We refer to our previous articles regarding rent relief.
The Commercial Tenancy Relief Scheme Regulations 2022 (the “New Regulations”) were passed on 1 February 2022 (which are backdated to be effective from 16 January 2022).
In summary, the New Regulations are largely similar to the previous regulations. The main changes brought about by the New Regulations are as follows.
An Eligible Lease is a lease that is in effect on 16 January 2022.
An Eligible Tenant must:
• Have carried on business as at 16 January 2022
• Be an SME entity with turnover of less than $10m (previously $50m under the previous regulations)
Decline in Turnover Test
To satisfy the Decline in Turnover Test, the turnover must be 30% less in January 2022 compared to January 2020.
A separate test is applicable for other circumstances. If a tenant commenced trading on or after 1 January 2020, the comparison period for turnover is calculated from the commencement of trading to 31 January 2022 divided by the number of months.
Eligible Tenants are entitled to rent relief provided by the New Regulations from 16 January 2022 to 15 March 2022.
Please refer to our previous article dated 31 August 2021 for further details in the rent relief section.
The landlord must not increase rent under an Eligible Lease for the period of 16 January 2022 to 15 March 2022, unless otherwise agreed.
If you have any queries regarding your lease, Scott Legal can assist landlords and tenants with guidance, negotiation and drafting agreements for rent relief.
This article contains comments of a general nature and is not intended to be relied upon. No responsibility will be accepted by the author for any loss arising from reliance on this article. Legal advice should be sought in respect to your specific circumstances.
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