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PO Box 161 Kempsey NSW 2440

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Are you having concerns about your commercial lease during the COVID-19 pandemic?


The Retail and Other Commercial Leases (Covid-19) Regulation 2020 has now commenced.

The Regulation provides for good faith leasing principles to apply to commercial tenancies between landlords and tenants. Commercial tenancies include retail, office and industrial leases.

In order for these leasing laws to apply to a tenant, the tenant must prove to their landlord that they meet the criteria under the Regulation. This could include providing information to a landlord to demonstrate a reduction in business turnover.

How does the Regulation help?

  • The Regulation provides a platform for negotiations between tenant and landlord as well as increased protections for the tenant.
  • The Regulation stops a landlord from enforcing a number of rights it would normally have until December 2020 (extended from the October 2020 deadline). That date may be extended. For example, a landlord cannot take action if a tenant doesn’t pay rent, outgoings, or is closed for business.
  • Rent cannot be increased during this period.
  • Landlords must renegotiate rent and other terms of the lease if the tenant requests.
  • Landlords cannot evict a tenant or charge interest.
  • Disputes between the landlord and tenant must go to mediation before proceedings can be commenced.

If you are a landlord or tenant and need advice about how the Regulation could impact your commercial lease, we can assist you.