Government to introduce mandatory commercial tenancy code of conduct

PHOTO: Prime Minister Scott Morrison

Prime Minister Scott Morrison has today announced a mandatory “give and take” tenancy code will be introduced to help struggling businesses get through the Covid-19 crisis.

Following a tentative draft code that was reached by industry bodies in retail, pharmacy and shopping centres, the National Cabinet has been working on an enforceable code that is close to being finalised.

Companies wishing to apply for the code to come into force will need to meet the similar conditions as those applying for the JobKeeper package, with a prerequisite that they have experienced at least a 30 per cent drop in revenue. The tenant will also need an annual turnover of less than $50 million.

“If you’re in that situation and you’re a tenant, we’ll be working on a mandatory code of practice to ensure the landlord and the tenant can get through this period, and on the other side be able to go back to business as usual,” Morrison said.

“What is important as part of this code is that both parties negotiate in good faith,” he said.