More information about the new CTRS …

The Victorian Government has just released another press release about the new CTRS, a copy of which is here: https://www.premier.vic.gov.au/rent-relief-way-commercial-tenants

Highlights include the following:

• new legislation will be introduced today (there is nothing on the Parliamentary website yet);
• landlords and tenants are encouraged to start negotiating as soon as possible;
• rent relief for eligible tenants will be calculated by comparing their turnover for the final quarter of the 2020/21 financial year with turnover from the final quarter of 2018/19;
• tenants will be eligible for the scheme if the drop in turnover is greater than 30 per cent;
• the percentage drop will also determine the amount of initial rent relief available to the tenant;
• eligibility for the scheme will be a one-time test. Businesses which are eligible at the beginning of the scheme will remain eligible throughout, with the proportion of rent relief adjusted in line with their turnover;
• for eligible applications under the new scheme where there is also an agreement already in place from the first Commercial Tenancy Relief Scheme, existing deferred rent repayment requirements will be frozen until 15 January 2022, when the outstanding amount will be added to the deferred rent accrued during the current Scheme;
• the Government will provide landlords wiht land tax relief of up to 25 per cent;
• small landlords who can demonstrate acute hardship will be eligible to apply for payments as part of a $20 million hardship fund; and
• landlords can’t issue an eviction notice for eligible tenants without obtaining a direction from the Victorian Small Business Commission. This exception to the moratorium on evictions is new.

Thanks to Paul Nunan for forwarding the press release to me.

I’ll post details of the legislation as it comes to hand.