The WA government has passed its legislation for commercial leases in response to the COVID-19 pandemic. There are significant changes from the proposed National Code of conduct previously agreed between the States and the Federal Government that are likely to impact adversely on commercial landlords.
One such significant change is the eligibility. The National Code proposed that prohibitions on evictions and defaults for non-payment of rent should only apply to those tenants who are eligible for the Federal Government’s JobKeeper program. That is, those tenants who experience a reduction in turnover of more than 30%.
This is not what the WA legislation appears to say and it is unclear if this will be corrected through Regulations. At present, the WA legislation does not have any link to turnover.
This means that tenants who have not experienced more than a 30% reduction in turnover, or any reduction in turnover at all, may still benefit from the prohibition on evictions and defaults for non-payment of rent provided they fall within the scope of leases to which the legislation applies.
To find out more or if you have any queries relating to your commercial lease, please do not hesitate to contact me on 0408 954 570 or at firstname.lastname@example.org.