08 Feb 2022
1 min read
08 Feb 2022
Here we go again – the Commercial Tenancy Relief Scheme in Victoria has been “extended”until 15 March 2022!
In reality, the Regulations comprising the 2022 Commercial Tenancy Relief Scheme are new, separate and stand-alone Regulations. They are not merely an “extension” of the 2021 Commercial Tenancy Relief Scheme Regulations.
The Commercial Tenancy Relief Scheme Regulations 2022 (CTRS 2022) are, in effect, very similar to the Commercial Tenancy Relief Scheme Regulations 2021 (CTRS 2021). These 2021 Regulations expired on 15 January 2022.
The landlord and the tenant must follow the process set out in Regulation 25 in relation to any rent relief request for the Extended Period.
In calculating the decline in turnover, some exceptions may apply to the general rule if a tenant finds itself under one of the following specific circumstances:
Before a rent relief agreement is made, a tenant is not in breach of any provision of the lease due to non-payment of full rent or outgoings during the rent relief period but only if it continues to pay a portion of the rent due under the lease which is reduced by the same percentage as the tenant’s decline in turnover.
As a tenant, it is important to act quickly and submit a new compliant request for rent relief to the landlord as soon as possible so that the tenant is protected under the prevailing Regulations. If you are in doubt whether you qualify for further relief under CTRS 2022, please contact one of our Commercial lawyers today to discuss your options without further delay.
For a landlord, you still need to respond and provide an offer for relief to the tenant within 14 days after receiving a compliant request along with the evidence required under the CTRS 2022. If you have received a request for relief and are unable to determine if it is compliant, one of our Commercial lawyers can help you with that.
Our lawyers will be able to assist to assess your, or your tenants, eligibility and prepare compliant applications or responses to non-compliant applications.
We can work with landlords who have tenants who may be falling behind in their rent payments and discuss the options available.
If you have any queries or need assistance handling a commercial lease dispute contact our commercial lease lawyers at PCL Lawyers.
We will provide commercially sound legal advice and work with you to achieve a quick and effective result.
Call a lease lawyer on 1300 907 305 or complete an online form.
Disclaimer: This article has been prepared for general information purposes and may not apply to your situation. This information should not be relied upon for legal, tax or accounting advice. Your individual circumstances will alter any legal advice given. The views expressed may not reflect the opinions, views or values of PCL Lawyers and belong solely to the author of the content. © PCL Lawyers Pty Ltd.
If you require legal advice specific to your situation please speak to one of our team members today.
Marilyn Wai is a Senior Associate in the Commercial and Commercial Property Department. Marilyn studied law at Monash University and obtained a Bachelor of Laws and was admitted into practice in...
Chris is an Accredited Commercial Law Specialist and a Partner at PCL Lawyers. Chris has approximately 30 years’ experience in commercial and property law. Chris has extensive expertise in complex...
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