Small businesses who are still doing it tough across the State will continue to benefit from rent relief until 13 January 2022, ensuring ongoing support for small businesses over the Christmas and New Year’s Period.
Treasurer Matt Kean said as the economic recovery continues, many small businesses are still not back at their pre-COVID turnover and rent is still one of their biggest fixed costs.
“Small business is the engine room of our economy and as we recover from the pandemic we need to make sure we leave no one behind and support impacted businesses as they continue to recover,” Mr Kean said.
“Continuing rent relief measures for impacted small businesses will provide a necessary buffer to allow businesses time to get back on their feet and begin to thrive again.”
The Retail and Other Commercial Leases (COVID-19) Regulation 2021 rent relief provisions will continue for eligible businesses with a turnover of less than $5 million, a more targeted level of support from the previous turnover threshold of $50 million.
Minister for Finance and Small Business Damien Tudehope said landlords will still be required to negotiate rent relief with eligible commercial and retail tenants that are experiencing a turnover decline of 30 per cent or more.
“Lockdown may be over but there are still small businesses, particularly in our CBDs, that are facing a slower recovery and are continuing to do it tough,” Mr Tudehope said.
“As the State continues to transition out of lockdown, 97 per cent of NSW businesses will retain access to COVID-19 rent relief provisions if they continue to experience a significant decline in turnover.”
Small commercial and retail tenants that would have continued to meet the eligibility criteria for JobSaver or the Micro-business Grant, after ending on 30 November, will remain eligible for rent relief negotiations with their landlords.
Under the Regulation, landlords are required to negotiate rent relief having regard to National Cabinet’s Code of Conduct. As a starting point, rent relief should be proportionate with eligible tenant’s decline in turnover, with at least 50 per cent in the form a waiver, and the balance a deferral.
Landlords can access the Commercial Landlord Hardship Fund, which currently provides small commercial or retail landlords with a monthly grant up to the value of any rental relief provided, to a maximum of $3,000 per month per property.
Alternatively, land tax relief is available for eligible commercial landowners who have reduced their tenants’ rent due to COVID-19, between 1 July 2021 and 31 December 2021. The reduction in land tax payable is the lesser of:
- the amount of rent reduction provided to an eligible tenant for any period between 1 July 2021 and 31 December 2021, or
- 100 per cent of the land tax attributable to the parcel of land leased to that tenant.