The Victorian Government has announced a commercial tenancy relief scheme to alleviate financial hardship faced by tenants and landlords as a result of Coronavirus.
“This support will help small businesses keep their doors open, keep employing and keep driving the state’s economy,” said Minister for Small Business, Adem Somyurek.
According to the Victorian Small Business Commission (VSBC), the scheme will provide:
- a six-month moratorium on commercial tenancy evictions for the non-payment of rent for small to medium enterprises with an annual turnover under $50 million that have experienced a minimum 30 percent reduction in turnover due to Coronavirus, commencing from 29 March 2020
- a freeze on rent increases during the moratorium for commercial tenants
- a rental payment waiver or deferral proportionate to commercial tenants’ income reduction due to Coronavirus, to be negotiated between the tenant and landlord
- a mediation service for commercial tenants and landlords, accessed through the VSBC, to support fair tenancy negotiations.
The Government will also provide land tax relief to eligible landlords that provide rent relief to their tenants. Eligibility depends on tenant annual turnover, JobKeeper Payment entitlement, and overall impact of Coronavirus.
For more information
Victorian Small Business Commission: Commercial tenancy relief scheme
Business Victoria: Commercial tenancies relief scheme
Business Victoria: Process for commercial tenancies (fact sheet)
The National Cabinet: National Cabinet Mandatory Code of Conduct – SME Commercial Leasing Principles During COVID-19
Premier media release: Supporting Tenants And Landlords Through Coronavirus
VACC member bulletin: Commercial tenancy relief scheme - COVID-19 Update