How commercial landlords and tenants will benefit from the ACT government’s stimulus package

Landlords will be eligible to apply for a waiver or rebate on their commercial rates, tied to the actual rental relief they pass onto their tenants.

Those suffering the most financial hardship would get the highest level of support from both their landlord and the ACT government through matched relief.  Tenants with little or no impact on their financial situation would be required to continue to meet their rental obligations.

The ACT government is also offering rental relief to its own commercial and community tenants impacted by the virus.

A commercial tenancy mediator will also be appointed to assist commercial landlords and tenants to negotiate mutually agreeable outcomes.

Construction companies and allied services will also benefit from an interest-free, six-month deferment of payroll tax between April and September.

The government will also defer issuing commercial rate notices for final quarter of the 2019-20 financial year by four weeks to provide immediate cash-flow assistance.

ACT executive director of the Property Council Adina Cirson welcomed the announcement.

“Industry groups have been collectively advocating the urgent need for a second package and today we have been heard,” Ms Cirson said.

“This has reached into all parts of our impacted community in a rapidly changing environment.

“Our members are all desperately trying to ensure the continuity of their own businesses, retain their own staff and work with suppliers, clients and tenants in the best interests of the broader community,” she said.

Ms Cirson said the release of the second package so soon after the first demonstrated that the government was responsive to the economic needs of the community.

“We appreciate the detail on implementation of this package still needs to be worked through and we welcome the commitment by the government to incorporate our feedback, so relief is targeted where it is needed most,” she said.

Managing director of Burgess Rawson Canberra Guy Randell, also the REIACT’s head of commercial, agreed with the ACT government package and its focus on pain points within the commercial property sector and construction industry.

“The government understands that business needs to survive this crisis in a shape that enables them to begin the repair and recovery phases,” he said.

“The federal government’s JobKeeper scheme will help us keep our teams as intact as possible while the ACT’s second package will provide financial relief to commercial landlords, tenants and the construction industry.”

Mr Randell said the ongoing viability of the construction sector was extremely important to the ACT economy and that had been acknowledged with the payroll relief.

ACT Chief Minister Andrew Barr said the government could not offer this support alone and costs needed to be shared between government, landlords, tenants and financial institutions.

“We have structured our commercial economic survival measures to ensure we can provide the highest-level support for those that need it most,” he said.