Business SA wants councils to give an immediate 90-day commercial rates waiver to those businesses suffering through COVID-19
Businesses could save an average $2500 if councils waive commercial rate bills, says Business SA. It comes as the Property Council accuses some major tenants of “appalling, predatory behaviour”.
SA Business
Don't miss out on the headlines from SA Business. Followed categories will be added to My News.
Property owners and traders could save an average $2500 in three months if councils waive commercial rate bills says Business SA amid claims major retailers are refusing to pay rent.
The state’s peak business industry lobby is today calling on councils to immediately waive or reduce commercial rates for a full quarter to help potentially tens of thousands of businesses affected by the COVID-19 pandemic.
The industry group says it would deliver an average $2500 saving to businesses in that period, including landlords.
Business SA chief executive Martin Haese said a “consistent call” for rate relief was being heard across all business sectors in SA following a series of web seminars with industry groups which concluded on Wednesday.
“With the Federal Government and State Government doing much of the heavy lifting, it is now time for the local government sector to step up to the plate to help,” he said.
“We encourage every council to put all options on the table to provide commercial rate relief waivers immediately – not deferrals, not rate freezes, short-term waivers.
“Commercial tenants and landlords need support right now … we don’t want to see businesses or landlords racking up crippling level of debt during COVID-19 as that will restrain their ability to recover once we get through the crisis.”
However the CEO of the Local Government Association Matt Pinnegar accused Business SA of “chasing headlines”.
“This is an example of relevance deprivation from Business SA,” Mr Pinnegar said.
“If they want to know what councils are doing to help local businesses then they should pick up the phone and call the LGA, not chase headlines. Many councils are reviewing their hardship policies, and looking at suspending rates payments for businesses and households where needed.
“I implore businesses that are struggling with COVID-19 related issues to contact their council – not Business SA – to see what options are available for rates assistance.”
Mr Haese said for most councils – except for Adelaide City Council – commercial rates were only 20 per cent of rates revenue.
“So we are talking about 25 per cent of that 20 per cent,” he said. “We think what we are asking is very reasonable and something many councils can accommodate and it will be received extremely well and the benefit will flow to tenants and landlord.
“I’d also encourage local government to consider if they lose many small businesses due to COVID-19 … this will negatively impact upon council rate base.”
Business SA wants those who have paid their rates for the April quarter to also be able to seek a refund.
Many councils are already offering COVID-19 rate relief measures, including postponement of rates, as well as reductions in fees and removal of late payment fines.
Business SA’s call comes as the Property Council SA executive director Daniel Gannon said the organisation – which represents major property owners – had been inundated with reports of “appalling tenant behaviour”.
The organisation has issued a call out to its members seeking any case studies of “unruly tenants”.
In the circular with has issued a call to arms to its members seeking any evidence of “unruly tenants”.
“We have been informed of base opportunism from many tenants whose behaviour and expectations have been appalling,” the circular says.
“This is disappointing because most landlords are looking after tenants in distress, they’ve done it before any announcements of government relief and they’ve doing it without fanfare as part and parcel of good commercial and business practice.
“Many large national tenants are demanding rent relief for an indefinite period, refusing to pay, and in some cases even asking for refunds of rent already paid. Given these companies often have a stronger balance sheet than SME landlords, this is predatory behaviour.”