The new national code of conduct, introduced by the National Cabinet on 7 April, discusses 'good faith leasing principles' for negotiations between commercial landlords and tenants. It applies to all tenancies with an annual turnover of up to $50 million that have suffered financial stress or hardship as a result of the COVID-19 pandemic.

While the principles are the same nationally, each state and territory has been tasked with legislating the code of conduct.
MinterEllison partner, Jakob Paartalu, spoke with the Property Council of Australia about what needs to be considered.

While the code represents an unprecedented federal intervention in commercial leases, each state and territory is responsible for practical implementation. Only New South Wales and Victoria have so far passed specific regulations to deal with the leasing principles associated with commercial tenancies and leases, he explained.

'Landlords, both big and small, are grappling with the differences in each jurisdiction and managing their legal obligations, brand, reputation and most importantly, their relationships with their tenants. They want to do the right thing.'