If your business has been impacted by COVID-19 and you are struggling to pay your commercial lease, the new National Cabinet Mandatory Code of Conduct (the Code) could help.
The Code will apply to tenants impacted by COVID-19 who are eligible for the JobKeeper payments.
Things to consider:
- If your business is affected, you should get in touch with your landlord and begin negotiations, keeping the Code’s principles in mind.
- Be alert for updates on both the JobKeeper Scheme and the Code of Conduct.
- Continue to carry out your obligations under your lease where possible, including paying the rent. Once you have negotiated the changes to the agreement, you are required to meet the new terms.
- There is a freeze on increase of rent except where the rent is based on turnover. This freeze will extend into the reasonable subsequent recovery period.
