Publications - COVID-19
The latest on NSW Government COVID relief programs
21 July 2021
Disaster Payments and Small Business relief
On 13 July 2021, the NSW Government announced new measures regarding the Covid-19 NSW Disaster payments. In summary:
Leasing
The NSW Government established the Retail and Other Commercial Leases (Covid-19) Regulation 2021 (NSW) which provides rent relief and dispute resolution mechanisms for commercial tenants and landlords and is similar in effect to the 2020 version of the regulations with some key change. The regulation extends to retail shop leases and parallel legislation applying to commercial leases has been enacted under Schedule 5 of the Conveyancing (General) Regulations 2018 (NSW). Some noteworthy aspects are:
(b) a Covid-19 NSW business grant; or
(c) a Job Save grant.
The NSW Government has also established the Residential Tenancies (COVID-19 Pandemic Emergency Response) Amendment Regulation 2021 which provides a sixty day moratorium on evictions for residential tenants who have lost 25% or more of their income due to COVID-19. Those provisions are currently set to end on 11 September 2021.
The NSW Government has also enacted land tax relief which will extend relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability.
For more of our COVID-19 legal alerts, updates and publications please click here. Alternatively call us on +61 2 9233 7299.
Disaster Payments and Small Business relief
On 13 July 2021, the NSW Government announced new measures regarding the Covid-19 NSW Disaster payments. In summary:
- Commencing Monday 19 July (week four of lockdown) companies with annual turnover of between $75,000.00 and up to $50 million will be able to receive the cash flow benefit as long as they can show a 30 per cent fall in their turnover. The company must maintain their full-time, part-time and long-term casual staffing level as at 13 July 2021 to receive the cash flow boost to ensure the Government’s objective of protecting jobs is met.
- The cash flow benefit will range from $1,500.00 to $10,000.00 dependent on NSW payroll payments level.
- The cash flow benefit will extend to not-for-profits.
- For sole traders the payment will be set at $1,000.00 per week.
- Separate disaster relief payments are available for workers who have lost work as a result of the lockdown. Workers who have lost 20 hours or more will be eligible for a $600.00 weekly payment (up from $500.00). Workers who have lost between 8 – 20 hours of work per week are eligible for a weekly payment of $375.00 (up from $325.00). Access to payments for workers is delivered through MyGov.
- More information (including further eligibility rules) about the relief is available through the Service NSW website. To receive the weekly payments, claims must be submitted for each week commencing from the 4 July currently up until the 30 July. From the 18 July, eligible claimants will be able to elect to automate claims for future weeks.
Leasing
The NSW Government established the Retail and Other Commercial Leases (Covid-19) Regulation 2021 (NSW) which provides rent relief and dispute resolution mechanisms for commercial tenants and landlords and is similar in effect to the 2020 version of the regulations with some key change. The regulation extends to retail shop leases and parallel legislation applying to commercial leases has been enacted under Schedule 5 of the Conveyancing (General) Regulations 2018 (NSW). Some noteworthy aspects are:
- The regulation provides protection for impacted lessees, which are defined as lessees which qualify for one or more of the following grants:
(b) a Covid-19 NSW business grant; or
(c) a Job Save grant.
- These protections include that the lessor must not take a “prescribed action” under the meaning of the lease for reasons relating to failure to pay rent or outgoings or not operating under the lease for the hours prescribed in the lease. “Prescribed Actions” include (but are not limited to) actions relating to eviction and termination of the lessee, exercising a right of re-entry and recovery of the premises and recovery of the whole or part of a security bond.
- Impacted lessees must also demonstrate a turnover for the 2020-2021 financial year of less than $50 million (including internet sales).
- The regulation provides protection for lessees for breaches that occur up to 20 August 2021.
- The legislation expressly does not apply to leases entered into on or after 26 June 2021 (excepting by means of an option to extend or renew the lease) and leases under the Agricultural Tenancies Act 1990 (NSW).
- There are dispute resolution mechanisms which provide that in the event of a dispute mediation must be entered into as arranged by the Registrar of Retail Tenancy Disputes (this applies to both commercial and retail shop leases).
- The regulation does not expressly reference the principles of the Federal Government's Commercial Leasing Code published last year.
The NSW Government has also established the Residential Tenancies (COVID-19 Pandemic Emergency Response) Amendment Regulation 2021 which provides a sixty day moratorium on evictions for residential tenants who have lost 25% or more of their income due to COVID-19. Those provisions are currently set to end on 11 September 2021.
The NSW Government has also enacted land tax relief which will extend relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially distressed tenants, up to 100 per cent of the 2021 land tax year liability.
For more of our COVID-19 legal alerts, updates and publications please click here. Alternatively call us on +61 2 9233 7299.
