What is it?
Under the Code of Conduct, landlords will be required to reduce rent proportionate to the trading reduction in the tenant’s business caused by the coronavirus pandemic through a combination of waivers of rent and deferrals of rents.
Landlords must offer waivers of rent no less than 50 per cent, while the balance must be in the form of a rental deferral.
The arrangements will be overseen by binding mediation and a mandatory code will be rolled out in each state and territory.
What to do?
Wait for your respective State or Territories government to enact the legislation.
It has nothing to do with the Federal government. They simply passed a guideline on how the States and Territories should shape their legislation.
Is my business eligible?
The business must be:
- a small to medium sized business with an annual turnover of up to $50 million
- eligible for the JobKeeper Payment
Here’s the tricky bit. Only small and medium businesses with $50 million in annual turnover or less, which are eligible for the JobKeeper wage subsidy scheme, can negotiate under the protections in this new code.
Everyone else is expected to pay their rent as normal, and won’t be able to negotiate with landlords under the terms described above.
So, even those businesses not looking to receive wage subsidies are advised to apply for the scheme, as negotiations with landlords could suffer if there’s no official word on whether your business is eligible.