A decision by the NSW Government to extend the Retail and Other Commercial Leases (COVID-19) Regulation for eligible commercial tenants until the end of the year has been welcomed by the Illawarra Business Chamber.
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The protections in the regulation were set to expire on Sunday, but now will continue until December 31 to give greater businesses certainty in the coming months.
Illawarra Business Chamber executive director Adam Zarth said the government's decision to extend the commercial leasing protections offered at the start of the pandemic was welcome acknowledgement that there are still many small businesses doing it tough in the Illawarra and across NSW.
"For many this will provide certainty to get them through to the Christmas period where we hope to see a bumper year as people support their local retailers," Mr Zarth said.
"However it is important to recognise that these protections rely on goodwill negotiations between landlord and tenant and require tenants to re-establish their eligibility which will involve demonstrating ongoing COVID-related hardship."
NSW finance and small business minister Damien Tudehope said the extension of the regulation will mean businesses who remain in financial distress have support to keep their doors open and lights on.
"For many small businesses still doing it tough because of the global health pandemic, this continued support will help ease some of the burden and alleviate some of the pressure," Mr Tudehope said.
"Tenants will be required to re-establish their eligibility under the extension to the Regulation if they wish to request further rent relief. Landlords and eligible tenants will also be required to start rent relief negotiations within 14 days of receiving a request, or another timeframe they both agree on.
"By extending this support we are balancing the needs of small business and landlords, ensuring the best outcome for both as we enter Christmas trade.
"Landlords are also able to access relief of up to 25 per cent of their land tax liability where they provide rent relief to tenants in financial distress from October to December.
"We have also launched a range of measures to reignite our economy and recently hosted the Summer Summit to ensure cafes, bars, restaurants and shops in Sydney can have a bumper festive season to help keep people in jobs and businesses in business."
Other states are also extending measures to continue the operation of the National Code of Conduct.
Eligible landlords that reduce the rent of eligible commercial and residential tenants between October and December can apply for a land tax concession on relevant properties.
This new concession is in addition to the concession provided to landlords that reduced rent between April and September.
The concession will be applied to any unpaid 2020 land tax liability, and refunds will be issued for payments already made this year.
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