Small and medium businesses will now be granted rental waivers and deferrals under a mandatory Code of Conduct:


  • Landlords will be required to reduce rent proportionate to the trading reduction in the tenant’s business caused by COVID-19 via a combination of waivers of rent and deferrals of rents.
  • Landlords must offer waivers of rent no less than 50 per cent, while the balance must be in the form of a rental deferral.
  • The payment of the rental deferrals must be amortised over the balance of the lease term and for a period of no less than 24 months.
  • Landlords must not terminate the lease or draw on a tenant’s security. Likewise, tenants must honour the lease

The code will cover commercial tenancies, including retail, office and industrial, and will be eligible for SME tenants with an annual turnover of up to $50 million.

You must be a SME tenant that qualifies for the government’s JobKeeper program.


The code will come into effect in all states and territories from 3 April and will run for the period the JobKeeper program remains operational.

Arrangements would be overseen through a binding mediation process run by the states and territories.

I like this and similar to the Job keeper package it helps keep the parties connected.


  • The lease continues,
  • The landlord and tenant relationship continues,
  • The business has some relief and hopefully this is enough to remain in the property,

Having this guideline takes away the unworkable situation of the tenant having to request relief from the landlord, it avoids unreasonable or unsympathetic outcomes.

This is not a win for all but its a good step to help many.

Please call if you would like to discuss.
Adrian and VJC team



General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC WM accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC WM for this purpose.