Coronavirus

The Hon. C.M. SCRIVEN (14:31): I seek leave to make a brief explanation before asking a question of the Treasurer regarding COVID-19 responses.

Leave granted.

The Hon. C.M. SCRIVEN: Between 29 March and 7 April the national cabinet released principles for and specific details of a National Cabinet Mandatory Code of Conduct—SME Commercial Leasing Principles during COVID-19. Businesses have been contacting the opposition, and these businesses are facing bankruptcy due to lease issues. Landlords have been asking for help because they are not sure what they are supposed to do to be fair, legal and consistent in their actions.

On 8 April this parliament passed emergency COVID-19 legislation that gave sweeping powers to make emergency regulations that could put the code into effect immediately. However, the Attorney-General's office has made it clear that the implementation of the national code is the responsibility of the Treasurer. My question to the Treasurer is: what are the delays in the Treasurer's office that mean, more than a month after the national cabinet's approval of the principles for commercial leasing, that the mandatory code is not yet mandatory in South Australia, and why is the Attorney-General unable to make such regulations?

The Hon. R.I. LUCAS (Treasurer) (14:32): The proposed national code is one that state and territory jurisdictions are wrestling with. I'm advised that as of this morning no state or territory has actually implemented the national cabinet mandatory code for commercial leasing. A number of jurisdictions—the Queensland Labor administration, the Western Australia Labor administration—have gone out to consultation on the national code because there are strong views against some aspects of the proposed national code. A number of other jurisdictions have introduced regulatory change; I think as recently as Friday New South Wales introduced regulatory change and, whilst it referred to giving effect to the national code, key elements of the national code were not included in the regulatory change in South Wales.

As of this morning, my advice is that at this stage no state or territory jurisdiction has implemented the national code word for word. It is fair to say that the majority of states are endeavouring to implement as much of the national code as they can in relation to their jurisdictions, or as much as they agree with in relation to their jurisdictions. Each of the states have completely different arrangements in relation to residential leasing but also commercial leasing, as the national code refers only to commercial leasing.

In relation to the South Australian government's position, we have been consulting widely with our interstate colleagues and with the conflicting views in the broader business community. If I can give one simple example: one prominent stakeholder group that represents business interests disagrees strongly with the $50 million turnover limit and believes it should be reduced to $10 million in South Australia and that one size doesn't fit all as it relates to the South Australian workplace, also the South Australian industrial conditions, as opposed to, say, Sydney or Melbourne. Another prominent business organisation believes we should increase the $50 million to a figure higher than that. So there are wildly differing views about aspects of the national code.

In terms of the South Australian government's position, we have done two things. We have legislated in COVID (1). We will be introducing probably some minor legislative change in the next sitting week, proposing it to the parliament in what we might refer to as the COVID (3) bill. It would be intended at that time to introduce the final concluded view that we have about regulatory change by way of major changes to regulations as opposed to legislation. It is fair to say that in two or three of the other jurisdictions, there is still not a concluded position in relation to how they intend to implement the national code.

In the interim, of course, the government has announced significant land tax relief for landlords, making it quite clear that in addition to the $70 million of land tax cuts that will commence from 1 July this year we will provide up to a further $50 million of land tax relief in the period leading up to 30 June this year—up to a quarter of the land tax bill for eligible landlords. That is on the condition that landlords pass on that relief to tenants by way of reduced rental income. I finally remind members that whilst all this is going on—I think in all jurisdictions, but certainly in South Australia—in the COVID (1) bill we have banned evictions on the basis of COVID-19-related inability to pay rent, whether it be in the residential sector or whether it be in the commercial sector.

So the government is working as quickly as we can in terms of coming to a resolution of what are complicated and complex provisions and seeking to implement as much of the national code as might be possible and as appropriate in South Australia.