The Victorian Chamber of Commerce and Industry welcomes today’s announcement by the State Government of a $500 million package to provide some certainty and relief to residential and commercial tenants and landlords impacted by the coronavirus pandemic. Emergency legislation will be brought to the Parliament on Thursday 23 April.
While the current restrictions in place to assist with slowing the spread of COVID-19 are proving effective, they have come at a price for many.
With a large number of businesses left without cashflow, they are unable to pay their rent and their staff, leaving workers without jobs, and in turn struggling to pay their rent at home.
To ease the financial strain, in line with decisions of the National Cabinet to support all parties through COVID-19, reforms to residential and commercial tenancy laws will be made. These include the introduction of a temporary ban on evictions, pausing rental increases for six months, and providing land tax relief for landlords and rent relief for tenants experiencing financial strain.
Further to the implementation of a mandatory code of conduct for commercial tenancies, the Government will legislate so small and medium sized businesses that have an annual turnover of under $50 million and have suffered more than a 30 per cent loss in profit due to the pandemic, are eligible for rental waivers or deferrals.
Tenants and landlords who are unable to come to an agreement will be given access to a dispute resolution service to ensure a fair decision is reached.
The Victorian Chamber has advocated for a cohesive approach to rental assistance as the coronavirus has unfolded.
To be attributed to Victorian Chamber Chief Executive Paul Guerra:
“The State Government’s assistance package has brought together tenants and landlords to forge a collaborative way forward in what is a challenging and unprecedent time for families, businesses and communities.
“This much-needed funding and the considered measures announced by the State Government provide a solid foundation to ensure that all parties can get through to the other side of the coronavirus crisis.
“We have advocated for a coordinated response between governments, landlords and tenants, that establishes clear pathways to ensure all parties involved are working cooperatively – and today’s response really speaks to that.
“Now, more than ever, we need to work together. These measures take into account the bigger picture and life after COVID-19. They are proportionate and work to assist those who have had significant hits to their cashflows.
“Our priority is and always will be for businesses to stay afloat and we are confident these measures will be welcomed by many businesses that are struggling right now.”
