QLD's Regulatory Support for Commercial Tenants

In response to the Federal Government’s release of a Code of Conduct regulating commercial leases, the Queensland Government has introduced regulations under the COVID-19 Emergency Response Act 2020.

To be eligible for protection under the act, your lease must be deemed an affected lease under the act.

What is an affected lease?

  1. Under the regulation, a lease is considered an affected lease if it meets all the following criteria:
  2. It is a retail shop lease or a lease for carrying on the business of the tenant;
  3. It was current when the regulations commenced (28 May 2020);
  4. It is a lease of a premises where the tenant carries on business or is a non-profit body in the current financial year;
  5. The tenant’s turnover was less than $50 million for the 2018-19 financial year or is likely to be under $50 million for the 2019-20 financial year;
  6. The tenant is eligible for, but not necessarily enrolled in, the JobKeeper Payment scheme.

Relief for affected Lessee:

  1. During the response period defined under the regulation (29 March to 30 September 2020), if your lease is an affected lease:
  2. You may not be evicted or have your lease terminated for non-payment of rent or outgoings;
  3. Your rent must be reduced in proportion to your lost turnover (at least 50% of the rent reduction offered must be in the form of a waiver leaving the rest to be deferred);
  4. Your rent may not be increased;
  5. You may not be penalised for reducing trading hours or not opening;
  6. Your landlord may not make a claim on a bank guarantee or security deposit for unpaid rent or outgoings.

Source thanks to Robbins Watson Solicitors, here.
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