Business rent relief during the coronavirus restrictions
If your business currently rents premises and you’re eligible for the JobKeeper Payment Scheme, you cannot be evicted for not paying your rent during the coronavirus restrictions. Your landlord must also reduce your lease payments proportionally in line with your decrease in turnover.
So, if you aren’t trading at all due the restrictions, you can’t be charged rent or evicted during this time. Or if you are still trading but your turnover has been significantly reduced, your landlord must charge you less rent. Landlords can choose to either waive or defer tenant rent payments until the coronavirus restrictions are eased.
Any deferred rent payments must be equally spread over the remainder of the tenants’ lease term, with the minimum deferral time being at least two years after the coronavirus restrictions are lifted (even for tenants whose leases expire before then).
In addition, any concessions that commercial landlords may get during this time (such as reduced land tax or other charges) should also be proportionally passed on to their commercial tenants.
A mutual obligation principle is a part of the Code of Conduct of this commercial rent relief measure. This means that business tenants must also remain committed to their leases. You can’t just break your lease due to the coronavirus restrictions and remain in business.
How we can help
Ensuring that your bookkeeping is accurate and up to date can help your business to demonstrate your eligibility for rent waivers or deferrals from your commercial landlord.
It can also help you to access the other government support measures on offer for affected businesses during the coronavirus crisis. It’s important to get all the help you can get during this tough time and to make smart business decisions.
At Scorpion Bookkeeping, we can help you with any bookkeeping support services that you may need, no matter what type of business you have. We currently have clients in a diverse range of industries in South Australia, Victoria and New South Wales.
Contact us today to find out how we can help your business!