The deadline for submitting a rent relief reassessment is fast approaching.
Why should Tenants care?
If they don’t provide the reassessment information by 31 October 2021, Tenant’s will lose the right to waivers of rent that was agreed to from 31 October 2021.
This doesn’t apply in special circumstances, like where the Tenant can’t trade due to sickness or injury, natural disaster or an agreement has been reached with the Landlord.
Which Tenants must provide reassessment information?
Only Tenants that:
- began trading before 1 April 2021;
- made a rent relief request before 30 September 2021; and
- reached a rent relief agreement with the Landlord.
What does the Tenant have to do?
Tenants must provide the Landlord with:
- the turnover for the turnover test period;
- the comparison turnover;
- the change in turnover. (If an alternative comparison turnover method was used in the rent relief request – specify which method was used and use that same method for reassessment); and
- a statutory declaration stating that the tenant is an eligible tenant and that the information provided by the tenant is true to the best of the tenant’s knowledge and belief.
Note, the above calculations are based on the following “reassessment” periods:
- if the Tenant started trading before 1 April 2019 – the quarter ending on 30 September 2019 (comparison period) and the quarter ending on 30 September 2021 (turnover test period); or
- if the Tenant started trading between 1 April 2019 and 30 March 2021, the quarter ending on 30 June 2021 (comparison period) and the quarter ending 30 September 2021 (turnover test period)
It is also a good idea for Tenant’s to provide one of the forms of evidence that was required under the initial rent relief request.
What happens next?
There is nothing to do if there is no change in the percentage decline between the Tenant’s decline in turnover (i.e. in the rent relief request) and the reassessment change in turnover.
If there is a change, then, with effect from 31 October 2021, any part of the rent relief agreement that is based on the tenant’s decline in turnover is deemed to be adjusted.
This is general information only and should not be relied on as legal advice. The Victorian CTRS is complicated and your circumstances can drastically change your legal obligations and options.
Please contact us to discuss your circumstances and to get legal advice.