I’m here with the COVID-19 continuity update for Australian businesses on 21st October.
I wrote on 30 September about the Victorian government’s extension to the commercial tenancy relief scheme. There was some uncertainty when the legislation was updated about which businesses would be entitled to rent relief. The Victorian Small Business Commission has since clarified that the scheme has been extended to 31 December only for businesses that are in JobKeeper extension.
What the commercial tenancy relief scheme means for small business commercial tenants in Victoria
This is good news for Victorian businesses that qualified for JobKeeper Extension. It means you are entitled to negotiate an extension to your rent relief. The guidelines are the same as the original scheme; the amount of your rent relief should be in proportion to the decline in your turnover, and should be 50% waiver and a 50% deferral of rent.
Speak to Tenfold for business coaching services that can assist you with submitting your request for rent relief, particularly if you didn’t apply for it under the original scheme.
Along with the rent relief period, the freeze on rental price increases has been extended to 31 December 2020. So too has the moratorium on evictions.
If your business is not in JobKeeper extension, you should plan for your rent to return to normal rates and also consider any scheduled increases such as annual CPI or market increases.
Business owners who are landlords with commercial tenants should assess whether you can resume normal rent rates or whether your tenant will be entitled to the extended rent relief. A Tenfold business coach will help you understand your options by using a financial model to assess the impact to your cash flow.
For detailed FAQS on the Victorian commercial tenancy relief scheme, visit VSBC here: https://www.vsbc.vic.gov.au/fact-sheets-and-resources/faqs/
We’re seeing a lot more pressure from industry leaders for the Victorian government to ease restrictions. Hopefully this will encourage the Victorian premier to move towards a pragmatic and sensible reopening of businesses.
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching