NSW commercial tenants have been given a reprieve from the state government with the Retail and Other Commercial Leases (COVID-19) Regulation to be extended until 31 December 2020.

Landlords will also be able to receive up to 25 per cent land tax concession where they provide rent relief to commercial and residential tenants in financial distress from October to December.

Minister for Finance and Small Business Damien Tudehope said the measures were designed to strike the right balance to support tenants and landlords in commercial agreements.

At a glance: 

• The NSW Government has announced the Retail and Other Commercial Leases (COVID-19) Regulation will be extended until 31 December 2020.
• Landlords will also be able to receive up to 25 per cent land tax concession where they provide rent relief to commercial and residential tenants in financial distress from October to December.
• It comes as new data from the Shopping Centre Council of Australia indicates more than 10,000 small to medium-sized enterprise (SME) retailers were made offers or reached agreements to obtain rent relief up to the end-of-July.

“The Government earlier this year acted quickly to implement the National Cabinet’s Code of Conduct for commercial tenancies to provide support to small and medium-size businesses, but a lot of businesses are still doing it tough, which is why we are extending this support,” he said.

“For many small businesses rent is one of the biggest fixed costs, so easing this burden will help keep businesses in business and keep people in jobs.”

It comes as new data from the Shopping Centre Council of Australia indicates more than 10,000 small to medium-sized enterprise (SME) retailers were made offers or reached agreements to obtain rent relief up to the end-of-July. 

Of those receiving assistance, food and catering service providers, including restaurants, cafés and takeaway food services made up 29 per cent; retail services including hairdressers, beauty therapists and shoe repairs made up 19 per cent; and clothing, footwear and accessories made up 13 per cent. 

According to the research, persisting government restrictions were cited as the main reason for seeking rental assistance, with more than two-thirds (64 per cent) of the total agreements relating to retailers based in New South Wales and Victoria, and Victoria the most over-represented jurisdiction as a proportion of retailers obtaining assistance. 

Click here to find out more about regulation and the land tax relief available for eligible landlords.

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