Call for rent relief for struggling Victorian businesses

As struggling businesses count the cost of the state’s fifth lockdown, lobby groups believe this idea could be an instant relief.

The state opposition has demanded immediate rent relief measures to support small business recover from Victoria’s unprecedented fifth lockdown.

It comes as the Herald Sun can reveal the state government is set to unveil another round of support for businesses.

Opposition leader Michael O’Brien said critical support was needed for thousands of businesses unable to open during the latest lockdown but still required to pay rent.

“Tens-of-thousands of small businesses across the state are paying full price for rent, just to put a padlock on their front door,” he said.

“For many small businesses, rent can be the single largest expense yet week after week, Labor has left these businesses fending for themselves.

“The Liberal Nationals are calling for the immediate reintroduction of rental supports for small businesses, so local cafes, florists, barbers and gyms are there for our community on the other side.”

Mr O’Brien said only a fraction of Victoria’s businesses were eligible for the state government’s “measly” Business Costs Assistance program.

Manager of Lux Foundry in Brunswick, Ben-Ari Collins says lockdowns has hit the business hard. Picture: Tony Gough

Last week almost 90,000 businesses received automatic payments to compensate them for Lockdown 5 are previously being found eligible for support.

But thousands of other businesses had been denied any state government financial support.

Lord Mayor Sally Capp said business support would be vital to Melbourne’s recovery.

“The impact of lockdowns is devastating and many businesses are on the brink. Decisions to stay open or close permanently are being made daily,” she said.

“Businesses desperately need confidence around how they will be asked to operate when we open back up and ongoing financial support to survive the restrictions and the lag affect.

“JobKeeper needs to be reinstated by the Federal Government, more cash grants need to be provided by the Victorian Government and we need as much information, as early as possible, for businesses to make their reopening plans.

Ms Capp also called for a clear roadmap outlining the state’s reopening, and detailing what rules will be in place for how long.

Lux Foundry Café Manager Ben-Ari Collins said rent relief would make it easier to “stay afloat”.

“Any support is better than none, but the support doesn’t make a dent compared to the losses,” Mr Collins said.

“I’ve lost count of how many functions have been cancelled, not to mention all the people who are too scared to book.”

Opposition leader Michael O’Brien said critical support was needed for thousands of businesses. Picture: NCA NewsWire / Andrew Henshaw

The Brunswick cafe can seat 120 people and host even more for functions, but has been operating as takeaway only during lockdown.

Mr Collins said full rent compensation would be “ideal” but will “take anything”.

“We’re very lucky we will be able to reopen for dine-in, but there are so many businesses who won’t,” Mr Collins said.

“It’s going to be a long road to get back to full capacity.”

Jennifer Lee, co-owner of the Brighton Savoy, said ongoing venue limits meant her business could not trade profitably.

“Additionally it kills consumer confidence and contributes to perpetuating a climate of fear,” she said.

Small Business Australia executive director Bill Lang called on the ‘Business Saver’ package for impacted industries.

“The Premier may well declare Victoria ‘open’ but for many businesses the restrictions will mean they may as well remain closed – for many they will lose more money when they open,” he said.

“When you operate at 25 per cent capacity, you still need to meet 100 per cent of costs of staff, rents, utilities, stock and other running costs, which is why our small business families need continued assistance.

“This is assistance that addresses these running costs, not small payments that meet only a fraction of operating – this is needed until vaccination rates reach a point where lockdowns and heavy restrictions are no longer part of the Covid strategy.”