Due to the re-emergence of Covid-19, the Victorian Government has announced they will be reintroducing the Commercial Tenancy Relief Scheme to ease the pressure faced by eligible commercial tenants by providing rent relief, and offering separate support to landlords who offer support to their tenants.
In order to qualify for the Commercial Tenancy Relief Scheme, eligible commercial tenants must:
· have an annual turnover of less than $50 million; and
· experienced a decline in turnover in business of at least 30% due to coronavirus
The Scheme requires Landlord to provide eligible businesses with proportional rent relief that is consistent with the tenant's reduction in business turnover. The amount of rent relief that is available for eligible tenants is calculated by comparing the business’ turnover for the final quarter of 2020/21 financial year with the turnover for the final quarter of 2018/19 year. For example, if an eligible business has experienced a 30% downturn in business due to the pandemic when compared with the business’ pre-pandemic levels, then the business can apply for a proportional reduction of their rent by 30%.
The scheme also expands the mediation service for eligible commercial tenants and landlords to support negotiations between parties experiencing difficult times.
Landlords that offer support to tenants through the Scheme will also be eligible to receive rent relief under a hardship fund established by the Victoria Government. Additionally, the Victorian government will offer land tax relief up to 25% to landlords who provide rent relief to eligible tenants under the scheme.
Eligible tenants and landlord are encouraged to contact the Victorian Small Business Commission for more details.
*Disclaimer：This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice before taking any course of action.
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