Are Commercial Tenants Entitled to Further Rent Relief?

Yes – the Victorian Government has extended the Commercial Tenancy Relief Scheme (the Scheme) to 31 December 2020 (the Extension Period).

Under the extended Scheme, commercial landlords must offer rent relief within the Extension Period that is in proportion to the fall in turnover if the tenant is eligible.  For instance, the rent relief should be 35% if the tenant’s turnover has been reduced by 35%.  However, a minimum of 50% of the rent relief offered must be comprised of a rent waiver, rather than a rent deferral only.

In order to request rent relief for the Extension Period commercial tenants will need to make a new written application to their landlord (unless they have previously made an application that includes all of the information required under the extended Scheme).  

Importantly, the landlord is only obliged to make a rent relief offer after the tenant has provided all of the required information.  Tenants should therefore make their applications as soon as possible and ensure that all required information is provided.

Even if a commercial tenant has already applied to the Victorian Small Business Commission to resolve a rental dispute for a period that runs before and after the extension to the Scheme they will still need to make the written application that meets the requirements of the extended Scheme. 

If you need further assistance regarding the operation of the Scheme, please contact us.