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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2020-07-22 Daily Xml
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Lease Disputes

The Hon. D.G.E. HOOD (14:35): My question is to the Treasurer. Can the Treasurer update the council on any progress of mediation of lease disputes currently being conducted by the Small Business Commissioner?

Members interjecting:

The PRESIDENT: Order!

Members interjecting:

The PRESIDENT: Order! The Treasurer.

The Hon. R.I. LUCAS (Treasurer) (14:35): I can. The Small Business Commissioner has provided me with an update—I think it was earlier today or yesterday—in relation to the progress of mediation. As members will know from previous answers I have given, I did have some concerns—not I; I think a lot of people had some concerns—that we may well find ourselves inundated with literally hundreds, if not thousands, of potential disputes between landlords and tenants.

Pleasingly, that has not been the case up until now. Certainly, on the most recent figures the Small Business Commissioner has provided me with, there have been 105 cases since 15 May. We are now over two months and the total is 105. The Small Business Commissioner has reported that 34 of those cases have been closed, 25 successfully and two unsuccessfully, at mediation, seven with assistance being provided, including where parties have come to an agreement or one party has not been able to be contacted, a mediation certificate issued. There are, I am advised, 71 COVID lease cases in progress at various stages, with the various mediations being scheduled over the coming weeks.

Whilst it is busy for the Small Business Commissioner, the legislation of the parliament passed some time ago now, in terms of encouraging landlords and tenants to try to resolve these things satisfactorily between themselves. The taxpayer is providing some generous incentives by way of land tax and other financial incentives to try to assist the resolution of any leasing disputes there might have been, which seem to have succeeded thus far.

There is still a not insignificant number of cases—105, as I said. That number is significantly less than the number we first contemplated when we were looking at the legislation in South Australia and nationally, when the national cabinet brought down its decision in relation to 'thou shalt not evict for a period of six months', which was a worthy initiative on behalf of the tenants, both commercial and residential, but nevertheless meant that there were significant issues, potentially for landlords and for tenants, in terms of having to renegotiate their arrangements as we managed our way through COVID-19.

Given the very worrying stories continuing to come out of Victoria, we remain eternally grateful to the work of the minister and senior public health officers in South Australia, and all the other people who have contributed towards the thus far excellent health outcomes that we have seen in South Australia. That has enabled, also with the easing of restrictions, a lessening of the tensions between landlords and tenants in terms of those businesses that might have been able to, with the easing of restrictions, start to generate income and revenue for those particular businesses and to slowly re-engage the employment of employees within their worksite.

That is clearly the ideal situation, as opposed to mediation and ultimately disputation before our Magistrates Court, but the process that has been established appears to have worked relatively well thus far, and I am indebted to this parliament, this chamber, for their willingness to support the legislation that the government introduced.

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