Rent relief for small and family businesses

The Victorian Government has introduced new regulations under the Commercial Tenancy Relief Scheme to support small and family businesses experiencing financial hardship due to the latest wave of the pandemic.

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 operate from 16 January 2022 and run until 15 March 2022.

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 backed Victorians businesses by providing 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 shortly.

We will continue to provide you information on any new grants announced across Australia. In the meantime if you would like any assistance that your business would be eligible for, please contact your accountant via the details below:

Melbourne

Matt Murphy – mattm@primefinancial.com.au
Brendan Brown – brendanb@primefinancial.com.au
Simone Quin – simoneq@primefinancial.com.au
Paul Minieri – paulm@primefinancial.com.au
Jade Nicholls – jaden@primefinancial.com.au
Stuart Thomson – stuartt@primefinancial.com.au

This post is provided by Prime Accounting and Business Advisory Pty Ltd. Liability limited by a scheme approved under Professional Standards Legislation. This post is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this post. All information is subject to change without notice. We and each party providing material displayed in this post disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of information or material in this post. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

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