COVID-19 - The latest in legal developments for 2021
11 January 2021
We wish you a happy New Year and the best for the year to come.
The beginning of the year is a good time to familiarise oneself with the latest in the various legal reforms and schemes that have resulted from the COVID-19 pandemic. This bulletin will assist you to keep up to date.
COVID-19 leasing regulations extended until 28 March 2021
The NSW Government has extended the Retail and Other Commercial Leases (Covid-19) Regulation 2020 from 31 December 2020 until 28 March 2021.
To recap, the regulations introduce a rent relief mechanism for tenants financially impacted by COVID-19 where the relief is to be proportionate to their downturn. To enable the relief to be applied, the regulations require good faith negotiations be entered into between landlords and tenants. The regulations were introduced on 7 April 2020 and were set to expire on 25 October 2020 and were extended until 31 December 2020. They have now been extended further until 28 March 2021 for retail leases only (importantly, the "prescribed period" for commercial leases still ended at 31 December 2020).
Tenants will have to re-establish their eligibility under the regulations to benefit from any further negotiated rent reduction for the new extension period. Information on the extension can be found on the relevant government website here. We summarise the application of the initial regulations here.
The NSW Government has also produced a FAQ with details on the two extensions to the regulations (from 26 October 2020 to 31 December 2020 and now from 1 January until 28 March 2021) which can be found here. Our update on the extensions can be found here.
JobKeeper extended until 28 March 2021
The JobKeeper Scheme has also been extended. There have now been two separate extension periods which each involve separate applications of the turnover test and rate of JobKeeper payments.
The first extension period took effect from 28 September until 3 January 2021 and the current extension period took effect on 4 January 2021 and is set to end on 28 March 2021.
Information on how the JobKeeper Scheme now works, including information on the new rates of payment, can be found here.
Homebuilder extended until 31 March 2021
The Homebuilder program has been extended to include a $15,000.00 grant to building contracts signed between 1 January and 31 March 2021. Further information requiring the extension, including program criteria and eligibility requirements, can be found here.
Coronavirus SME Guarantee Scheme Phase 2
The Coronavirus SME Guarantee Scheme Phase 2 enhances support for businesses in recovery by providing access to unsecured working capital loans. Phase 2 commenced on 1 October 2020 and will be made available for loans made by participating lenders until 20 June 2021. More information can be found here.
Strata Schemes Management Emergency Provisions extended until 13 May 2021
Amendments to the Strata Scheme Management Regulations commenced 13 November 2020 which allows for altered arrangements for the voting and convening of strata meetings and will remain in place until 13 May 2021. Information can be found here.
The latest in Insolvency Reforms
The temporary debt relief measures introduced by the Australian Government in response to the COVID-19 pandemic ended on 1 January 2021. Information on the end of the changes and consequential adjustments to bankruptcy thresholds can be found here.
The Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) took effect on 1 January 2021. The reforms coincide with the end of the temporary insolvency protections introduced in response to the COVID-19 pandemic. The new Act comprises of key reforms to restructuring and liquidation specifically designed for small businesses. Transitional arrangements are in place to enable directors to become familiar with the process and are available until 31 March 2021. The reforms were announced as part of the delayed 2020-21 federal budget.
The government has produced a fact sheet on the reforms here. For information on eligibility and process from The Australian Tax Office click here. Our previous information on the reforms can be located here.
Employment and Industrial Relations Reforms
In December last year the Federal Government published a proposed reform package to Australia’s industrial relations framework under the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020. The reform package is expected to be debated in parliament in the coming weeks and is intended to clarify classifications and payments relating to casual employments and to enhance remedies for resolving underpayment claims. The Attorney-General’s press release on the proposed forms is available here.
To coincide with the reform measures the Fair Work Commission commenced a review process on the inclusion of loaded rates and exemption rates clauses under a number of industry awards including the Restaurant Industry Award 2020 and the Hospitality Industry (General) Award 2020. Our friends at the Restaurant and Catering Association (of which we are also a member) provide excellent up-to-date resources on these awards and others here.
