Rent relief for businesses

The state government has made it a requirement for landlords to help eligible businesses by offering rent relief.

Businesses that have endured a serious trading downturn due to no fault of their own will be supported with rent relief payments through the Commercial Tenancy Relief Scheme. Separate support will be provided to landlords who do the right thing by their tenants.

The Scheme will be available to businesses with an annual turnover of less than $50 million and have suffered a decline in turnover of at least 30 per cent due to coronavirus.

Landlords will be required to provide proportional rent relief in line with a business’s reduction in turnover. For example, a business with a turnover of 40 per cent of pre-pandemic levels can only be charged 40 per cent of its rent. Of the balance, at least half must be waived, with the remainder to be deferred.

A mediation service for tenants and landlords will further support fair tenancy negotiations.

Tenants and landlords will be encouraged to enter negotiations directly, with the Victorian Small Business Commission (VSBC) available to provide mediation if parties cannot reach satisfactory agreement. Landlords will not be able to lock out or evict tenants without a determination from the VSBC.

The government said it will create an $80 million hardship fund for landlords who provide rent relief to eligible tenants, with further details to be confirmed in due course.

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