Here is a further update on the government’s response to the COVID-19 crisis, particularly regarding the rent relief now available to commercial tenants.
In summary this announcement is applicable:
- For small to medium-sized businesses with an annual turnover of up to $50 million
- To businesses registered and eligible for the Job Keeper program, refer to our previous communication for more details on this
- From 3 April 2020 for the period the JobKeeper program is active, currently slated as 30 September 2020
Furthermore:
- Rent reductions are to be in line with the tenant’s % decline in turnover to ensure that the burden is shared between landlords and tenants.
- At least 50% of these reductions must be provided as a rental waiver, and the balance is to be deferred and amortised over no more than 24 months
We recommend all clients (where applicable) contact their real estate agent to commence discussions regarding this.
Full details can be found here in the press release from the Prime Minister’s office.
The team at Keeping Company is here for you and are still operating at full capacity, so please contact your Account Manager if you require any assistance or clarification regarding this new information or anything else you have queries about.
Keeping Company is a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together to provide a complete solution for the Australian Small to Medium Business owner.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. We are here to help, contact us today.
For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.