COVID-19: Retail and Commercial Leasing Emergency Relief Prescribed Period 2

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.

For more information, please contact:
William Esau

William Esau
p.  +61 8 8124 1955
e.  Email me

This communication provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Should you wish to discuss any matter raised in this alert, or what it means for you, your business or your clients' businesses, please feel free to contact us.

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