ACT Executive Director of the Property Council, Adina Cirson, has welcomed the release today of the second ACT Government’s Economic Survival Package in response to the COVID-19 crisis, and in particular the specific measures outlined to all help commercial landlords to continue to provide urgent relief to their impacted tenants.
“Industry groups have been collectively advocating to the Government on behalf of our members about the urgent need for a second package and today we have been heard,” Ms Cirson said.
Three categories of impacted businesses have been identified and commercial rates waivers tied to rental relief weighted to those categories accordingly on a proportionate pain share arrangement of up to 50% is an approach strongly supported by the Property Council and will greatly assist landlords to continue to support their tenants.
“We also welcome the announcement that the Government will appoint a Commercial Tenancy Mediator (Business Commissioner) to assist commercial landlords and tenants to engage and negotiate mutually agreeable outcomes,” Ms Cirson said.
In addition, businesses in the construction industry will be able to apply to defer their payroll tax liability for the six months from April to September 2020 to provide cashflow assistance to help them retain workers. No interest will be charged on deferred amounts until 1 September 2020.
“This is a comprehensive package with reach into all parts of our impacted community including the ACT Property Sector in a rapidly changing environment. It is an acknowledgement that more assistance is now needed by our members to help keep small businesses viable, their staff employed, leases intact and ready to reopen once we are through this.
“Our members are all desperately trying to ensure the continuity of their own businesses, retain their own staff and doing their bit to work with their suppliers, clients and tenants to offer support to them where possible, ease financial burden on smaller business owners and are acting where possible in the best interests of the broader community.
“They have already answered the call to step up to assist their tenants right across the city and are in many cases providing substantial rent relief to their commercial tenants hardest hit by COVID-19.
Many of the first response stimulus measures provided addressed the immediate impacts of COVID-19 on the Canberra and Region business community, to protect the Territory economy and support local workers. These included measures targeted at commercial building owners through rates relief, utility rebates, payroll tax exemptions and deferrals and waivers of many fees and charges which assist them to provide all support possible to their tenants.
“We appreciate that in the short time since then, the impacts continue to ripple through our community, and that the need for assistance continues to change. Through the release of this this second package so soon after the first demonstrates that the Government is being responsive to the economic needs of our community at this time.
“And whilst we appreciate the detail on implementation of this package still needs to be worked through – we welcome the engagement and commitment by the Government to incorporate our feedback on that – so relief is rightfully targeted where it is needed most,” Ms Cirson concluded.
2 April 2020 Media contact: Adina Cirson | M 0429 579 972