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Property update: Continued uncertainty for commercial tenancies in COVID-19 crisis

Apr 24, 2020

In our Property update published on 8 April 2020, we gave details of the National Code of Conduct for Commercial Tenancies. We pointed out that the Code was not yet law but was expected to become part of Victorian law when passed by Victorian Parliament enabling legislation.

Victorian legislation passed

Yesterday, the Victorian Parliament passed the Covid-19 Omnibus (Emergency Measures) Bill 2020.

Unfortunately, the Bill does not incorporate the Code into Victorian law. Nor does the Bill answer the very many questions that arise out of the Code.

In simple terms, the Bill gives the Minister for Small Business extensive powers to make regulations relating to commercial tenancies, including the power to incorporate the Code into the law of Victoria.

The real substance relating to the incorporation of the Code into Victorian law and further clarity in respect of questions arising out of the Code will be contained in regulations.

The regulations

As at the date of this communication, the Victorian Government has not yet released any regulations to be made under the Bill regarding commercial tenancies.

While it is not known when the Minister for Small Business will make those regulations, it is hoped that they will be made in the very near future.

The Bill is currently with the Governor for Royal Assent.

The KCL Law Property team will issue an update when the regulations are made or if the Government issues any new information that may affect commercial tenancies.

More information

If you require advice or assistance on how this may impact you, please contact Morgan Scholz, Head of Property, on (03) 8600 8890, Mark Yaskewych, Principal Lawyer, on (03) 8600 8830 or Geoff Kliger, Special Counsel, on (03) 8600 8878.

Author

This Property update was co-authored by Morgan Scholz, Head of Property, and Geoff Kliger, Senior Special Counsel. 

Note: This update is a guide only and is not intended to constitute legal advice.