After a tough year for many of our members, the Victorian Government has introduced new regulations under the Commercial Tenancy Relief Scheme to support small and family businesses experiencing financial hardship due to the latest wave of the COVID-19 pandemic. 

Strong demand for new homes, coupled with COVID-19 restrictions and lockdowns, have seen many of our members struggling to obtain key building materials.  

Many products such as timber have also increased in price, making it hard for builders to turn a profit. 

In some welcome news, eligible commercial tenants with an annual turnover of $10 million or less who have suffered a decline in turnover of at least 30 per cent due to COVID-19 will be able to access the scheme.  

The new regulations operate from 16 January 2022 and run until 15 March 2022. 

Commercial tenants need to demonstrate their decline in turnover by comparing January 2022 to January 2020.  

Landlords will be required to provide proportional rent relief to their commercial tenants in line with reduced turnover.  

For example, a business with a turnover of 40 per cent of pre-pandemic levels could only be charged 40 per cent of its rent. 

Of the balance, at least half the rent must be waived, with the remainder deferred.  

The freeze on rent increases will continue. 

Most landlords and tenants will negotiate in good faith to reach an agreement.  

Full details of the scheme, including eligibility, are available on the Victorian Small Business Commission website at vsbc.vic.gov.au

For further information or assistance, members are encouraged to contact MBV Assist Team on 03 9411 4555.