Mandatory code to allow relief for tenants eligible for Job Keeper

Article By: Sarah Cappello, Partner Cappello Rowe Lawyers Sydney


On Tuesday 7 April the National Cabinet agreed on a mandatory code for commercial landlords and tenants. The code will apply to tenancies where either the landlord or the tenant are eligible for the JobKeeper Program with turnover of $50M or less.

For more information from Cappello Rowe Lawyers on the JobKeeper program click here

The mandatory code is aimed at small and medium enterprises and is designed to ensure that tenancies are maintained during the hibernation period.

Some key features of the code;

  • Rent is to be reduce in proportion to the tenant’s trading reductions;
  • The parties can agree to reduce rent either by waiver or a lease extension.
  • Waivers of rent must account for at least 50% of the reduction in rental relief provided to the tenant while deferrals must be covered over the balance of the lease period and for no less than 12 months.

With a focus on ‘preserving the lease and preserving the relationship’ the states will run a binding mediation process governing compliance with the code.


What to do if you are eligible

The first step is to review your current lease terms and understand what your present obligations are. Once you have a handle on your obligations you can then assess what impact COVID-19 has had on your business in particular its turnover.

To commence the negotiation process we recommend contacting your landlord either in person or in writing.

Cappello Rowe Lawyers can assist with the process including reviewing the terms of your lease and facilitating the negotiation process.

If you are unsure if your business is eligible contact us to discuss on 6962 3433 or via email at