3 June 2020 | Reading time: 2 minutes
On 28 May 2020, the Queensland Government introduced the Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020 (Regulations).
These Regulations provide clarity on how the National Cabinet’s Code of Conduct (Code) is to be implemented in Queensland.
The Regulations apply from 29 March 2020 to 30 September 2020 (Response Period).
Who do the Regulations apply to?
The Regulations apply to ‘affected leases’, which are leases where:
Note that there are exceptions to this application including leases for a farming business.
The Regulations prohibit a landlord from taking ‘prescribed action’ against a tenant, if it breaches the lease during the Response Period by failing to:
‘Prescribed action’ includes:
However, a landlord can take such prescribed action where:
Landlords are also prohibited from increasing rent during the Response Period.
Offer of rent relief.
A landlord must offer a rent reduction and other proposed changes within 30 days of exchanging the relevant information. The landlord’s offer must:
Formalising revised rent.
Any commercial agreement reached between the parties should be carefully documented by way of a Deed of Variation to ensure it is binding between the parties and their successors.
The Deed of Variation should include provisions regarding:
We can help.
If you are renegotiating your lease, we can help you navigate this process in line with the Regulations, and assist you to draft a Deed of Variation covering the important points listed above.
For details of all of our COVID-19 tips and updates, visit the Bespoke COVID-19 Hub.