Commercial tenants get rent relief

The legislation, which passed State Parliament on Thursday, will again allow local businesses to receive rent reductions.

To be eligible, businesses will have experienced a loss in turnover of more than 30 per cent during the pandemic, with separate support provided to landlords.

As part of the scheme, landlords will be required to provide proportional rent relief in line with a business’s reduction in turnover.

Tenants and landlords are encouraged to enter negotiations directly, with the Victorian Small Business Commission able to mediate if parties can’t reach agreement.

A tenant’s percentage drop in turnover will determine the amount of initial rent relief available to the them.

Rent relief for eligible tenants will be calculated by comparing their turnover for the final quarter of the 2020-21 financial year with turnover from the final quarter of 2018-19.

Special arrangements will be in place to assess the turnover impacts for businesses that were not yet operating in 2019.

Victorian Minister for Small Business Jaala Pulford said the legislation would provide security for small businesses.

“This passing of this legislation provides peace of mind for small businesses who are struggling to pay the rent, giving them the security they need,” Ms Pulford said.

“Tenants and landlords have already been working together really well and we’d encourage them to continue to do so to achieve fair outcomes.”

For more information, tenants and landlords can call the Victorian Small Business Commission on 138 722 or visit vsbc.vic.gov.au.