenant who is eligible for the JobKeeper program and has a turnover of less than $50 million per annum); a freeze on rent increases (a lessor must not, unless agreed by the lessee, increase rent for a protected lease during the financial hardship period); rent reductions (the lessor must provide the lessee of a protected lease a reduction in rent in line with the provisions provided in the code); and the establishment of mediation services and a Code Administration Committee to support the code.

The financial hardship period is from April 1 until 12 months after commencement of the Act, or sooner, if the Treasurer determines the code is no longer needed.

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