End of relief for commercial and retail tenancies in the ACT

On 12 May 2020, the ACT Legislative Assembly introduced the Leases (Commercial and Retail) COVID-19 Emergency Response Declaration 2020 to assist commercial and retail tenants suffering financial stress or hardship due to COVID-19. By adopting the National Cabinet Mandatory Code of Conduct, tenants and landlords were provided with a way to navigate the challenges faced by tenants, both throughout Territory-wide lockdown and other COVID-19 measures.

Though the first declaration came to an end on 31 January 2021, a second, being the Leases (Commercial and Retail) COVID-19 Emergency Response Declaration 2021, was introduced on 31 August 2021 as the Territory entered its second lockdown. The second declaration re-introduced:

1. the obligation for a landlord to negotiate in good faith with an affected tenant;
2. a restriction on termination of a lease to an affected tenant, except where the landlord had engaged good faith negotiations; and
3. the National Cabinet Mandatory Code of Conduct.

Despite the increased transmissibility and uncertainty brought about by the Omicron variant, the second declaration was revoked on 13 December 2021 with effect from 1 January 2022. 

The revocation of the second declaration, however, does not affect the protections afforded to commercial and retail tenants under the first and second declarations. The rights, protections, and remedies available under those declarations continue to apply to prescribed breaches of prescribed leases occurring during the respective declaration periods. For further information, please contact the BAL Lawyers Property Team.

For further information, please contact the BAL Lawyers Property Team.