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Compulsory mediation requirements extended for commercial leases

Commercial tenant and landlord mediation requirements extended until 30 June 2022

8 March, 2022

The Retail and Other Commercial (COVID-19) Regulation 2022 has extended compulsory mediation provisions for eligible small businesses until 30 June 2022

The regulation has extended the requirement for mediation until 30 June 2022 for eligible commercial tenants with an annual turnover of less than $5 million.  The extension of the Regulation continues support for commercial leases including those not covered by the Retail Leases Act.  

It is important that landlords and tenants understand that the extended regulations do not provide directions in respect to rent relief or rent deferment. 

NSW Small Business Commissioner Chris Lamont said mediation between landlords and tenants had been highly successful and had assisted in keeping many small businesses in business during the COVID-19 pandemic.

“Mediation conducted in good faith can present both sides with practical solutions that allow landlords and tenants to continue a relationship, despite the challenges faced from the COVID-19 pandemic,” Mr Lamont said.  

Landlords may be able to access the Commercial Landlord Hardship Fund, which has been extended to 13 March 2022. The fund provides small commercial and retail landlords with a monthly grant equal to the value of any rent waivers provided, to a maximum of $3,000 per property, per month. Property owners who were previously ineligible for this grant due to land tax relief may now apply. 

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