COVID-19 Disease Emergency (Commercial Leases) Regulations 2020 (TAS)

The Tasmanian Government issued the COVID-19 Disease Emergency (Commercial Leases) Regulations 2020, which were published in the Gazette on 24 July 2020. These regulations were created under the COVID-19 Disease Emergency (Commercial Leases) Act 2020 and came into effect on the same day. The regulations provide specific guidelines to protect businesses and individuals from the financial impacts of the COVID-19 pandemic, particularly in relation to commercial leases. The regulations cover various aspects, including the definition of turnover for rent calculation purposes, the frequency of rent renegotiations, the reduction of statutory charges and insurance premiums, and the exclusion of certain disputes from mediation under the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998.

The court was required to interpret the provisions of the COVID-19 Disease Emergency (Commercial Leases) Regulations 2020 and determine their application in specific circumstances. The key issues involved the definition of turnover for calculating rent, the circumstances under which rent could be renegotiated, the reduction of fixed payments for statutory charges and insurance premiums, and the exclusion of certain disputes from mediation under the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998. The court had to ensure that the regulations were applied in a manner that provided relief to commercial lessees affected by the COVID-19 pandemic, while also considering the rights and obligations of lessors.

The court examined the language and intent of the regulations, finding that the definition of turnover was intended to include gross takings, receipts, income, and similar concepts. However, it excluded specific items such as losses from resale of trade-ins, deposits for lay-bys or credit sales, refunds, service charges, finance charges, interest charges, merchandise exchanges, merchandise returns, sales of fixtures and fittings, discounts, uncollected credit accounts, GST, delivery charges, and revenue from online transactions not directly related to the leased premises. The court also found that rent renegotiations could not occur within three months of the last renegotiation unless the parties agreed otherwise in writing. Additionally, fixed payments for statutory charges and insurance premiums were to be reduced proportionally if the charges or premiums themselves were reduced, unless the lessee agreed in writing to an exception. Finally, certain disputes related to protected leases were excluded from mediation under the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998.

The court's interpretation of the COVID-19 Disease Emergency (Commercial Leases) Regulations 2020 provided clarity on the application of these regulations in the context of commercial leases during the pandemic. The court's decision ensured that the provisions were applied in a way that balanced the needs of commercial lessees with the rights of lessors, providing a framework for managing rent and other lease-related issues during a time of economic uncertainty. The final orders of the court would reflect the specific findings and interpretations made in the case.