Commercial tenancy relief scheme
A scheme to alleviate financial hardship faced by tenants and landlords as a result of coronavirus (COVID-19).
The Victorian Government has announced (15 April 2020) a commercial tenancy relief scheme to alleviate financial hardship faced by tenants and landlords as a result of coronavirus (COVID-19).
For commercial tenants and landlords, the scheme will provide the following support:
- a six-month moratorium on commercial tenancy evictions from 29 March 2020 for the non-payment of rent for small to medium enterprises with an annual turnover under $50 million that have experienced a minimum 30 per cent reduction in turnover due to coronavirus (COVID-19)
- 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 (COVID-19), to be negotiated between tenant and landlord
- a mediation service for commercial tenants and landlords to support fair tenancy negotiations.
The Victorian Government will also provide land tax relief to commercial landlords that provide rent relief to their tenants, provided:
- the tenant’s annual turnover doesn’t exceed $50 million
- is an eligible business in the Commonwealth’s JobKeeper program, and
- is suffering financial stress or hardship as a result of the pandemic.
The Victorian Government will also provide land tax relief to residential landlords who provide rent relief to eligible tenants.
Visit www.business.vic.gov.au for full details.