The Shopping Centre Council of Australia (SCCA) has welcomed the Queensland State Government's $400m Land Tax Relief package which will support to retail tenants experiencing hardship as a result of COVID-19.
The support package allows eligible landowners to apply for a three month waiver and three months deferral of land tax which must be passed onto tenants.
SCCA executive director Angus Nardi said that the scheme is welcome news to retail tenants.
"We commend the Queensland Government on this package, and it is welcome news for shopping centres and retailers.
"It is a strong and positive step by the Queensland Government which is aligned with the principles set out in the Code of Conduct.
"The Queensland Government’s announcement sends a strong signal that retailers can sit down with their landlords to discuss rent relief and business continuity with confidence.
"This is an excellent and practical example of how Governments, shopping centre owners and retailers can work together to help all parties manage the impacts of the COVID-19 pandemic," he said.
The announcement follows the Federal Government's introduction of a mandatory Code of Conduct to apply to commercial leases.
To be eligible to apply for the Queensland Government's land tax relief:
1. You are a landowner who leases all or part of a property to one or more tenants and all the following apply:
- the ability of one or more tenants to pay their normal rent is affected by the COVID-19 pandemic;
- you will provide rent relief to the affected tenant(s) of an amount at least commensurate with the land tax relief; and
- you will comply with the leasing principles even if the relevant lease is not regulated.
To be eligible for land tax relief, a landowner must also commit to comply with the principles set out below.
If you are a commercial landowner, the principles are as follows:
- You will negotiate in good faith with your tenant to seek a mutually agreeable resolution if their ability to pay is impacted by COVID-19;
- You will not evict your tenant if they are in financial distress and unable to meet their commitments due to the impact of COVID-19;
- You will not increase rent, except where rent is linked to increased turnover;
- You will not penalise a tenant who stops trading or reduces opening hours;
- You will not charge any interest on unpaid or deferred rent; and
- You will not make a claim on a bank guarantee or security deposit for non-payment of rent.