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NSW & VIC COVID-19 Legislation – Commercial lease update

Market Insights

NSW Legislative Assembly to sit on 12 May 2020 – To adopt Mandatory Tenancy Code and consider NSW COVID-19 affected commercial/retail tenancies

On 23 April 2020, it was announced that the NSW Legislative Assembly has been recalled on Tuesday 12 May 2020.

https://www.parliament.nsw.gov.au/news/Documents/Jonathan%20O%27Dea%20med%20rel%2023042020%20-%20Statement%20by%20the%20Speaker%20Recall%20of%20Parliament.pdf

The COVID-19 Legislation Amendment (Emergency Measures) Act 2020 in NSW provides that regulations respect to COVID-19 affected commercial/retail leases can only be made if parliament is NOT sitting or NOT likely to sit within 2 weeks after the day of the regulations are made.

Accordingly the adoption of the Code and Commercial lease relief measures in NSW will most likely be in the form of a draft bill debated in parliament mid-May.

VIC Legislative Council commit on 23 April 2020 to COVID-19 Bill in response to Mandatory Tenancy Code

Simultaneously, the COVID-19 Omnibus (Emergency Measures) Bill 2020 (VIC) was committed to by the Legislative Council of the Victorian State Government today; which, temporarily provides for the Governor in Council, on the recommendation of the Minister for Small Business to make Regulations to adopt the Mandatory Code and modify the application of Victorian law to deal with “Eligible Leases” in response to the Covid-19 Pandemic. The Regulations may have effect over both statutory law and the common law, and are proposed to have retrospective effect to a date not earlier than 29 March 2020.

Link to Attorney General Media Release of 21 April 2020
https://www.premier.vic.gov.au/temporary-emergency-measures-to-manage-coronavirus-crisis/

Link to the Bill and Explanatory Memorandum.
https://www.legislation.vic.gov.au/bills/covid-19-omnibus-emergency-measures-bill-2020  

This article was written by Kendra McKay, Partner, Alexandra White, Partner and Maged Jebeile, Special Counsel.

Important Disclaimer: The material contained in this publication is of general nature only and is based on the law as of the date of publication. It is not, nor is intended to be legal advice. If you wish to take any action based on the content of this publication we recommend that you seek professional advice.

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