Commercial Tenancy Relief Scheme Expanded

More Victorian small and medium businesses that have experienced a loss in turnover of more than 30% during periods of COVID restrictions will receive financial relief in the form of proportionate rent reduction. New businesses will also be protected, with special arrangements in place to calculate the turnover for businesses that were not operating in before 1 April 2019.

The new Commercial Tenancy Relief Scheme ( CTRS ) is available for an "eligible lease", which includes a retail or non-retail commercial lease or licence that was in effect on 28 July 2021 under which the tenant (which includes licensees) is an operator of a small to medium businesses (with annual turnover of less than $50 million) and is eligible under the scheme.

Broadly, this makes it a requirement for commercial landlords to provide proportional rent relief in line with a business's reduction in turnover, by landlords providing at least half of any sum of rent relief by a waiver .

What eligibility rule has been expanded?

The Commercial Tenancy Relief Scheme ( CTRS ) was reintroduced in July 2021 to ease pressure by providing rent relief for eligible tenants. The CTRS rent relief program applies from the announcement date on 28 July 2021 and will continue until 15 January 2022 .

Under the original eligibility requirements of the CTRS, businesses (including sole traders) had to prove they had lost significant revenue by comparing the final quarter of FY2020-21 to the final quarter of FY2018-19.

Now, more businesses should now be eligible for rent relief under recent changes to expand the eligibility requirements for tenants. For tenant businesses which started trading before 1 April 2019, tenants are now allowed to choose any three consecutive months between 1 April and 30 September 2021 , and then compare this amount to the income for the corresponding period between 1 April and 30 September 2019.

For other tenant businesses which started trading after 1 April 2019, it is necessary for the business to use different comparison periods, these have been summarised in the CTRS Comparison and turnover periods table – click here.

What rent relief will be provided to eligible tenants?

Landlords will be required to provide rent relief to eligible tenants which is proportionate to the tenant's decline in turnover, to be adjusted throughout the CTRS in line with the tenant's turnover.
At least 50% of any rent relief provided to tenants must be in the form of a rent waiver and the other 50% of the rent relief must by way of a rent deferral .
There will be a freeze on rent increases until 15 January 2022.
Landlords are prevented from evicting eligible tenants without a determination from the Victorian Small Business Commission, and both parties can access free mediation services (explained below).

For eligible tenants under the new CTRS where there is also a rent relief agreement in place pursuant to the first release of the CTRS scheme (in May 2020), existing deferred rent repayment requirements will be 'frozen' until 15 January 2022, when the outstanding amount will be added to the deferred rent which accrues during the new CTRS. In the event a dispute arises between the landlord and a tenant, the parties will be able to refer the dispute the VSBC for mediation (explained below).

What transitional arrangements exist between the first release of the CTRS scheme (in May 2020) and the current CTRS scheme?

Many tenants and landlords will have agreements or arrangements in place that were negotiated under the first release of the CTRS scheme from May 2020. Tenants should continue to make genuine efforts to pay their rent as previously negotiated.

We must note that if a business was eligible for the first release of the CTRS scheme (in May 2020), the tenant is not automatically eligible for the current CTRS scheme and must request rent relief again under the new rules from their landlord. Tenants and landlords are encouraged to enter negotiations as soon as possible.

Where a compliant request for rent relief has been made under the first release of the CTRS scheme (in May 2020) and where there is also an agreement already in place, the existing deferred rent repayments are frozen until 15 January 2022. At this time, the tenant must resume repaying the previously deferred rent in the same instalments and frequency as previously deferred..

What mediation services are available under the CTRS scheme?

Tenants and landlords will be encouraged to enter negotiations directly, with the Victorian Small Business Commission ( VSBC ) available to provide mediation if parties cannot reach satisfactory agreement.

A tenant and landlord must negotiate 'in good faith' to reach an agreement that they are both happy with. There is no cost to small business tenants or their landlords for mediation to help resolve a dispute over rent relief. If a landlord and tenant reach agreement at mediation, they can sign binding Terms of Settlement.

Tenants and landlords can contact the VSBC on 13 87 22 or applications can be made through the Victorian Small Business Commission website .

If a small business tenant or landlord has already submitted a mediation application to the VSBC for help to resolve a dispute over rent relief and now wants to request further rent relief, the tenant or landlord should contact the VSBC dispute resolution officer managing their dispute matter to find out what further information they might need to provide.

If mediation fails to resolve a dispute over rent relief, the VSBC can issue a certificate stating that mediation has failed. The landlord or tenant may then be able to file an application with Victorian Civil and Administrative Tribunal ( VCAT ) ( click here) to ask for a rent relief order..

What supports are available to a landlord who provides rent relief to their tenant?

