Use this link to access the new Victorian Commercial Tenancy Relief Scheme released yesterday.
Unless you have time to trawl through 70 pages of regulations, access the easier to read FAQs on the VSBC website here.
In brief, the new CTRS is similar to earlier schemes. The minimum relief Landlords must provide is the proportional Code formula we are all familiar with. Landlords must offer this if they receive a valid written request and evidence from the Tenant.
There are some key differences, including:
- tight deadlines for relief requests, evidence of turnover and responses;
- multiple turnover comparison tests, including for businesses that opened after 2019;
- mandatory reassessment of turnover; and
- even some financial penalties for non-compliance.
Make no mistake, these are far more detailed and prescriptive then any earlier rent relief regime. The result is complexity and many potential traps for both Tenants and Landlords.
The first deadline is looming. Tenants have until 30 September 2021 to make a valid written request in order to get relief for the full relief period running from 28 July 2021 to 15 January 2022. Requests after this date, will only get relief from the date of the request.
There is a clear push by the Victorian Government to get rent relief arrangements in place quickly. No doubt, the VSBC will be flooded with mediation requests for the rest of the year.
Watch this space for detailed articles and upcoming webinars Steven Milicevic will be conducting.
Please do get in touch if you need assistance.