Pubs across NSW will benefit from the latest round of virus shutdown support measures, bringing relief in commercial tenancies and licensing fees.
NSW is the first state to put into practice measures outlined by the Federal Government’s mandatory code of conduct for commercial tenancies for the period of the pandemic, released earlier this month and immediately the subject of considerable speculation by tenants and landlords around the country.
On Monday NSW treasurer Dominic Perrottet delivered the state’s policy, announcing that landlords will be offered concessions of up to 25 per cent of their 2020 land tax bill – providing they agree to rent relief for their small business tenants. Freeholders yet to pay land tax for the year can get a deferral of up to three months, also on the proviso of providing rent relief.
These tax concessions are cited as a $220 million stimulus for landlords, making up half of the $440 million pledged. The other $220 million is in support of residential landlords, who must also pass on rent relief.
“This provides a way forward for tenants and landlords so they can reach an agreement during this difficult period, and includes an incentive in the form of a land tax reduction,” said Perrottet in a statement released on Monday.
The Federal regulation requires landlords to grant tenants temporary waivers or deferrals on rent – if the tenant business is eligible for the JobKeeper wage subsidy scheme, which applies to the vast majority of pub leaseholders. Prime Minister Scott Morrison has shown preference to individual landlords and tenants negotiating their own solutions in their individual circumstance. The code aims to address the power imbalance typically found between freeholders and small business.
While tenant businesses not eligible for JobKeeper will not be covered by the Federal mandate and state incentives, it remains to be specified if the eligible tenant must be operating and claiming the JobKeeper payments to be protected.
Meanwhile, NSW authorities have also come to the aid of licensed venues by waiving the annual liquor licence base fee and trading hours risk loading fee for most licensees, for the 2020-21 period.
Importantly, the compliance risk loadings will not be waived, but they will be deferred and be itemised as part of annual liquor licence fees for 2021-22.
The AHA NSW recently requested the fee waiver to the treasurer and welcomes the help for the state’s pubs.
“We certainly appreciate the role played by our Minister, Victor Dominello, in securing this for the NSW hotel industry,” notes AHA NSW CEO John Whelan.
“Hotels are still burdened by many fixed costs during this closure period, including fixed energy charges and insurance. The waiving of fees rather than a deferral is particularly welcome as it means these fees won’t join a long list of debt already accumulated.”
While the fee relief will benefit most licensees in NSW, there are some exceptions, including bottleshop and home delivery businesses (packaged liquor licences) with four or more outlets owned by the same licensee or business.
Liquor & Gaming NSW reminds licensees experiencing financial hardship but not eligible for the automatic waiver they can still apply for a fee waiver through the regular channels.
Licences eligible for the automatic fee waiver include:
- Hotel
- Small bar
- General bar
- On-premise
- Club
- Microbreweries and small distilleries
- Producer/wholesaler
- Limited licences
- Packaged liquor – providing no more than three outlets owned by the same licensee or business