In response to the slow return to normal business conditions as a result of Covid19, the State Government have announced a continuation of the commercial rent relief measures designed to support business for a further two months. The new measures begin from 16th January 2022 and any rent relief provided is applied retrospectively to this start date. To be eligible for any relief, the following needs to apply;
- A commercial lease is required to be in place on 16th January 2022.
- The tenant needs to be a business with annual turnover of less than $10,000,000.
- The business needs to demonstrate a decline in turnover by at least 30% during the month of January 2022 when compared to the month of January 2020. There are alternative periods if either January 2022 or 2020 aren’t a true reflection of trading such as the business didn’t operate in 2020 or was affected by natural disaster.
Similar to the previous announcement, the minimum amount of rental relief businesses can be entitled to is based on the same proportion as the fall in turnover experienced.
- Half of the decline in turnover percentage for the month of January 2022 is required to be offered as rent waiver by the landlord and
- An additional 50% of the decline in turnover percentage can be deferred to be paid from 16th March 2022.
Applications to landlords need to be made in writing with supporting documentation and statutory declarations. If you believe you could be eligible for the rent relief measures our recommendation is to action this as soon as possible, as the measures are slated to be revoked 15th March 2022. Please reach out to us should you have any questions about your specific circumstances.
Contributed by Adam Burgess.