Rental law changes to shield tenants during coronavirus
Legislative responses to COVID-19 are reshaping legal norms. On 24 March 2020, NSW followed the lead of the United Kingdom and a range of states in the US by passing legislation enabling a moratorium on lease evictions.
The COVID-19 Legislation Amendment (Emergency Measures) Bill 2020 (NSW) passed both houses of Parliament. Item 2.18 amends the Retail Leases Act 1994 (NSW) to authorise new regulations to be made under the Agricultural Tenancies Act 1990 (NSW), Retail Leases Act 1994 (NSW) and all legislation relating to commercial leases to:
- prohibit recovery of possession by a landlord or owner of premises or land;
- prohibit lease termination by a landlord or owner of premises or land;
- regulate or prevent the exercise or enforcement of another right relating to the land by a landlord or owner of premises or land; and
- exempt one or a class of tenants, residents, or lessees from the operation of a provision under the relevant legislation.
Any regulations made under these changes will have two thresholds:
- Parliament must be unlikely to sit within 2 weeks after the regulation is made, and
- the regulations must be in the Minister’s opinion reasonable to protect the health, safety and welfare of tenants, residents, or lessees.
It is intended that the regulations will expire after 6 months, or earlier if the Parliament decides to repeal them. At the time of writing, new regulations have not yet been announced.
The amendments, however, do not specifically address matters such as reduced trading hours or rent relief. Another national cabinet meeting was held on 25 March 2020 – on the agenda was the possibility of offering some rental relief, however it could be several days until details will be finalised. As such, until there is further clarity, landlords and tenants will need to reach commercial agreement regarding any variation to their lease terms.
It is imperative now more than ever to stay tuned to the workings of Parliament to ensure you know your rights during this tumultuous time.
Maurice Doria
Partner
Maurice is a property & projects lawyer with more than 25 years’ experience delivering legal services for clients.
More about Maurice
Jane Baddeley
Partner
Jane practises real estate law with a focus on leasing in the commercial, retail, industrial, education and government sectors.
More about Jane
Natalie Bannister
Partner & Commercial National Practice Leader
Natalie leads the Hall & Wilcox's Commercial practice and has broad experience across many areas of commercial law.
More about Natalie
Katrina Reye
Partner
Katrina is a property & projects lawyer who practises in commercial law and specialises in major property developments.
More about Katrina
Contact
Jordon Lee
Lawyer
Geoff Benson
Lawyer
Harvey Duckett
Lawyer
Luke Denham
Lawyer
Jemima Whiteman
Lawyer
Bradley White
Lawyer
Sarah Khan
Lawyer
Marie Mitilineos
Lawyer
Gloria Tam
Lawyer
Sheldon Fu
Lawyer
Anna Cao
Lawyer
Claire Bourke
Lawyer
Chloe Taylor
Lawyer
Silvana Brcina
Lawyer
Daphne Schilizzi
Lawyer
Andrew Banks
Lawyer
Isabella Urso
Lawyer
Jessica Liu
Lawyer
Amelia Spratt
Lawyer
Luke Raams
Lawyer
Emma McDonald
Lawyer
Carl Ayers
Lawyer
Gus Hu
Lawyer
Rebecca Dodd
Lawyer
Gretel Burns
Lawyer
Rachel Bonic
Lawyer
Samantha Frost
Lawyer
Emma Bechaz
Lawyer
Matt Dolan
Lawyer
Luke Hefferan
Lawyer
Related practices
You might be also interested in...
Property & Projects | 23 Mar 2020
COVID-19 business interruption – advice for landlords and tenants
With state governments announcing comprehensive shut-downs to ‘non-essential’ services due to #COVID19, what happens under a commercial lease to obligations to trade and to make rent payments? Jane Baddeley examines the obligations and options of commercial tenants and landlords.
Insolvency & Reconstruction | 23 Mar 2020
COVID-19 update: Temporary relief for financially distressed businesses – changes to the Corporations Act 2001 (Cth)
The Federal Government has announced a package of changes to Australian insolvency and bankruptcy laws to provide some relief to businesses and individuals who may face financial distress from the economic impacts of the current health crisis.