Construction & Real Estate

The Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020 (Regulation) came into effect in Queensland on 28 May 2020. The Regulation implements the National Cabinet Mandatory Code of Conduct – SME commercial leasing principles during COVID-19 and applies to lease arrangements between 29 March 2020 to 30 September 2020.

The main purposes of the Regulation is to mitigate the effects of the COVID-19 pandemic on landlords and tenants under affected commercial and retail leases and to establish a process for resolving small business tenancy disputes and affected lease disputes. 

The Regulation is made under s 23 of the COVID-19 Emergency Response Act 2020  and expires on 31 December 2020. However, the Regulation has the potential to regulate landlord and tenant conduct well after businesses have resumed normal operations after lock down conditions are eased.

While the Regulation provides a framework for parties to an affected lease in Queensland as a guide in negotiating lease variations between the parties, there are still some areas of uncertainty as to how some of these provisions will apply in Queensland.

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