Commercial Tenancy Rent Relief Scheme
Commercial Tenancy Rent Relief Scheme - TENANTS
The Victorian Government has issued new regulations to offer further relief for commercial tenants struggling with rent payments.
The scheme will help small and medium-sized businesses with an annual turnover of less than $50 million that have experienced a loss in turnover of more than 30 per cent during the pandemic.
Eligibility for rent relief has been broadened, with tenants now able to choose three consecutive months between 1 April and 30 September 2021 to compare to their turnover in the same three months in 2019.
Businesses will get financial relief in the form of a proportionate reduction in rent. For example, a business with a turnover of 40 per cent of pre-pandemic levels can only be charged 40 per cent of its rent. Of the balance, at least half must be waived, with the remainder to be deferred.
What Actions Do You Need To Take?
To receive a reduction in your rent you will need to action the following:
- Send a letter to your commercial landlord. A template can be found here: Rent Relief Request Template
- Complete a Statutory Declaration which can be found here: Victorian Statutory Declaration
Along with your letter and Statutory Declaration, you need to supply one of the following to confirm your reduction in turnover for three consecutive months between 1st of April 2021 and 30th of September 2021 compared to the same periods in 2019:
- Reports from your accounting records showing evidence of your turnover comparison figures, or
- Business Activity Statements showing evidence of your turnover comparison figures, or
- Statements from your bank showing comparative reduced income, or
- A statement from your Accountant showing evidence of your turnover comparison figures
If you are on Xero, here is a link to a 3 minute video to show you how to extract your reports to attached to your rent relief letter: Xero COVID Support Report Video
We believe most business owners will be able to prepare this information for the rent relief. If you do need our help, please call our office on 03 8746 7700 and you can book an appointment with one of our COVID Grant team experts. The fee for this work will be dependant on the level of help you need.
Commercial Tenancy Rent Relief Scheme - LANDLORDS
Landlords, you have not been forgotten. Landlords who have provided rent relief to their tenant will be eligible for land tax relief as part of the Victorian Government’s 2021 measures. These measures have not been confirmed but the expectation is that there will be a 25% reduction in land tax for those commercial landlords who provide this rent relief. Keep an eye on our socials for more detailed information once it is released.
Wishing everyone the best of health during these trying times. The full Suntax team are working from home to support you, please be kind to each other, look after each other and try have a laugh every now and then. If you need something to laugh at - why not have a chuckle at one of our directors attempts at making home-made glasses out of his mask.
We are here for you.
The Suntax Team