Commercial leasing extension

The Government has announced that the Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020 that was due to expire on 30 September 2020 will be extended to 31 December 2020.

The regulatory provisions for a lessor and lessee will largely remain the same including a moratorium on evictions. However, one significant change is that a lessor will not be required to offer % of rent relief in the form of a rent waiver. 

Over the last few months the Property Council has been vocal in its opposition to the extension of these regulations and has argued the case for further land tax rebates.  Last week’s mini-budget contained an extension of the land tax rebates with landlords having until February 26 to apply for the rebate.

Prior to finalising the revised regulation the Government will again carry out targeted consultation with stakeholders including the Property Council.  In the lead up to the first regulation in May, the Property Council provided multiple submissions to the Government through the initial consultation process.

The Property Council will provide further updates to members when the regulation is finalised.