With Canberra already leading the nation with the highest rate of business insolvencies, independent representatives are joining with the business community to call for a joint package of support from the ACT and Federal Governments to prevent further closures as a result of light rail construction works on London Circuit.

ACT Independent Senator David Pocock, Independent MLA Thomas Emerson and Canberra Business Chamber CEO Greg Harford stood alongside local small business owners asking for urgent assistance.

Some of Canberra’s most iconic and beloved hospitality venues are among the businesses most severely impacted by the construction works which are due to continue for some three years and are being jointly funded by both levels of government.

While recognising potential longer term benefits to local business from the light rail extension, the group is calling for an immediate support package for adversely impacted businesses in the direct vicinity of the construction works for the duration of the construction activity including:

• rates relief consistent with a motion passed unanimously by the ACT Legislative Assembly on 5 March 2025 but not implemented as yet;
• rent assistance co-funded by the Commonwealth and ACT Governments for those most severely impacted (as measured by a decline in turnover and administered via a grants process);
• a special amnesty period from the ATO on any interest and penalties incurred during this period and a supportive approach to payment plans where required.

Senator Pocock said the ACT needed to learn from the experiences of other jurisdictions to support local business through the disruption so they can go on to thrive and continue to contribute to the local economy.

“Providing support now to our local small businesses will pay dividends in the longer-term by maintaining a vibrant city centre through this difficult period,” Senator Pocock said.

“There are  plenty of previous examples of governments stepping in to support small businesses at times of extreme stress, and that’s what we need to see now to ensure the survival of some of our most successful local enterprises. We can’t afford to see even more local businesses go under.”

Independent MLA Thomas Emerson highlighted the impact on the night-time economy.

“We might have a dedicated night-time economy minister, but some of the iconic venues that fuel our night-time economy are being hung out to dry by our government,” Mr Emerson said. 

“City-shaping venues shouldn't become the collateral damage of city-shaping infrastructure works. These venues need a proper support package, not just vague assurances about 'ongoing engagement'.  

“Community members who value Canberra's cultural vibrancy expect meaningful action to ensure affected businesses can survive this multi-year disruption to their operations.

Canberra Business Chamber CEO Greg Harford said: “The Canberra Business Chamber has made repeated calls for rates relief for impacted properties, and provisions to make sure that this relief is passed on to the tenants of those properties.

“Many small businesses are operating on wafer thin net margins, and it doesn’t take much of a drop off in customers to tip a business from being sustainable into needing to close down,” Mr Harford said.

COSBOA CEO Luke Achterstraat said small businesses in Canberra and all over Australia deserved a fair go, with economic modelling showing a targeted company tax rate cut for small businesses would provide instant relief.

“Our local economies rely on small businesses – they are big employers and are part of our social fabric, strengthening communities and creating opportunities,” Mr Achterstraat said. 

“That’s why COSBOA has called for a cut to the small business company tax rate from 25% to 20%. This would provide the instant relief small businesses need to keep the doors open, grow and reinvest back into our communities.”

Ant Arena, CEO of Lala Hospitality Group, owner of Molly’s and other local establishments, said, “The ACT remains one of Australia’s most heavily taxed jurisdictions, and small businesses, particularly in hospitality, are bearing the brunt. Despite promises of support, the reality on the ground is one of red tape, inaccessible support, and a lack of meaningful engagement from government.

“If the ACT Government wants a vibrant city and thriving small business sector, it needs to seriously rethink its tax settings, prioritise practical support, and acknowledge the damage that these overlapping pressures are causing to local operators,” Mr Arena said.

General Manager & Owner of Bar Rochford Nick Smith said, "If you take a look at some of the images of what’s happening or ask any of the business owners around London Cct, no one is doing well at the moment. 

“There is zero compensation from the ACT Government during the construction period, hence why Rochford has been holding several additional events to boost the bank balance during an already stressful financial time.

“Whilst we recognise the importance of change in this city and support the Light Rail, two - potentially three years of boarded construction, limited access for customers, next to zero parking options for elderly patrons on weekends (that’s in a functional walking distance) and constant late arrivals for bookings has put a serious dent on our service and business,” Mr Smith said.