Commercial Tenancy Relief

The Victorian Government has extended the Commercial Tenancy Relief Scheme (CTRS), providing rent relief and protections for commercial tenant and landlords experiencing hardship through the latest wave of the pandemic. The CTRS was created in 2020 and reintroduced in July 2021 to support small to medium businesses. It will be extended to March 15, 2022 to provide further financial relief and security for thousands of small businesses across the state.

Managing director of Morris Bros Real Estate, Peter Morris welcomed the latest round of rent relief announced by the State Government. “Many commercial business tenants and indeed their investor landlords have had a very tough time over the COVID periods”, Mr Morris said. “We have found most landlords very sympathetic to the plight of their small business tenants and as a consequence in most cases good outcomes have been negotiated by their agents acting as the go between for the parties.  “This latest round of relief offered by the State Government will be great news for tenants and give them confidence to stay the course. Small business is the backbone of the local commercial activity in our city and all regional areas.” The extended scheme will be available to businesses with an annual turnover of $10 million or less and which have suffered a decline in turnover of at least 30 percent due to COVID-19.

Landlords will be required to provide continued proportional rent relief in line with a reduction in turnover. For example, a business with a turnover of 40 percent of its rent. Of the balance, at least half would be waived, with the remainder to be deferred. The freeze on rent increases will continue.

The Victorian Small Business Commission (VSBC) will continue to provide mediation support to tenants and landlords if parties cannot reach a satisfactory agreement. The eviction moratorium will continue. Landlords will not be able to evict tenants without undertaking mediation through the VSBC.

The new regulations took effect from last Sunday. Tenants and landlords should abide by the conditions in their existing agreement. Small and family businesses that already have a deferment will have more time for repayments as a result of this extension. Eligible commercial landlords that have provided rent relief to their tenants have received support through the $20 million Commercial Landlord Hardship Fund. They will continue to do so while their tenants are eligible for the scheme.
Full details of the scheme including eligibility will be published on the VSBC’s website.

Tenants and landlords can contact the VSBC for further information on 13 87 22 or visit vsbc.vic.gov.au