With property values reaching a record high across Australia since the onset of COVID, the outcome is much bleaker for the rental market.
Commercial properties’national vacancy rate has hit 11.75 per centdue to entire offices working from home, and further increases may be on the way.
Rental lease agreements
With flexible working arrangements becoming commonplace, the ability to command pre-COVID rents has been significantly affected. Many landlords are currently offering lease agreements with several incentives to lure tenants back into the market.
The problem for related-party tenants is that the specific incentive terms are not always publicly available as negotiations occur behind closed doors.
While there may be anecdotal evidence to support the rapidly changing nature of commercial lease agreements, SMSF auditors may not consider this to be sufficient appropriate audit evidence at audit.
Regulation 8.02B of theSIS Regulationsrequires that all assets must be…
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