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The state government has indicated that its Commercial Tenancy Relief Scheme (CTRS) will be extended through until March.
Acknowledging the impact of the COVID-19 Omicron variant on businesses, the CTRS will be extended to 15 March 2022 “to provide further financial relief and security for thousands of small businesses across the state”.
Available to businesses with an annual turnover of $10 million or less and which have suffered a decline in turnover of at least 30 per cent due to COVID-19, the Victorian Minister for Small Business, Jaala Pulford, said: “Victorian small and family businesses play a critical role in creating jobs and driving economic growth – and that’s why we’re supporting them to get through this challenging period.”
Under the scheme, landlords are required to provide continued proportional rent relief in line with a reduction in turnover. Under the example given by the government, 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 is to be waived, with the remainder deferred. The freeze on rent increases and the eviction moratorium is also set to continue.
According to the state government, the Victorian Small Business Commission (VSBC) will continue to provide mediation support to affected tenants and landlords where parties can’t reach a satisfactory agreement.
The latest regulations will kick in from 16 January 2022, with the extension flagged as providing any small or family businesses already relying on deferments more time for repayments.
The $20 million Commercial Landlord Hardship Fund will continue to provide support to eligible commercial landlords that have provided rent relief to their tenants, while their tenants are eligible for the scheme.
This fund forms part of the $13 billion in funding provided to businesses across Victoria throughout the pandemic, Ms Pulford flagged.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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