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In Aus, the State and Fed government are trying to keep the commercial leases in place. If commercial lease domino falls, then next will be commercial loan defaults, then all of Australia becomes Detroit.
They need to act fast though. Currently ATO has a tax deferment for GST payments set back to late May. They've announced the $1.7 billion for Victoria, and Federal funds available, but the website only has a "Register your expression of interest" option for the Small business stimulus.
Businesses will be uncertain of how long this shutdown will last. Think about the incentive for shutting early and dropping burn rate to $0:
- wanting to keep some cash on hand for personal life preserving supplies
- Many have already made staff redundant without pay
- next biggest expense is rent, and rent is high based on 2019 going rates
- Best to close the business, put capital expenses into long term storage.
- So many other businesses will close that commercial leases will favour renters when society returns to normal
- Hell, commercial property market may take such a hammering that those who rent now may be able to own a commercial property outright.
So yes, government needs to act fast to give a good reason for keeping one's business primed for reopening. Stop the businesses from bleeding out.
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