The Queensland government’s unveiling of a $400m land tax package for stressed landlords is expected to trigger further relief for property owners nationally as commercial tenants demand rent holidays.
NSW has indicated that it could follow suit and Victoria is also exploring ways of easing the burden on landlords as they support tenants that have been hit by the coronavirus crisis.
The moves are expected in the wake of the federal cabinet last week announcing a new code for dealing with small commercial tenants that will become mandatory once state laws are passed.
But the code’s intrusive nature has sparked political and property criticism.
Former Queensland premier Campbell Newman, who now chairs property firm Arcana Capital, has lashed the proposed scheme.
“Landlords should look after small tenants and share the pain,” he posted on social media.
MORE: Government reveals new rules for commercial property tenancies
“However, the code of conduct is bad policy, one-sided, poorly thought through and would sit comfortably in Venezuela.”
He called on political leaders to explain why landlords had to waive rent “while banks that hold the debt aren’t waiving interest at all?” and argued the Coalition should not support the scheme.
The code mandates a moratorium on evictions for businesses with turnover of less than $50m that are eligible for JobKeeper as revenue has fallen by more than 30%.
Retail landlords must offer “proportionate” rent reductions in the form of waivers and deferrals as they nurse businesses through to recovery.
The listed property sector was relieved by the federal code of conduct for commercial leasing, which was less draconian than initially feared.
Both commercial and retail tenants will be protected from evictions under measures unveiled by the Palaszczuk government.
Deputy Premier Jackie Trad says the $400m in land tax relief for property owners must be passed on to tenants.
“We’ve heard loud and clear the concerns of people worried about losing their home or business premises through no fault of their own, so we’ve been working hard to put protections in place to stop that happening,” Trad says.
Queensland will be offering a three-month rebate of land tax for 2019-20, followed by a three-month deferral of land tax 2020-21 for property owners who agree to provide rent relief for tenants affected by the coronavirus downturn.
Property Council Queensland executive director Chris Mountford says the land tax relief is an effective way for the government to support businesses through this crisis.
The Palaszczuk government has also announced a package of measures to ensure residential tenants don’t lose their homes as a result of COVID-19 hardship.
This article originally appeared on www.theaustralian.com.au/property.
