To continue supporting small business tenants under ongoing financial pressure due to Covid, the Victorian Government has extended the Commercial Tenancy Relief Scheme until 15 March 2022.
Key features include:
The new relevant legislation is the Commercial Tenancy Relief Scheme Regulations 2022. The 2022 Regulations are effective retrospectively from 16 January 2022 (the day after the previous Regulations expired) to 15 March 2022.
Tenant’s eligibility:
- A tenant who carried on business in Australia as at 16 January 2022 (to potentially capture new Leases);
- Annual turnover under $10M (down from $50M in previous schemes) in the financial year ending 30 June 2021. Turnover includes any government support payments received during the applicable period;
- minimum 30% reduction in turnover due to covid (generally comparison/ test period is January 2022 versus January 2020, with some exceptions); and
- Tenant must follow required request process (new written request to the Landlord for the applicable period by 15 March 2022, separate from any previous rent relief requests made), supply the required evidence and keep paying the required rent.
Rent relief to:
- Be offered within 14 days of receiving the request and all required information from the tenant;
- match the tenant’s fall in turnover because of COVID-19; and
- made up of a minimum 50% rent waiver, the remainder can be made up of a rent deferral.
Payment of deferred rent under previous agreements for rent relief has been pushed back to 15 March 2022.Evictions and rental increases for eligible tenants continue to be banned during the applicable period.
The Commercial Landlord Hardship Fund will continue to be available for eligible Landlords.
The Victorian Small Business Commission (VSBC) continues to be be available to provide assistance in resolving any rent relief disputes.
GormanKelly’s expert property managers are here to assist our valued clients with navigating through this process. Please don’t hesitate to contact us with any queries you may have.
