The code has been agreed and once legislated will apply to tenancies where either the landlord or the tenant is eligible for the JobKeeper program.
Flagged last week, the Prime Minister said the state treasurers have agreed on a code for commercial tenancies for small to medium businesses with the aim to ensure tenancies are maintained throughout the hibernation period.
“It is agreed by National Cabinet today that a mandatory code will be legislated and regulated in each state and territory jurisdiction.
“That mandatory code will apply to tenancies where the landlord or tenant is eligible for the JobKeeper program and where they have a turnover of $50 million or less,” PM Scott Morrison said.
He explained that the code is designed to protect the small and medium enterprises, be they a tenant or a landlord.
Under the code, landlords will be required to reduce rent proportional to tenants’ trading reductions, via waivers and lease extensions.
“The code brings together a set of good faith leasing principles. Landlords must not terminate the lease, and tenants must honour the lease.”
More details to come.