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Breaches of lease during COVID-19

The NSW Government has introduced restrictions on terminating tenancies due to breaches of lease during the COVID-19 pandemic.

On 14 July 2021, the Retail and Other Commercial Leases (COVID-19) Regulation 2021 came into effect.

This regulation limits the ability of landlords to exercise certain options if the tenant has breached the lease. The new Regulation applies if:

The lease is a retail or other commercial lease entered into (or an option is taken) prior to 26 June 2021.

  • The tenant qualifies for specific government grants available due to the impact of COVID-19.
  • The tenant’s turnover in the 2020-2021 financial year is less than $50 million; and
  • The breach is failure to pay rent or outgoings or failure to open for business.

Sadly, the regulation does not provide for any rent relief.

If you need assistance navigating breaches of lease and other related issues in these COVID-19 times – contact our office.

Ross Mason
Author:
Ross Mason
15 Jul, 2021

The information in this article is intended to provide general information only and does not constitute legal advice. If you require legal advice specific to your particular circumstances, you must formally engage a lawyer or law firm. The law is subject to change, and whilst we strive to keep our content up-to-date, developments may occur after publication. The information contained on our website should not be relied upon or used as a definitive or complete statement of the relevant law. Mason Lawyers takes no responsibility for any use of the information provided. Liability limited by a scheme approved under Professional Standards Legislation.

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