A $120 million package to support landlords who provide rent relief to their commercial tenants was announced on 5 August 2021. The package is made up of a $20 million Commercial Landlord Hardship Fund and $100 million to support land tax relief of up to 25 per cent for landlords who support their tenants.

Details of the Commercial Landlord Hardship Fund have not been released at this time, however the details should be provided soon on the Business Victoria website.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Practice Update – November 2026

November 4, 2026

ATO to continue accepting credit cards until 30 June 2027, but the clock it still ticking Last month, in our Practice Update for October 2026 ( see here ), we noted the Australian Tax Office ( ATO ) announced it will stop accepting credit cards as a payment method after 30 November 2026, following the Reserve Bank of Australia’s ( RBA ) ban on card surcharges from 1 October 2026. The ATO has since confirmed that it will continue to accept credit card payments for tax obligations until 30 June 2027 . After 30 June 2027, taxpayers who wish to continue using a credit card to meet their tax obligations may continue to use third-party payment providers as outlined at www.ato.gov.au/howtopay What do these change mean for you? The extension does not cancel the planned withdrawal of direct credit card payments. From 1 July 2027, you will need to use another method to pay the ATO directly. Available alternatives include: Debit card BPAY Bank transfer Direct debit Payment at Australia Post (where available) International money transfer services (where applicable) Some third-party payment providers may continue to offer ways to pay tax using a credit card after the deadline. However, these services may charge additional fees and take longer to process payments. Check the total cost, processing time and payment conditions before relying on one. Why does your payment method matter? Credit cards can help bridge short-term cash-flow gaps, but the convenience comes at a cost. Interest, annual fees and other charges can erode the benefit, particularly if you regularly carry a balance. There is also a risk that a payment will not be processed in time, potentially leaving you with an overdue tax liability and additional interest. Switching to BPAY, bank transfer or direct debit may provide a simpler and more predictable way to manage tax payments. The right option will depend on your circumstances, including when funds are available in your business account and whether you need to retain flexibility over payment dates. Pay particular attention if you have an existing ATO payment plan linked to a credit card. The ATO has been contacting affected taxpayers, but you should check your own arrangements rather than assume they will continue unchanged. Confirm how future instalments will be paid and allow enough time to update the payment method before the deadline. What should you do now? Use the extended timeframe to prepare rather than leaving the change until the last minute. Review your current arrangements. Check whether you use a credit card for one-off tax payments, regular instalments or an ATO payment plan. Choose an alternative. Consider which payment method best suits your cash-flow cycle, taking account of fees and processing times. Update recurring payments early. Make sure any new arrangements are in place well before 30 June 2027 and check that payments are processed successfully. Review your cash flow. If you rely on the credit card interest-free period to manage tax liabilities, consider whether you need to set aside funds earlier or adjust your payment planning. Seek advice if needed. If tax payments are putting pressure on your cash flow, speak with us early so we can help you review your position and consider practical ways to manage upcoming liabilities. The extension to 30 June 2027 gives businesses more time to adjust, but it should not be mistaken for a permanent reprieve. Planning ahead can help you avoid unnecessary fees, missed payments and last-minute disruption when the ATO’s direct credit card facility closes.

Practice Update – October 2026

October 7, 2026

ATO to stop accepting credit cards as payment method after 30 November 2026 The Australian Tax Office ( ATO ) has announced it will stop accepting credit cards as a payment method after 30 November 2026. The move follows after the Reserve Bank of Australia’s ( RBA ) Review of Merchant Card Payment Costs and Surcharging, where the RBA concluded that “it is in the public interest” to scrap surcharging for all designated card networks from 1 October 2026 (including EFTPOS, Mastercard, and Visa). It said that as a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community. The ATO recognises that some taxpayers currently rely on credit card payments to manage their tax payments and understands this change may require some adjustments. The ATO is writing directly to those who currently have a payment plan linked to a credit card to explain the changes and outlining the steps they need to take. There are alternative payment options available for taxpayers, including direct deposit, direct debit from a debit card, direct debit from an Australian cheque or savings account, Government EasyPay, in person at Australia Post, by mail, or international money remitter. The ATO said it is committed to helping taxpayers transition to alternative payment methods and will continue to support those experiencing financial hardship or other circumstances that make it difficult to meet their obligations. Alternative payment options for taxpayers are outlined at www.ato.gov.au/howtopay Taxpayers who need extra support are encouraged to visit www.ato.gov.au/supporttolodgeandpay , contact the ATO on 13 11 42 during business hours or speak with their registered tax professional.

Tax Alert - Draft legislation offers alternative to restructuring and avoid the 30% minimum trust tax

September 4, 2026

Yesterday, Treasurer Jim Chalmers released draft legislation to implement the key components of the 30% minimum trust tax on discretionary trusts announced in the Federal Budget during May 2026.