COVID-19: How is the Northern Territory Government helping commercial property tenants and landlords?

Northern Territory commercial property tenants and landlords have been impacted dramatically by the coronavirus, with businesses hit hard through lockdowns and a subsequent loss of trade.

So what support is available for Northern Territory tenants and landlords who find themselves caught up in the coronavirus downturn?

In addition to the Federal Government’s stimulus package, which includes the JobKeeper and JobSeeker payments and new mandatory code for commercial property tenancies, the Northern Territory Government has confirmed $180 million in measures to assist local businesses and property owners in weathering the current challenges.

Among the measures put in place are:

LANDLORDS REQUIRED TO ASSIST COMMERCIAL TENANTS

The Northern Territory Government has called on commercial property landlords to assist their tenants with rent relief throughout COVID-19.

In line with the Federal Government’s new code of conduct for commercial tenancies, landlords are expected to provide rental relief to tenants who are facing significant financial hardship.

Landlords who do provide relief to tenants will themselves be eligible for payroll tax and utilities bill relief.

PROPERTY ACTIVATION FEE WAIVER

The government is waiving the property activation fee for commercial property landlords whose property becomes vacant during COVID-19.

However, this assistance won’t be available to landlords who haven’t first attempted to negotiate an arrangement in good faith with their tenants to keep the tenant in the property.

NT PAYROLL TAX ASSISTANCE

Central to the relief in place for commercial property tenants, payroll tax for small and medium-sized Northern Territory businesses has been waived for the six months from March to August.

The waiver will apply to businesses with a total payroll of less than $7.5 million and where turnover has dropped by at least 30%.

For larger businesses above the $7.5 million threshold and whose turnover has fallen by 50% or more, payroll tax will be deferred for six months, but is still payable.

UTILITIES BILLS HALVED

The state government has agreed to halve electricity, water and sewage bills for commercial properties for the next six months.

Again, the assistance applies to those affected dramatically by the coronavirus downturn and can be applied for from May 1.

SMALL BUSINESS SURVIVAL FUND

The government has set aside $50 million to help businesses in the most heavily impacted industries, through a pair of payments to help keep them afloat.

Targeted specifically at supporting the retail, hospitality, tourism and entertainment industries, eligible businesses can apply for two payments.

The first offers an immediate survival payment of between $2000 and $50,000 to help combat the business’ immediate financial pressures.

The second payment is a ‘rapid adaption payment’ of between $1000 and $5000 to assist businesses in adapting to operating in the new business climate.