Commercial Landlord Hardship Fund Extended!

Following the Victorian Government recently announcing that it has extended Commercial Tenancy Relief Scheme (the Scheme) until 15 March 2022, regulations for the Scheme have been announced.

Key changes under the extended Scheme

One of the major changes of this extended scheme is that its operation will be retrospective starting 16 January 2022 to ensure tenants previously accessing the rent relief (and are still eligible under the extended Scheme) don’t experience a gap in supports.

Further, the extended Scheme will be available to businesses with an annual turnover under $10 million who have experienced a drop in turnover of at least 30% or more due to COVID-19.

Landlords will be required to keep providing rent relief that matches their eligible tenant’s fall in turnover. For example, a business with a turnover of 35% of what it was pre-pandemic would only be charged 35 per cent of its rent. Of the remaining 65 per cent, at least half needs to be waived and the remainder deferred.

For more information on the scheme or its eligibility requirements, please visit the program overview or contact your King & Whittle adviser.

Our previous article regarding the last Commercial Landlord Hardship Fund 3 is here for reference.