$220 million has been allocated to relieve commercial and retail businesses and landlords, whilst another $220 million has been allocated for residential lease assistance.
The assistance applies to tenants who have lost 25 percent or more of their income.
This scheme stipulates that the landlord or agent must enter into negotiations with the tenant, when the tenant is unable to make their rental payments.
Moreover, tenants who are eligible for the assistance will not be blacklisted due to growing rental arrears during this time. Landlords who have already applied to evict their tenants, must now wait 60 days for processing of applications.
Further Measures
Under these new measures for New South Wales, commercial landlords will be offered a concession of up to 25 percent of their 2020 land tax liability. This applies only if they pass on the saving through a reduction in rent for tenants.
Those who claim the concession will also be offered further land tax deferral for any outstanding amounts for a three-month period. However, it’s important that both landlords and tenants understood the changes only applied to businesses significantly impacted by COVID-19.
The code and package will come into effect as soon as possible.
When it comes to aiding negotiations for lease agreements, the government is also providing assistance. Up to $10 million will be made available to employ mediators to assist landlords and tenants reach an outcome, if they cannot settle between themselves.
Commercial Tenant Advisory
However, another option is to hire a commercial tenant advisory like Niche Tenant Advisory. We’ll help you negotiate your Sydney commercial lease with your landlord or mediate a lease surrender where necessary.
To discuss a commercial lease renegotiation or commercial lease surrender, get in touch with Niche Tenant Advisory here.
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