Monday 08 June 2020

QLD Government COVID Regulation Update 5.6.2020

Business and family life as we know it has changed, hopefully just for the time being.  We have spoken to many businesses these past few weeks and are pleased that most are back trading, albeit, the way we are all trading has slightly altered, particularly for our retail partners.

All states have now legislated the Federal Government's Code of Conduct for our industry.  Business Australia has summarised rent relief for each state in their Business Guide to Coronavirus.  It will affect many Landlords in regards to how they negotiate with their Tenants who are seeking relief.

The Queensland Government has legislated the Federal Government's Code of Conduct for Commercial Tenancies under the COVID-19 Emergency Response Act 2020.

The Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020 (the regulation) came into effect on 28 May 2020. This regulation implements the National Cabinet mandatory code of conduct - SME commercial leasing principles during COVID-19 (PDF, 235KB) (the Code). The main purposes of this regulation are to:

• mitigate the effects of COVID-19 on small business tenants and landlords under affected leases

• establish a process for resolving lease disputes.

The Code is given effect, and the regulations apply, to lease arrangements between 29 March 2020 and 30 September 2020.

During this period, businesses with affected leases:

• may not be evicted or have their lease terminated for non-payment of rent or outgoings

• must have rent reduced in proportion to their lost turnover (at least 50% of the rent reduction offered must be in the form of a waiver, leaving the rest to be deferred)

• may not have their rent increased

• may not be penalised for reducing trading hours or not opening

• may not have a claim made by their landlord on a bank guarantee or security deposit for unpaid rent or outgoings.

 

Note: The information on this page is not specific legal advice and you should seek expert advice for your situation. This material is not specific to individual circumstances and does not replace the detail in the regulation. Refer to the regulation for further information.