Tourism and Consumer Travel Support Program
Also in December last year the Federal Government announced a $128 million scheme designed to provide financial and business support to travel agents impacted by the COVID-19 pandemic. Payments will scale based on turnover of the business. To be eligible you must be a travel agent or service provider with an annual turnover of at least $50,000.00 to a maximum of $20 million for the 2019 calendar year and have received a JobKeeper payment for either fortnight ending in October 2020. More information on eligibility and the application process is available here.
Our friends at the Australian Tourism Export Council (of which we are a member and nominated solicitors for) provide support and advice for travel agents and tour operators. Excellent resources are available at their website including information on their COVID-ready program which can be found here.
Other developments and links of note
Agriculture: The Australian Department of Agriculture has useful advice on impacts of COVID-19 to agribusiness here.
Business in NSW: More information on COVID-19 safety plans for NSW business and employers is available here.
Conveyancing: The Office of the Registrar General has produced useful guidance for how COVID-19 impacts eConveyancing and lodgement of titles, available here.
Federal Budget: An overview of the federal budget is available here.
Health: General information on the COVID-19 NSW health orders is available here.
Individuals and Households: Information on Financial Support for individuals and households can be found here.
Movement and Restrictions. Developments in lifting of restrictions and the generating of economic activity can be found on the relevant Government websites, including 'What you can and can't do under rules' and Home Affairs.
Outside NSW: If you are outside of NSW or intending to conduct business outside of NSW then you should check the Government website for the relevant states for further information, which can be found here.
Restriction Checker: You can check the latest on movement and gathering restrictions at the COVID-19 Restriction Checker here.
Sole Traders: Information on support for sole traders can be found here.
Workpace Safety: Safework Australia has information on workplace risk assessments for work health and safety risks from COVID-19 here.
We will keep you updated from time to time on key legal developments relating to the COVID-19 pandemic, including if any further extensions are made to the reforms and schemes mentioned in this newsletter.
Please contact us if you would like any legal advice relating to impacts on COVID-19 to you personally or your business and we will be pleased to assist.
For more of our COVID-19 legal alerts, updates and publications please click here. Alternatively call us on +61 2 9233 7299.
The beginning of the year is a good time to familiarise oneself with the latest in the various legal reforms and schemes that have resulted from the COVID-19 pandemic. This bulletin will assist you to keep up to date.
COVID-19 leasing regulations extended until 28 March 2021
The NSW Government has extended the Retail and Other Commercial Leases (Covid-19) Regulation 2020 from 31 December 2020 until 28 March 2021.
To recap, the regulations introduce a rent relief mechanism for tenants financially impacted by COVID-19 where the relief is to be proportionate to their downturn. To enable the relief to be applied, the regulations require good faith negotiations be entered into between landlords and tenants. The regulations were introduced on 7 April 2020 and were set to expire on 25 October 2020 and were extended until 31 December 2020. They have now been extended further until 28 March 2021 for retail leases only (importantly, the "prescribed period" for commercial leases still ended at 31 December 2020).
Tenants will have to re-establish their eligibility under the regulations to benefit from any further negotiated rent reduction for the new extension period. Information on the extension can be found on the relevant government website here. We summarise the application of the initial regulations here.
The NSW Government has also produced a FAQ with details on the two extensions to the regulations (from 26 October 2020 to 31 December 2020 and now from 1 January until 28 March 2021) which can be found here. Our update on the extensions can be found here.
JobKeeper extended until 28 March 2021
The JobKeeper Scheme has also been extended. There have now been two separate extension periods which each involve separate applications of the turnover test and rate of JobKeeper payments.
The first extension period took effect from 28 September until 3 January 2021 and the current extension period took effect on 4 January 2021 and is set to end on 28 March 2021.
Information on how the JobKeeper Scheme now works, including information on the new rates of payment, can be found here.
Homebuilder extended until 31 March 2021
The Homebuilder program has been extended to include a $15,000.00 grant to building contracts signed between 1 January and 31 March 2021. Further information requiring the extension, including program criteria and eligibility requirements, can be found here.
Coronavirus SME Guarantee Scheme Phase 2
The Coronavirus SME Guarantee Scheme Phase 2 enhances support for businesses in recovery by providing access to unsecured working capital loans. Phase 2 commenced on 1 October 2020 and will be made available for loans made by participating lenders until 20 June 2021. More information can be found here.
