National Cabinent’s Mandatory Code of Conduct for Commercial Leasing re-introduced to protect landlords and their tenants during COVID

1:00pm Bowra St, Nambucca Heads empty of patrons with small businesses closed or take-away only


THE National Cabinet’s Mandatory Code of Conduct for Commercial Leasing has been re-introduced by the NSW Government.

This mandates rent relief for eligible tenants impacted by COVID-19.

Alongside this is the new Hardship Fund, providing a monthly grant of up to $3 000 for small commercial or retail landlords who provide rental waivers to at least the value of the grant plus any land tax relief they are eligible for.

Regulation 2021 Minister for Finance and Small Business Damien Tudehope advised that protection for small businesses will be provided for six months by the extension of the Retail and Other Commercial Leases (COVID-19) The Regulation will be extended until 13 January 2022.

Minister Tudehope said, “We have always encouraged landlords and tenants to come to the table and negotiate, but now we are going one step further by mandating the minimum relief that landlords need to provide impacted tenants.

“It has been very tough for small businesses across NSW and we want to deliver more certainty for business owners who have bills continuing to pile up.

“We have ensured small landlords who rely primarily on rental income from commercial properties will also be able to access a monthly $3,000 grant to help ease the burden and ensure they pass on rental relief to tenants.”

The National Cabinet’s Code of Conduct requires landlords to adjust rent and provide relief in proportion to the decline in turnover in businesses in the rented premises.

At least 50% must be in the form of a waiver, the balance a deferral.

The Retail and Other Commercial Leases Regulation (COVID-19) Regulation 2021 will require landlords to renegotiate rent in line with the above National Cabinet’s Code of Conduct.

This Regulation is applicable to commercial and retail tenants with a turnover of up to $50 million who are able to apply for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment.

Landlords are prohibited from evicting or locking out a tenant for certain breaches of lease unless they have renegotiated rent and attempted mediation first.

More information for landlords and tenants will be available on the Service NSW website.

For more information on mediation support and the Small Business Commission visit:

For more information on support available for businesses visit:

For more information on land tax relief visit:



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