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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FEDERAL BUDGET 2026-27

May 12, 2026

SUMMARY AND FULL COMMENTARY UPDATES

Practice Update – May 2026

May 4, 2026

Special Topic: Payday Super changes apply from 1 July 2026, act now to be prepared! The ATO has issued further guidance on Payday Super changes that apply from 1 July 2026. In particular, the ATO released a ‘Payday Super checklist for Employers’ ( click here ), which is a good summary of the tasks that should be completed before 1 July 2026, and now is the time to act. Understanding ‘qualifying earnings’ From 1 July 2026, employers will calculate super using ‘qualifying earnings’ ( QE ) instead of the current ‘ordinary time earnings’ ( OTE ). For many employers, the new concept of QE is broader than OTE, but it should not change the amount they need to pay for their employees. However, it may require updates to payroll software configuration and reporting. Employers should review and prepare to correctly map pay codes now to meet reporting obligations and ensure readiness when their updated payroll software is available. QE include the following payments: OTE (ie. payments for ordinary hours of work), including certain types of paid leave, allowances, bonuses and lump sum payments. There are no changes to what payments are considered OTE under Payday Super. For a full list of payments which are included within OTE – click here . All commissions paid to an employee. Salary sacrifice amounts that would qualify as QE had they not been sacrificed to superannuation. Earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors paid mainly for their labour. Some payments may fall into more than one category of QE, such as commissions, and those payments are covered only once to the extent of the overlap in categories. The total QE for a pay period is determined by aggregating all qualifying payments made to or for an employee on the relevant day, forming the basis for calculating superannuation guarantee ( SG ) contributions. Each payday, employers will need to report both year-to-date QE and superannuation liability for each employee through Single Touch Payroll ( STP ). Employers should confirm their updated payroll software has this reporting functionality built in. Understanding new timing requirements for super contributions From 1 July, employers are responsible for ensuring that super contributions reach super funds within 7 business days of the relevant payday , calculated on the QE amount. Super funds will have 3 business days (down from 20 days) to allocate or return contributions that cannot be allocated. There is currently no obligation for the Super fund to confirm that an employee contribution has been allocated successfully, however if 3 days have elapsed we can accept that the employee contribution has been processed correctly. A super payment only counts once it is received by the employee’s superannuation fund, not when it is submitted. Submitting on day seven may not allow enough time, and we note there is no extension for rejected payments - so employers must ensure there is enough time to correct any errors and for SG contributions to reach funds within the 7 business days. Understanding importance of testing payroll software before 1 July 2026 Prepare now, review your payroll system readiness, engage with payroll software providers and ensure the functionality for these new changes will be supported. It has been widely suggested that new payroll software functionality is tested and everything is running smoothly before 1 July. Note that super payments for pay cycles in July 2026 may be due before your final quarterly super payment is due on 28 July 2026 (ie. for the June 2026 quarter, being April to June). Contributions received on or before 28 July 2026 will reduce any super owing for the June 2026 quarter first . If there is any remainder, contributions will then be used under Payday Super. If you pay on time for the June 2026 quarter and Payday Super you do not risk incurring penalties. The ATO has provided an example of this issue ( click here ), and explains that if the employer pays the correct amount for the June 2026 quarterly payments and the first Payday Super payment (ie. for the first pay cycle in July, which could be weekly or fortnightly) is paid in full both contributions will be made on time. Understanding cash flow pressure Employers may have multiple super payments due during July 2026, including: super payments for each Payday (after 1 July 2026); plus the final quarterly super payment due 28 July, for June 2026 quarter (ie. April to June). Employers should review their expected pay cycles for July 2026 to understand the impacts of paying super each payday after 1 July 2026. Employers may consider setting aside additional funds to make sure they can meet their obligations. If cashflow permits, employers can pay the June 2026 quarter super on or before the first payday in July (ie. the first pay cycle in July, which could be weekly or fortnightly). If an employer can do this, your business will have: a more seamless changeover to the Payday Super system; and time to correct any rejected payments before the 28 July deadline. We recommend that all employers take actions as soon as possible to be best prepared for the Payday Super changes coming in from 1 July 2026. If you require assistance, please contact your Lowe Lippmann representative.

Practice Update – April 2026

April 12, 2026

Know when a new logbook is required Keeping a car logbook may be required to accurately calculate the business-use percentage of vehicle expenses (ie. fuel, registration, insurance and depreciation) for tax deductions. Taxpayers can keep the same logbook for their car for five years, but there are circumstances where they may need a new one during that period. Relying on a logbook that no longer represents a client's work-related travel may result in them claiming more, or less, than they are entitled to. A new logbook may be required when a taxpayer: moves to a new house or workplace — updating their residential or work address may then be necessary; or has changes to their pattern of use of the car for work purposes — checking that they are still doing the same role and routine may then be necessary. Taxpayers using the logbook method for two or more cars need to keep a logbook for each car and make sure they cover the same period. Clients who purchase a new car during the income year and want to continue relying on their previous car's logbook must make a nomination in writing. The nomination must be made before they lodge their tax return and state: they are replacing their original car with a new car; and the date that nomination takes effect. Taxpayers should remember that, if their employer provides them with a car or they salary sacrifice a car using a novated lease, they are not entitled to claim work-related car expenses using the logbook or cents per kilometre method, as they do not own the car. When claiming car expenses using the logbook method, taxpayers also need to keep various types of other records, including (among other things) odometer records for the start and end of the period they own the car, proof of purchase price, decline in value calculations, and fuel and oil receipts (or records of a reasonable estimate of these expenses based on odometer readings).