Rent relief scheme extended for businesses

THE Victorian government has extended rent relief for small and family businesses affected by the latest wave of the COVID-19 pandemic, using new regulations under the Commercial Tenancy Relief Scheme.

Eligible commercial tenants with an annual turnover of $10 million or less who have suffered a decline in turnover of at least 30 per cent due to COVID-19 will be able to access the scheme.

The new regulations apply retrospectively from January 16 and will run until March 15.

Commerical tenants need to demonstrate their decline in turnover by comparing January 2022 to January 2020. Landlords will be required to provide proportional rent relief to their commercial tenants in line with the reduction in turnover.

For example, a business with a turnover of 40 per cent of pre-pandemic levels could only be charged 40 per cent of its rent. Of the balance, at least half the rent must be waived, with the remainder to be deferred.

The freeze on rent increases will continue.

The majority of landlords and tenants will negotiate in good faith to reach agreement.

The Victorian Small Business Commission (VSBC) will continue to provide information and free mediation to tenants and landlords if help is needed for all parties to reach an agreement.

Many commercial landlords have already provided rent relief to commercial tenants.

Eligible commercial landlords will continue to receive support from the Victorian government, with more details on a new round of the Commercial Landlord Hardship Fund to be announced soon.

The Commercial Tenancy Relief Scheme was first launched in 2020 and reintroduced in July 2021, and has provided financial relief and rent protections for thousands of Victorian businesses.

“Small and family businesses are going through a challenging period due to the Omicron wave and that’s why we are extending the Commercial Tenancy Relief Scheme,” Minister for Small Business Jaala Pulford said.

“The new regulations will help to ease the financial burden for many small and family businesses that are facing hardship caused by the pandemic.

“I would like to acknowledge and thank those commercial landlords who continue to do the right thing by their tenants during such challenging times.”

For full details of the scheme including eligibility, head to the VSBC’s website or phone 13 87 22.