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今天维省的legislation passed 了
Victorian State Government – Legislation passed, Regulations to be finalised
This afternoon the Victorian State Government passed legislation in line with the national mandatory code (a copy of the national mandatory code is attached to this email). This legislation sets out the obligations of both the Landlord and Tenant in a situation where the tenants business has been significantly affected by the Covid-19 Pandemic.
This legislation allows for the creation of state government regulations based on the national mandatory code. We expect these regulations to be finalised within the week.
As is it stands the national mandatory code sets out that:
Tenants will be protected under the mandatory code should they be able to substantiate through sufficient and accurate information that they have experienced a significant downturn in revenue attributable to the Covid-19 Pandemic. This includes being registered and qualifying for the Job Keeper Program. A 30% or more decline in revenue is the benchmark for qualification.
Landlords will be obligated to provide proportionate rent relief to tenants that meet the above criteria. This rent relief must include a minimum of 50% of the rent waived, that is rent free, with the balance deferred to be payable at the conclusion of the declared pandemic.
Tenants will have a minimum of two (2) years to repay the deferred rent after the Covid-19 Pandemic has come to an end.
Tenants will have the right to extend their lease for the period of the rent relief agreement should they wish to.
Landlords will not be able draw on security deposits or bank guarantees to repay the waived or deferred rent.
Landlords, if receiving a reduction in statutory outgoings, should pass a proportionate reduction onto their tenants.
We believe that the state government regulations will mirror the principles set out above, however until finalised we recommend holding off on entering into agreements between Landlord and Tenant. This to protect you and to ensure that both parties enter a transparent and binding agreement.
Having to provide rent relief to my tenant is going to be difficult for me – what options do I have?
We understand that this is an incredibly difficult time for everyone, and as Landlords, the financial impact of a tenant seeking relief is significant.
We are in this with you; our business is also significantly affected when a tenant doesn’t pay rent as our office does not generate fees.
The national mandatory code is heavily weighted to protect tenants, and at the expense of Landlords. The legislation that has been passed states that a Landlord must provide this relief; and if they do not that they would be found in breach of this legislation.
Likewise, should a tenant not act in good faith, fail to provide sufficient and accurate information or meet their obligations under the legislation, they too can be found in breach.
Unfortunately, in many cases we know that this is going to affect you greatly. Please reach out to your Property Manager; they will walk you through your obligations as well as your rights to assist you in making an informed decision about how to proceed.
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