Thursday, 30 April 2020
The South Australian Business Chamber has welcomed the State Government’s $50 million Land Tax relief package today saying it will result in flow-on benefits to businesses doing it tough.
The peak industry body says the relief measures would help keep costs low for both landlords and tenants during the COVID-19 shutdown.
The South Australian Business Chamber Director of Policy and Advocacy, Andrew McKenna, commended the State Government for listening to the concerns of the business community.
“While the majority of the South Australian Business Chamber members are tenants, the South Australian Business Chamber has also been advocating for more financial support for landlords to give effect to the rent reductions required under the national mandatory Commercial Leasing Code, so it is pleasing to see help has arrived,” Mr McKenna said.
“Landlords also have commitments they need to meet during this pandemic and recovery phase and this financial support will help take the pressure off negotiations with their commercial tenants.
“The 25 per cent reduction in Land Tax, or an effective waiver of the fourth quarter of 2019/20, is significant and will assist to reduce costs for tenants whose businesses have been heavily impacted by COVID-19, and at the moment are struggling to pay their bills.
“We know the majority of landlords and tenants are currently negotiating rental agreements in good faith where COVID-19 impacts apply, but this added financial support will make those negotiations easier by ensuring rental and other outgoings reductions are passed on in accordance with the national Code.
“Both landlords and tenants are going to have to share the pain of COVID-19 related revenue impacts but support by the State Government to reduce that pain is certainly welcome.”