Strata Schemes Management Emergency Provisions extended until 13 May 2021
Amendments to the Strata Scheme Management Regulations commenced 13 November 2020 which allows for altered arrangements for the voting and convening of strata meetings and will remain in place until 13 May 2021. Information can be found here.
The latest in Insolvency Reforms
The temporary debt relief measures introduced by the Australian Government in response to the COVID-19 pandemic ended on 1 January 2021. Information on the end of the changes and consequential adjustments to bankruptcy thresholds can be found here.
The Corporations Amendment (Corporate Insolvency Reforms) Act 2020 (Cth) took effect on 1 January 2021. The reforms coincide with the end of the temporary insolvency protections introduced in response to the COVID-19 pandemic. The new Act comprises of key reforms to restructuring and liquidation specifically designed for small businesses. Transitional arrangements are in place to enable directors to become familiar with the process and are available until 31 March 2021. The reforms were announced as part of the delayed 2020-21 federal budget.
The government has produced a fact sheet on the reforms here. For information on eligibility and process from The Australian Tax Office click here. Our previous information on the reforms can be located here.
Employment and Industrial Relations Reforms
In December last year the Federal Government published a proposed reform package to Australia’s industrial relations framework under the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020. The reform package is expected to be debated in parliament in the coming weeks and is intended to clarify classifications and payments relating to casual employments and to enhance remedies for resolving underpayment claims. The Attorney-General’s press release on the proposed forms is available here.
To coincide with the reform measures the Fair Work Commission commenced a review process on the inclusion of loaded rates and exemption rates clauses under a number of industry awards including the Restaurant Industry Award 2020 and the Hospitality Industry (General) Award 2020. Our friends at the Restaurant and Catering Association (of which we are also a member) provide excellent up-to-date resources on these awards and others here.
Tourism and Consumer Travel Support Program
Also in December last year the Federal Government announced a $128 million scheme designed to provide financial and business support to travel agents impacted by the COVID-19 pandemic. Payments will scale based on turnover of the business. To be eligible you must be a travel agent or service provider with an annual turnover of at least $50,000.00 to a maximum of $20 million for the 2019 calendar year and have received a JobKeeper payment for either fortnight ending in October 2020. More information on eligibility and the application process is available here.
Our friends at the Australian Tourism Export Council (of which we are a member and nominated solicitors for) provide support and advice for travel agents and tour operators. Excellent resources are available at their website including information on their COVID-ready program which can be found here.
Other developments and links of note
Agriculture: The Australian Department of Agriculture has useful advice on impacts of COVID-19 to agribusiness here.
Business in NSW: More information on COVID-19 safety plans for NSW business and employers is available here.
Conveyancing: The Office of the Registrar General has produced useful guidance for how COVID-19 impacts eConveyancing and lodgement of titles, available here.
Federal Budget: An overview of the federal budget is available here.
Health: General information on the COVID-19 NSW health orders is available here.
Individuals and Households: Information on Financial Support for individuals and households can be found here.
Movement and Restrictions. Developments in lifting of restrictions and the generating of economic activity can be found on the relevant Government websites, including 'What you can and can't do under rules' and Home Affairs.
Outside NSW: If you are outside of NSW or intending to conduct business outside of NSW then you should check the Government website for the relevant states for further information, which can be found here.
Restriction Checker: You can check the latest on movement and gathering restrictions at the COVID-19 Restriction Checker here.
Sole Traders: Information on support for sole traders can be found here.
Workpace Safety: Safework Australia has information on workplace risk assessments for work health and safety risks from COVID-19 here.
We will keep you updated from time to time on key legal developments relating to the COVID-19 pandemic, including if any further extensions are made to the reforms and schemes mentioned in this newsletter.
Please contact us if you would like any legal advice relating to impacts on COVID-19 to you personally or your business and we will be pleased to assist.
For more of our COVID-19 legal alerts, updates and publications please click here. Alternatively call us on +61 2 9233 7299.
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Emma Davies
Senior Associate Bradfield & Scott Lawyers Telephone: 9233 7299 Email: edavies@bradscott.com.au |
