5 June 2020 | Reading time: 2 minutes
On 29 May 2020, Western Australia released the Commercial Tenancies (COVID-19 Response) Regulations 2020 (Regulations). The Regulations, alongside the Commercial Tenancies (COVID-19 Response) Act 2020 (Act), provide clarity on how the National Cabinet’s Code of Conduct is to be implemented in Western Australia.
The Regulations apply from 30 March 2020 to 29 September 2020 (emergency period).
Who do these Regulations apply to?
The Regulations apply to ‘eligible tenants’, who are small to medium enterprises with a turnover of less than $50 million and are either:
Protections for tenants.
The Act prohibits a landlord from taking ‘prohibited action’ against a tenant, if it breaches the lease during the emergency period by failing to:
‘Prohibited action’ includes to:
Landlords are also prohibited from increasing the rent during the emergency period.
Rent relief under the Regulations.
A tenant may make a written application to a landlord with supporting evidence to show it is an eligible tenant.
A landlord must make an offer of rent relief within 14 days of receiving the request. The landlords offer:
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 the Act, 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.