Victoria and NSW extend rent relief program

Victoria

Businesses with an annual turnover of $10 million or less that have suffered a decline in turnover of at least 30 per cent due to the effects of the new Omnicron variant, will be eligible for support as the state government’s rent relief program is extended to March 15 2022.

There will be some changes to the Scheme and its operation will be retrospective, starting 16 January 2022.

Under the Scheme, landlords will be required to provide continued proportional rent relief in line with a reduction in turnover.

This means a business with a turnover at 40 per cent of pre-pandemic levels, can only be charged 40 per cent of its rent. Of the remaining 60 per cent, at least half must be waived, with the remainder deferred.

Tenants and landlords should abide by the conditions in their current rent relief agreement. Businesses that already have deferred rent under the Scheme will have more time to repay it because of the Scheme’s extension.

The freeze on rent increases and a moratorium on evictions will also continue.

Eligible commercial landlords that have provided rent relief to their tenants will continue to receive support through the government’s commercial landlord hardship fund while their tenants are eligible for the scheme.

NSW

A similar scheme in NSW has also been extended.

The extension of rent negotiation rights in NSW for tenants affected by the covid pandemic will last until March 13 2022. The protections stop landlords from being able to terminate leases when rent hasn’t been paid, and forces them to negotiate rent relief for businesses with an annual turnover of less than $5 million that have seen turnover reduce more than 30 per cent.

Landlord support

The Small Business Commissioner’s code of conduct says there must be consideration of the landlords’ ability to afford to provide waivers and also requires landlords to pass on reductions in charges such as land tax or council rates and loan deferrals. Land owners have been given until February 28 to apply for land tax relief.

Eligible NSW landlords can access the Commercial Landlord Hardship Fund, which provides small commercial or retail landlords with a monthly grant up to the value of any rental relief provided, to a maximum of $3,000 per month per property. 

You can apply for either the land tax relief, the residential tenancy support payment, or the commercial landlord hardship grant. As you can only apply for one, you'll need to decide which is more appropriate for you before applying. Applications close February 28 2022.

Contact TaxAssist Accountants

If you need any help or advice with the financial aspects of running your business, please contact us today on 02 9608 3707 or complete our contact form. We’ll be glad to help.

Last updated: 9th July 2022