We refer to our recent alert that was published on 9 September 2020.
The rent relief provisions under the COVID-19 Emergency Response (Commercial Leases No 2) Regulations 2020 are due to expire on 30 September 2020. However, a second prescribed period (Period 2) has now been legislated, which extends the rent relief provisions.
The COVID-19 Emergency Response (Commercial Leases No 2) (Prescribed Period) Variation Regulations 2020 were gazetted on 25 September 2020 and come into effect on 1 October 2020. Therefore, Period 2 will start on 1 October 2020 and end on 3 January 2021.
The extension to the rent relief provisions under the COVID-19 Emergency Response (Commercial leases No 2) Regulations 2020 will only apply to those that can prove they remain an affected lessee or have become one during Period 2.
An affected lessee will be a lessee who is suffering financial hardship as a result of the COVID-19 pandemic and has an annual turnover of less than $50 million. A lessee will be automatically determined to be suffering from financial hardship if the lessee is eligible for a JobKeeper payment in respect of the business of the lessee. For more information relating to the JobKeeper criteria, please read our previous alert ‘Administering the JobKeeper Vaccine for Employers’.
If you seek further information or advice about how this may affect your situation, please contact one of our property experts via the details provided below.
