COVID-19: How is the government helping Victorian commercial property tenants and landlords?
Victorian commercial property tenants and landlords have been impacted dramatically by the coronavirus, with businesses hit hard through lockdowns and a subsequent loss of trade.
So what support is available for Victorian tenants and landlords who find themselves caught up in the coronavirus downturn?
In addition to the Federal Government’s stimulus package, which includes the JobKeeper and JobSeeker payments and new mandatory code for commercial property tenancies, the Victorian Government has confirmed measures to assist local businesses and property owners in weathering the current challenges.
COMMERCIAL PROPERTY LAND TAX RELIEF
Victorian Premier Daniel Andrews announced a $500 million rental relief package to support virus-hit tenants and landlords across both the commercial and residential property sectors.
MORE: LATEST CORONAVIRUS COMMERCIAL PROPERTY NEWS
The largest portion of that funding – $420 million – will be put towards delivering land tax relief to landlords who help their tenants with rental discounts or concessions.
Commercial property landlords whose turnover does not exceed $50 million, who are eligible for the Federal Government’s JobKeeper program and who are suffering financial stress and hardship can access a 25% discount on their land tax if they provide relief to their tenants, with any remaining land tax able to be deferred until March next year.
BAN ON EVICTIONS
The Victorian Government is this week expected to legislate to confirm a ban on commercial property evictions for the next six months.
While the National Cabinet agreed on the moratorium late last month, the rule is the responsibility of each state to enact and enforce individually, and will be confirmed at a special Victorian Parliament sitting on Thursday.
Under the rules, landlords will be unable to evict a tenant who is facing financial hardship, with both parties instead encouraged to work together and come to an arrangement that works for both.
It also includes a rental freeze
DISPUTE RESOLUTION
Inevitably, some landlords and tenants may not be able to reach an amicable resolution, so the Victorian Government is fast-tracking a dispute resolution process that will be mediated by Consumer Affairs Victoria or the Victorian Small Business Commission.
BUSINESS SUPPORT FUND
As part of the Victorian Government’s stimulus, businesses can apply for a $10,000 grant to help them remain afloat and keep staff employed.
Businesses can apply if they have been forced to close or have been heavily impacted by restrictions announced by the Chief Health Officer, if they employ people, have a turnover of more than $75,000 and have payroll of less than $650,000.
It is available to businesses in the hardest-hit sectors and industries, including accommodation and food services, arts and entertainment, health and beauty, sport and recreation, tourism and retail.
