The Victorian Government will extend the Commercial Tenancy Relief Scheme (CTRS), providing rent relief and protections for commercial tenants and landlords experiencing hardship through the latest wave of the pandemic.
SUMMARY OF KEY POINTS
- The CTRS was created in 2020 and reintroduced in July 2021 to support small to medium businesses.
- From 16 January 2022, it will be extended to 15 March 2022 to provide further financial relief and security to eligible businesses that:
- Have a turnover of $10 million or less, and;
- Have suffered a decline in turnover of at least 30% due to COVID-19.
- Landlords will be required to provide continued proportional rent relief in line with a reduction in turnover. E.g.
- A business with turnover of 40% of pre COVID-19 levels can only be charged 40% of normal rent.
- Of the balance, at least half would be waived, with the remainder to be deferred.
- The eviction moratorium will continue. Landlords will not be able evict or lock out tenants without going through mediation with the Victorian Small Business Commission (VSBC).
- Tenants and landlords are being advised to continue to abide by the conditions in their existing agreements.
- The VSBC will continue to provide mediation support if tenants and landlords cannot come to a satisfactory agreement.
- Eligible commercial landlords that have provided rent relief to their can continue to receive support from the Commercial Landlord Hardship Fund whilst their tenants are still eligible for the CTRS. · For full details of the Commercial Tenancy Support Scheme extension – click HERE.
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