Extended Support for Commercial Tenants During COVID-19
The Victorian Government has extended the Commercial Tenancy Relief Scheme (CTRS) from 16 January 2022 to 15 March 2022 to provide rent relief to commercial tenants and hardship relief to landlords.
Commercial tenants may apply to landlords to obtain a waiver of the rent and deferral of the rent during this period if:
- The tenant has an annual turnover of $10 million or less; and
- The tenant has suffered a decline in turnover of at least 30% due to COVID-19.
Rent relief will be proportionate to the reduction in turnover. The tenant must pay the rent equivalent to the turnover of the pre-pandemic period, with the balance at least half being waived, and the remainder being deferred. For instance, if turnover is 40% of pre-pandemic period, the tenant may be charged 40% of its rent and at least 30% of the balance of the rent may be waived and 30% of the rent deferred.
The CTRS provides further benefits to the tenant in the form of:
- A freeze on rent increases during this period;
- A moratorium on evictions until after mediation through the VSBC is undertaken; and
- An extension on the period to pay the deferred rent in existing agreements.
Further information can be obtained from the Victorian Small Business Commissions website here.
Commercial landlords that experience hardship may be eligible for grants as the Victorian Government has also extended the Commercial Landlord Hardship Fund from 15 January 2022 to 15 March 2022. Further information can be obtained here .
Our Property Team is available to assist you with any questions you might have. Email us your enquiry.