Pharmacy Daily | Rent relief needs long-term solution

ACTION needs to be taken on a national level to address the commercial rent imbalance between landlords and tenants, Pharmacy Guild of Australia Western Australia Branch Director, Matthew Tweedie, believes.

While welcoming the Western Australian Government's decision to extend the emergency period under the Commercial Tenancies (COVID-19 Response) Act 2020 until at least 28 Mar 2021, Tweedie said long-term reform was essential to support small and medium-sized business owners.

Tweedie reported that 70% of pharmacies in WA have reported a decline in turnover of 20% or more in recent months, as a result of the COVID-19 pandemic, however, few have qualified for JobKeeper payments, and have been unable to access support through the Commercial Tenancies (COVID-19 Response) Act 2020.

He added that many community pharmacy owners who have accessed government support, have reported that landlords are acting outside the requirement to act reasonably and in good faith, often engaging in difficult, protracted and delayed negotiations.

"It has become clear during this Covid period that legislation is required in order for tenants to receive the financial assistance they need to remain viable and survive into next year", he said.

"The imbalance between landlord and tenant has required the National Cabinet to develop a Code of Conduct and two dedicated pieces of quickly drafted Western Australian legislation highlights the challenge.

"As a result, very few community pharmacies have been able to access their entitlements, but rather are caught between an offer of 'take it or leave it' from landlords and the alternative, which is an expensive and time-consuming determination service."

The legislation includes a moratorium on evictions, freezes rent increases and a code of conduct for small business commercial lease rent relief negotiations.

WA Small Business Minister, Paul Papalia, said the extension of the Commercial Tenancies (COVID-19 Response) Act 2020 would "assist these tenants to negotiate further rent relief with their landlords to provide breathing space as the WA economy contines to rebound."