On 23 September 2020, the NSW government announced that as a result of the continuing impact of COVID-19 on businesses, the Retail and Other Commercial Leases (COVID-19) Regulation (Regulation) will be extended to 31 December 2020. The Regulation was due to expire on 25 October 2020.
Eligibility will need to be re-established by tenants under the extension to the Regulation if they intend to request further rent relief, with landlords obliged to respond to a tenant’s request for further rent relief within a reasonable time frame.
Meanwhile, eligible landlords will also be able to receive up to 25% land tax concessions on relevant properties in circumstances where they provide rent relief to tenants in financial distress between October and December. This new concession is in addition to the concession provided to landlords that provided rent relief between April and September. The concession will be applied to any unpaid 2020 land tax liability and refunds will be issued for payments already made this year.
The extension means that landlords and tenants can now continue to engage in negotiations without the fear that the protections will end on 25 October 2020.
If you have any questions or would like to discuss the Regulation, please do not hesitate to contact us.