Saturday 14 August 2021
The Australian Retailers Association (ARA) has applauded the long advocated return of the Leasing Code of Conduct in NSW, which provides protections and financial support for small commercial tenants suffering through the prolonged lockdown in NSW.
ARA CEO Paul Zahra said the Leasing Code successfully supported small and medium size businesses through the first wave of the pandemic and its return is a measure that the ARA has called for many months as retailers face mounting costs with little to no income.
"Rents are the biggest issue for retailers suffering the current lockdown in NSW, and many are scrambling trying to keep their businesses alive with mounting costs and little or no money coming through the door," Mr Zahra said.
"We have been in intense discussions with the NSW Government over this matter - particularly in recent weeks as lockdowns show no sign of easing. The Government not only listened - they have improved the scheme by increasing relief to landlords as well as tenants. This is decisive leadership that will save the lives of many small businesses.
"Businesses in NSW are feeling the pain now more than at any stage of the pandemic, with Australia's economic capital facing its longest ever lockdown. The ARA has been calling for the return of tried and tested support schemes we know worked well during the initial phase of the pandemic - one of them being the Leasing Code of Conduct.
"The ability of some retailers to pay their rents during this difficult period has been causing much stress and anxiety, so the announcement from the NSW Government has come as a welcome relief.
"The Leasing Code provides a framework for negotiations between landlords and tenants and mandates rent relief in proportion to a business' decline in turnover. Despite the code being capped at $50 million, this framework is proven to assist not only smaller tenants but also provides a guide for negotiations in larger tenancies.
"We applaud the NSW Government for their leadership in reinstating the Leasing Code. Whilst it's an incredibly difficult time for small business owners trying to make ends meet, this at least provides some relief and hope for the future."
