Commercial Tenancy Relief Scheme extended two more months
Lowe Lippmann Chartered Accountants
Commercial Tenancy Relief Scheme extended two more months
The Victorian Government recently announced the Commercial Tenancy Relief Scheme (CTRS) will be extended for another two months ending on 15 March 2022, after the CTRS was originally due to end on 15 January 2022.
This extension has been made to help support small business owners under financial pressure as Victoria continues to respond to the COVID-19 Omicron variant.
While full details of the new regulations for the extended scheme are yet to be released, however the Victorian Government has confirmed the following details will now apply, including:
- The extended scheme will apply to tenants with:
- an annual turnover of $10 million or less (which is down from the original $50 million threshold); and
- at least a 30% decline in turnover.
- The extended scheme will have retrospective operation from 16 January 2022, to ensure that tenants who were already receiving rent relief and remain eligible for relief should experience a gap in support.
- Landlords will be required to keep providing proportional rent relief in line with a reduction in turnover experienced by the tenant, with at least half of that rent relief offered by way of waiver of rent.
- Eligible commercial landlords who provide rent relief under the extended scheme should continue to be supported through the $20 million Commercial Landlord Hardship Fund.
- For tenants with existing agreements repayment of deferred rent, the repayment obligation will be paused until 15 March 2022, giving these businesses more time to repay deferred rent because of the extended scheme.
- The 'freeze' preventing landlords increasing the rent under the lease will continue.
- The eviction moratorium will also be extended, so eligible tenants cannot be evicted without undertaking mediation through the Victorian Small Business Commission (VSBC). While it still needs to be confirmed, tenants who have not yet sought rent relief may still be entitled to apply for CTRS relief, albeit for a limited time of two months.
Regulations for the Scheme will be made shortly and the
VSBC’s website and FAQs will be updated.
Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.
How to manage business day-to-day transactions The ATO has the following tips for small business owners "that can make your tax life easier": They should keep an eye on upcoming expenses, and regularly update their books and reconcile their accounts. They should set aside the GST they collect (ie. by transferring it into another bank account within the business to keep it separate from their cash flow). They can also set their PAYG withholding and super aside, so they will have the funds available when payments are due. They should plan ahead and schedule time in their calendar to prepare their business activity statement ( BAS ), and lodge and pay their BAS on time. If you need assistance with any of these issues, please contact our office.
ATO's new focus for small business The ATO is currently focusing on the following 'specific risk areas', where it is concerned "small businesses are getting it wrong": Contractors omitting income — with a focus on data matching to ensure all income is reported. Quarterly to monthly BAS reporting for GST purposes — The ATO will move around 3,500 small businesses with a history of non-compliance to monthly reporting from 1 April 2025. Small business boost claims — with a focus on encouraging self-amendments to correct errors and omissions. The ATO will also continue its focus on non-commercial business losses, small business capital gains tax ( CGT ) concessions, business income that is not personal income, incorrect claims for 'small business boosts', GST registration and income of taxi, limousine and ride-sourcing services.
Bill passed for Instant Asset Write-Off of $20,000 for 2024-25 There was no mention of the extension of the instant asset write-off ( IAWO ) within the Federal Budget delivered last Tuesday night, leaving many small business taxpayers frustrated and uncertain. However, the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2025 has now been passed through the Parliament, and it included the extension of the IAWO threshold of $20,000 for assets first used or installed ready for use between 1 July 2024 and 30 June 2025. After the Bill has now been passed by both the House of Representatives and the Senate, it now simply waits to receive Royal assent.
