The Property Council of Australia has called on governments across the country to provide "meaningful relief" to commercial tenants who may be struggling to pay their rent as a result of the coronavirus pandemic by offering owners a temporary reprieve from land tax.

Chief Executive Ken Morrison said while the Council welcomed the Prime Minister's recent announcement that state and territory governments would work on model laws for commercial and residential tenancies experiencing hardship, tax relief would be one of the most practical ways they could assist the commercial sector.

“Australian governments collected $10.4 billion in land tax last year, the overwhelming majority of which is paid by commercial property owners," he said.

At a glance:

• The Property Council of Australia believes a temporary reprieve from land tax may help commercial owners and tenants navigate the impact of coronavirus.
• The Council said its commercial property owners were already in discussions with tenants about how to best manage the current situation.
• Chief Executive Ken Morrison said the arrangements made should reflect the "strong interest" of the property owners and managers have in keeping their tenants in place.

“State and territory governments should provide land tax relief – legislated so that it must be passed through to tenants – then that can help support struggling tenants.

“Land tax is typically the highest outgoing that tenants pay, so temporary relief would help.

Prime Minister Scott Morrison has announced stimulus measures to help businesses navigate the impacts of coronavirus. Source: Depositphotos

“Commercial property owners stand ready to do their part, and governments can also help support tenants through this period."

Mr Morrison added the Council's commercial property owners and managers were "already in discussions" with affected tenants about helping them continue to operate through this unprecedented period.

“We’re all in this together and have a shared interest in seeing businesses make it through this very difficult time,” he said.

“The nature of those arrangements (between owners and tenants) will obviously vary from property to property and tenant to tenant.

“However, they all start from the strong interest that property owners and managers have in keeping their tenants in place and supporting the viability and success of their businesses.

“Tenants also should not hesitate to raise their concerns with their property manager to discuss a way forward."

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