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The Commercial Landlord Hardship Fund 3 is now open for application!

New Release

Eligible small commercial landlords can apply for a grant of up to $6.000 per eligible tenant. For landlords who are experiencing acute hardship because of the rent waiver agreed with their tenant(s), the grant may be increased to a maximum of $10,000 per eligible tenancy.

 

The link to apply can be found below:

https://business.vic.gov.au/grants-and-programs/commercial-landlord-hardship-fund-3

 

Applications to the Commercial Landlord Hardship Fund 3 will open on 13 September 2021 and close at 11:59 pm on 15 January 2022, or until funds are exhausted.

commercial building in Victoria

01

Small commercial landlords who meet the following eligibility criteria can apply for the grant:

1

Be an owner and landlord of the property for which an application is made;

2

Be a landlord that has made a rent relief agreement with their tenant(s) under the new Commercial Tenancy Relief Scheme in operation between 28 July 2021 and 15 January 2022;

3

Be a landlord with total taxable landholdings of less than $3 million, including residential and commercial property and part holdings but excluding principal place of residence;

4

Be an Australian citizen, resident, or Australian incorporated entity;

5

Commercial rent represents more than 50 percent of their total gross annual income for the 2019-20 financial year;

6

Hold the written consent of the tenant(s) to provide business and contact details.

02

Landlords who wish to apply for acute hardship consideration must provide further evidence in addition to the above criteria:

1

Relevant Municipal Rates Notice or Land Tax Assessment Notice to confirm the property location and land value;

2

A copy of the lease agreement;

3

Rent relief agreement;

4

Proof of Identity; and

5

A letter from a qualified agent (qualified accountant) using the template provided at the Business Victoria website that including confirmation:

Note

The amount of the grant will be equal to the amount of the rent waiver provided to the tenant(s) between 28 July 2021 and 15 January 2022, to a maximum of $6,000 per eligible tenancy. The grant will be increased to a maximum of $10,000 per eligible tenancy for landlords that demonstrate acute financial hardship.

Illustrate

Pursuant to a rent relief agreement, a landlord waived a total of $4,125 of rent for the period between 28 July 2021 and 15 January 2022, then the amount of grant the landlord can receive is $4,125. However, if the landlord gives the tenant a total of $7,000 in rent abatement, the maximum amount of grant the landlord can receive is capped at $6,000 unless the landlord applies for an acute hardship grant.

Further, this grant can only be used to offset the corresponding rent waiver granted to the tenant and can only be paid into an Australian bank account.

Please note that the information provided by the landlord when submitting the application will be verified by other government agencies (e.g. State Revenue Office). Moreover, Applicants may be subject to audit by the Victorian Government or its representatives for a period of seven years after the grant has been approved. Under audit, applicants will be required to show evidence of hardship, such as income tax assessment. Landlords who are found to have provided any false or misleading information in their application will be required to repay all grants received.

Conclusion

If you have any questions or need assistance with the commercial landlord hardship fund 3 or rent relief applications, please feel free to contact us. Our professional solicitor will endeavour to help you and solve your problems.

Disclaimer

This article is only a general guide and does not apply to readers’ individual cases. Based on the information provided, readers should not make any legal decisions without seeking professional legal advice from an Australian Legal Practitioner. Fumens Lawyers hereby declares that readers who refer to this article do not constitute a lawyer-client relationship with our firm, therefore, Fumens Lawyers will not be liable for any losses caused as a result of relying on the information contained within this article.

 

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