Updated: Jan 5, 2021
In late May, the Queensland Government passed regulations to implement the National Cabinet’s Commercial Leasing Principles (Regulations) - see Article here
Originally, the Regulations were only to apply for the period to the end of September (Emergency Period) and to any retail shop lease or other commercial lease with a tenant that is both a small or medium enterprise and eligible for the Jobkeeper scheme however on 29 September 2020, the Queensland Government extended the Emergency Period for rental relief under the Regulations to 31 December 2020 (in line with the extension of time to the Jobkeeper scheme) with some further changes.
What has changed?
The agreed rent reduction for the extension period can still be a combination of a waiver and deferral, however the combination required to be offered by the landlord no longer has to contain a minimum of 50% waiver of rent. Rent reductions can be any combination of waiver and/or deferral of rent.
Some dates have shifted from 1 October 2020 to 1 January 2021 (e.g. taking of a prescribed action such as drawing on a bank guarantee and repayment of deferred rent for the extension period).
Rent deferred during the response period is still due to be paid on 1 October 2020, unless agreed otherwise.
If you are a landlord or tenant who requires advice on how the extension of the Regulations affect you, please contact a member of our commercial team to discuss your options further.