Help For NSW Tenants
To continue supporting NSW small businesses, the Retail and Other Commercial Leases (COVID-19) Regulation 2021 (NSW) has been extended to 13 March 2022.
Rent relief may be sought by tenants meeting the following criteria:
An annual turnover under $5 million;
Would have been eligible for the now discontinued JobSaver or Micro-business Grant schemes; and
Have experienced a 30% or more turnover reduction (in the case of a not-for-profit organisation, the turnover reduction is 15%).
Parties should negotiate in good faith. Rent relief in the form of waivers and deferrals should be proportionate to the turnover reduction experienced by the tenant. Mediation is required before a landlord may commence recovery action against a tenant.
Help For NSW Landlords
Support is also available for small commercial or retail landlords who grant rent relief to their eligible tenants. Supports include:
Commercial Landlord Hardship Fund grant which provides grants equivalent to the rent waivers to the maximum of $3,000.00 per month per property; and
Land tax reduction for landlords who had reduced rental income due to COVID-19 between 1 July 2021 and 31 December 2021 equivalent to the waivers provided to tenants (applications must be submitted by 28 February 2022).
Article written by Ruth Tzouras | Paralegal and Licenced Conveyancer