More relief needed for commercial property sector

On Wednesday, the Government announced measures which include a $3.1 billion tax loss carry-back scheme, changes to the tax loss continuity rules estimated to result in $60 million annual savings to business and greater flexibility for affected businesses to meet their tax obligations

For commercial property owners, the big announcement was that the timeframes required before landlords can cancel leases and mortgagees can exercise their rights to sale or repossession have been extended.

Justice Minister Andrew Little says many businesses may be finding it difficult or impossible to pay rent if they are no longer able to access their property, and if landlords are not receiving rent, they may not be able to meet their mortgage obligations.

“As a result, the Government will extend the current 10 working day timeframe that commercial landlords may cancel the lease to 30 working days. This will be for both the period the tenant is in arrears before the notice is given, and for the period to remedy the breach.