BATHURST Regional Council's commercial and residential tenants will be given some support to stay in their premises during COVID-19, with council having no choice but to weather the loss of income.
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The state and federal governments have implemented policy positions regarding the charging of rents and leases for commercial and residential properties.
Council detailed the impact of this in its last mayoral minute, considered at the ordinary meeting on May 20.
Council has 43 commercial leases and 11 residential, which combined have an annual rent charge of $1,243, 656.
The Australian Government's National Cabinet Mandatory Code of Conduct - SME Commercial Leasing Principles During COVID-19 sets out good faith leasing principles that are to be applied to commercial tenancies between landlords and tenants.
It applies to all tenancies suffering financial stress or hardship from the pandemic, as defined by their eligibility for the JobKeeper program. with an annual turnover of up to $50 million.
As a result, landlords are not allowed to terminate leases due to non-payment of rent during the COVID-19 pandemic or a reasonable recovery period.
Among a list of things is a requirement to offer tenants reductions in rent payable in the form of deferrals or waivers of up to 100 per cent of the amount normally payable.
Bathurst council has agreed to defer 50 per cent of the rental payments for commercial tenants still trading, and 100 per cent for those that have ceased trading, commencing from when they became eligible.
Council will also apply a freeze on rent increases for the duration of the pandemic, as defined by the Federal Government's code.
The NSW Government has introduced new measures through the Residential Tenancies Amendment (COVID-19) Regulation 2020 that council must comply with.
For residential tenants who are financially disadvantaged by the pandemic, upon application, council will defer a percentage of the rental payments for a period of six months or until the pandemic is over, whichever comes first.
The percentage deferred will be equivalent to the percentage reduction in household income of the tenant/s.
Both the state and federal governments have announced measures to help landlords manage the financial impact of providing the relief for tenants, however, as local government is exempt from land tax, council is unable to access any of the off-setting relief proposed.
The potential impact on council's rental portfolio for residential and commercial tenancies to June 30, 2020 is $182,860.
Council has also devised other economic stimulus measures, including a range of fee waivers, which will help businesses and community groups.
