As we published yesterday, the Victorian State Government has announced that the Commercial Tenancy Relief Scheme (“Scheme”) will be extended to 31 December 2020.
As part of this announcement, the Victorian State Government announced much broader land tax relief for landlords and commercial property owners as follows:
1. Landlords who provide eligible tenants with a 50% or more rent waiver for at least 3 months are now entitled to:
- a 50% waiver of the property’s 2020 land tax assessment (currently, only a 25% waiver exists); and
- a payment deferral until 31 March 2021.
Landlords who have previously applied for a 25% waiver and who qualify for the additional land tax relief, will need to make a new application to the State Revenue Office.
2. Eligible small businesses that owner-occupy a commercial property can now also obtain:
- a 25% waiver of the property’s 2020 land tax assessment; and
- a payment deferral until 31 March 2021.
3. A new $60 million hardship scheme to be introduced which will enable eligible small commercial landlords to access up to $3,000 per tenancy.
The above measures are unlikely to go far enough particularly for landlords and owner-occupiers of commercial properties in Melbourne, which is currently enduring the nation’s toughest and longest lockdown.
