Commercial Tenancy Relief Scheme
The Victorian Government has introduced the Commercial Tenancy Relief Scheme (the Scheme) to ease the financial hardship faced by commercial tenants as a result of the coronavirus (COVID-19) pandemic.
To be eligible, the tenant must be a small to medium enterprise with an annual aggregate turnover under $50m who has had a minimum 30%reduction in turnover, and has followed the process under the Scheme for requesting rent relief from their landlord.
Commercial landlords are required to give their tenant rent relief that is in proportion to their tenant’s fall in turnover because of coronavirus and that is made up of a minimum 50 per cent rent waiver (the remainder can be made up of a rent deferral). There will also be a freeze on rent increases until 15 January 2022.
Newer businesses that weren’t operating in 2019 will also be protected, with special arrangements in place to calculate their turnover impacts for businesses that were not operating in 2019.
The Victorian Small Business Commission (VSBC) will provide support to tenants and landlords through a free mediation service to assist parties in reaching a fair agreement that they can both accept.
Landlords who provide rent relief to their tenants will be supported through a $120 million package. The package comprises a $20 million Commercial Landlord Hardship Fund and $100 million to support land tax relief of up to 25 per cent for landlords who support their tenants.
A mandatory reassessment at 31 October 2021 enables both parties to check in and assess whether circumstances have changed and rent relief needs to be adjusted.
The Scheme is effective from on 28 July 2021 and will run until 15 January 2022.
For further information about the Commercial Tenancy Relief Scheme, please visit Victorian Small Business Commission website by clicking the button.
Questions?
For further information about the Commercial Tenancy Relief Scheme, please visit Victorian Small Business Commission website by clicking the button.
Alternatively, if you wish to speak to one of our team regarding these support programs or any other COVID payments please contact our office on 03 9693 5000 or email us at office@dfknugents.com.au.
