A new rent relief scheme has been announced

July 28, 2021

Uncategorized

The Victorian Government today announced a new/extended rent relief scheme for small to medium sized tenants in Victoria.

A copy of the press release is available here: https://www.premier.vic.gov.au/commercial-tenancy-relief-victorian-businesses

At this stage, there are more ‘unknowns‘ than ‘knowns‘, particularly as the previous scheme was tied to Jobkeeper, which is no longer in operation.

Here are a few of the things we do know:

  1. The scheme will be available to tenants with a turnover of less than $50M and have shown a 30% downturn in trade due to the coronavirus. We do not yet have details on how these thresholds will be defined and tested in the legislation.
  2. The proposed legislation will keep the requirement that landlords provide rent relief proportionate the tenant’s downturn in trade compared to pre-pandemic levels, at least half of which is by way of waiver and the remainder deferred.
  3. Mediation will be available.
  4. New legislation will give effect to the new/revived scheme, which will apply from today (28 July 2021).
  5. There will be an $80M hardship fund for landlords who provide rent relief. We do not have any details on this fund yet.

For those looking for a more detailed discussion of the ‘knowns‘ and ‘unknowns‘, have a look at the excellent post from Eastern Bridge Lawyers here: https://www.easternbridge.com.au/post/new-rent-relief-regime

As usual, I will post any information as soon to this log as it comes to hand.

About Sam Hopper

Sam is a property and insolvency barrister.

View all posts by Sam Hopper

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

2 Comments on “A new rent relief scheme has been announced”

  1. Peter Lowenstern Says:

    Parliament resumes on 3rd August. Both Houses sit on the 3rd to the 5th, then the 17th to the 19th, and on the 31st. If the Bill is ready, the first and second readings could occur between the 3rd and the 5th of the month.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: