Rent relief for businesses back

THE State Government is set to provide assistance to small and medium-sized Victorian businesses following the latest round of COVID-19 related lockdown.

Last Wednesday, the Commercial Tenancy Relief Scheme was reintroduced, providing rent relief for eligible tenants by “facilitating commercial rent waivers and deferrals”.

Eligible businesses include those with an annual turnover of less than $50 million and a decline in turnover of at least 30 per cent due to the COVID-19 pandemic.

Western Victoria upper house MP and Minister for Small Businesses Jaala Pulford said the State Government is committed to helping small businesses as they emerge from the state’s fifth lockdown.

“Victorian businesses have played a key role in the effort to keep us safe, making enormous sacrifices, and many of them are doing it really hard,” she said.

“As we emerge from lockdown, this is exactly the right time to provide relief for those businesses that need extra assistance to get back on their feet.”

As part of the rent relief scheme, landlords will be required to match rent reductions in line with a business’ reduction in turnover.

This means an operation with a decline in turnover of 40 per cent can only be charged 40 per cent of their rent.

Tenants and landlords will be assisted with their negotiations with the Victorian Small Business Commission providing mediation if an agreement is not met, and an $80 million hardship fund available for landlords who provide rent relief.

“We’re calling for good-faith negotiations between tenants and landlords, and the hardship fund will mean landlords who find reasonable common ground will be supported,” Ms Pulford said.

The scheme was announced 24 hours after Member for Ripon and shadow treasurer Louise Staley held a media event on Little Bridge Street, saying the lack of rent relief for small businesses was “cruel.”

“Small business owners have sacrificed so much to stay afloat through this pandemic, providing vital goods, services and jobs,” she said.

“We must support them with rent relief before it’s too late.”