Strategies and advice for businesses to stay in control through COVID-19 and get ahead of the pack

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COVID-19 Business Continuity – 30th September

I’m here with the COVID-19 continuity update for Australian businesses on 30th September.

In this briefing:

1. Victorian Government Business Support Grants – further insight
2. Victorian commercial leases rent relief
3. Victorian land tax relief for landlords

1. Victorian Government Business Support Grants

The Victorian Business Support grants are still open and they are worth between $10,000 – $20,000 to businesses that have an eligible ANZSIC industry class code – see the list on my email of 23rd September: https://tenfoldcoaching.com.au/covid-19-business-continuity-23rd-september/

As I explained on 23rd September, if your business’ ANZSIC code is not on the list of eligible industry classes, consider if you have the correct code for your current operations. This is particularly relevant for businesses that have modified due to the restrictions. You may consider changing your ANZSIC code to best reflect your business’ activity during the restrictions.

If your current ANZSIC code is correct and it isn’t on the list of eligible industry classes, you should still consider applying for the business support grants as our business coaches know of some businesses that have had their application approved and already been paid the grant even though their code isn’t on the ANZSIC list. It would seem that there is some flexibility in the criteria for support funding.

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2. Victorian commercial leases rent relief

Legislation has passed in the Victorian parliament to extend the provisions for commercial and residential tenancies.

I can confirm that the freeze on rental price increases has been extended to 31st December 2020. The moratorium on rental evictions has also been extended to the end of the year.

Businesses that remain in JobKeeper will be able to negotiate rent relief in proportion to the decline in your turnover, by way of 50% waiver and a 50% deferral of rent. There is still some uncertainty (and the possibility) that rent relief will be available for businesses that are now out of JobKeeper.

Although the legislation has passed, the Victorian Small Business Commission is yet to update the information on their website. My read of the legislation is that it appears that rent relief is to be provided for any tenant affected by COVID; I’ll update you further in the weeks to come.

This could be significant savings for Tenfold clients. We’ll keep checking the government sources to validate or adjust our interpretation, and I’ll let you know when we confirm either way.

A Tenfold business coach can help you prepare for negotiations, either as a landlord or a tenant. For advice for your business, call Tenfold to make a time with a business coach to discuss your situation.

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3. Victorian land tax relief for landlords

Further land tax relief for landlords is available as part of the extension of the commercial and residential tenancy rent relief scheme.

Landlords who provide eligible tenants with a 50% or more outright rent waiver for at least three months are eligible for:
• An increased 50% waiver of the property’s 2020 land tax, and
• Deferral to 31 March 2021

This applies to both residential and commercial properties. Commercial landlords who apply for land tax relief must continue to provide rent relief as per the Commercial Tenancy Relief Scheme.

If you’re an owner-occupier of your commercial property, you can get a 25% waiver of the property’s 2020 land tax, and payment of the remaining tax can be deferred to 31 March 2021. This is for owner-occupiers who would be eligible under the Commercial Tenancy Relief Scheme as if they were a tenant.

If you have previously applied for a 25% waiver and you want to apply for this further relief, you’ll need to make a new application. SRO has advised that applications are temporarily suspended while they update their process.

For more information on land tax relief, speak with a Tenfold business advisor or visit this page on the State Revenue Office website: https://www.sro.vic.gov.au/news/further-land-tax-relief-landlords

 

Ash

Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Managing Director
Tenfold Business Coaching

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