The Delta variant continues to disrupt the country, with Southeast Queensland the latest region in a race to contain the virus.
This fast-moving environment continues to require fleet-footed engagement with governments as they grapple with these significant health and economic challenges.
Pleasingly, the Queensland Government has allowed the construction sector to continue to operate during its SEQ lockdown. And in a briefing with business leaders on Monday, Treasurer Cameron Dick specifically thanked the Property Council for the work the industry was doing to engage with and support affected tenants.
Saturday was an important milestone in NSW, where the Government has allowed construction to recommence under refreshed safety guidelines following close dialogue with the Property Council and the sector. Deputy Premier John Barilaro told members last week the decision reflects confidence that the industry can continue to manage COVID risks effectively.
In other welcome news, the National Cabinet has agreed in-principle to an updated National Plan to transition Australia’s COVID-19 response. This revised plan sets the vaccination targets which will enable fewer lockdowns and less disruptions. If we can achieve a vaccination rate of 80% of the adult population, we can return to more of our pre-COVID normality. Let the race to 80% begin!
But the big government calls of the past week have not all been good.
With no consultation with the industry, the Victorian Government last week announced a reinstatement of mandated one-size-fits-all rental waivers through a commercial code of conduct. Bizarrely, it announced this decision on the very day Melbourne emerged from lockdown.
While billed as a government ‘tenant relief fund’, the code will require commercial property owners to provide a formulaic mix of rent waivers and deferrals to tenants whose turnover has dropped by more than 30 per cent. This is not linked to lockdown periods and will be in place until January.
As tomorrow’s release of the Property Council’s Office Market Report will show, Melbourne has suffered more than any other Australian city during the pandemic and the impacts are real. We need governments focused on recovery and the measures needed to attract investment and bring Australia’s CBDs back to life. This measure fails that test.