COVID-19 Response Act receives royal assent

The COVID-19 Response (Further Management Measures) Legislation Act 2020 (COVID-19 Response Act) was introduced to parliament on 5 May 2020 and received royal assent (the final stage in becoming an Act of parliament) on 15 May 2020. The COVID-19 Response Act is one of several legislative changes made by parliament in response to COVID-19.

The COVID-19 Response Act makes changes to more than 40 Acts. Among other things, the COVID-19 Response Act:

• Commercial property: makes changes to commercial property law to support businesses and commercial landlords to manage situations where, because of the impact of the response to COVID-19, businesses are unable to pay their rent and landlords are unable to meet their mortgage payments. The amendments extend:

  • the notice period and the period tenants must be in arrears before landlords can cancel commercial leases; and

  • the notice period before mortgagees can exercise certain rights under the mortgage, such as the right to sell or repossess the property;

• Employment: makes changes to parental leave in order to allow workers entitled to parental leave to temporarily return to work to assist in the response to COVID-19 without being disadvantaged by losing entitlements to leave and payments;

• Insolvency and corporate: makes changes to insolvency and corporate law to increase the prospects of businesses surviving the COVID-19 response;

• Cartel conduct: makes changes to the Commerce Act 1986 to allow the Commerce Commission to authorise conduct that may technically breach the restrictions on cartel conduct, but would be of such a benefit to the public that it should be permitted;

• New regulatory requirements: defers new regulatory requirements that would increase burdens or where the Government or businesses may no longer be ready to start by the planned date;

• Statutory deadlines: defers statutory deadlines and other minor exemptions where compliance is not possible or unreasonably burdensome;

• Fast-tracking: enables fast-tracking of legislative powers to mitigate impracticability issues; and

• Compliance: mitigates problems with legislative compliance due to physical presence requirements and other technological reasons. This includes a temporary exception which allows security agreements containing powers of attorney to be signed electronically.

If you have any questions or would like advice in respect of any legal matter you are facing (whether related to COVID-19 or not), please contact your usual point of contact at Kemps Weir or contact us here.

Disclaimer: This publication should not be construed or acted on as legal advice. It is brief and general in nature. Specific advice should be sought.