Coronavirus NSW: Safeguard for renters hit hard by pandemic
Residential tenants who lose more than a quarter of their income due to COVID-19 will be protected from automatic eviction if they cannot make up the rent, as part of a series of measures announced by the state government today.
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Residential tenants who lose more than a quarter of their income due to COVID-19 will be protected from automatic eviction if they cannot make up the rent, as part of a series of measures announced by the state government today.
As part of the package, Treasurer Dominic Perrottet announced $440 million in land tax relief for landlords who pass savings onto renters doing it tough.
The rental relief package includes:
■ A 25% rebate on land tax for landlords that lower rent for tenants in hardship by more than a quarter. Six month land tax deferral for the next three months for those who haven’t yet paid their bill.
■Mandatory negotiation process between tenants and landlords for rent relief. If parties cannot agree, they must go to the tribunal.
■ A six month moratorium on forced evictions for tenants in arrears as a result of COVID-19.
■A 60-day stop on termination notices by landlords to tenants.
■ $2.3 million to the Tenants Union of NSW.
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Writing in The Daily Telegraph today, Mr Perrottet said the land tax relief would “support tenants struggling to pay the rent, and landlords whose incomes are affected”.
Landlords will be eligible for a land tax waiver or rebate of up to 25 per cent if they reduce rent for tenants who have taken a financial hit from the coronavirus.
The $440 million in land tax relief is part of a series of state government measures to enact a national code of conduct announced by the Prime Minister last month, which included a six month stay on evictions for both rental and commercial tenancies.
For commercial renters, the measures would apply to businesses with a turnover of less than $50 million that have revenue fall by at least 30 per cent due to COVID-19.
Landlords must offer tenants rent relief proportionate to the loss in turnover.
In his column, Mr Perrottet says the code of conduct ensures the financial impact of COVID-19 is met by everybody.
“The outcome depends on everyone shouldering some of the burden — governments, banks, landlords, tenants and taxpayers. And it remains critical — and obligatory — for those who still can pay rent to keep doing so,” he said.
As part of state government measures to protect household renters, landlords and tenants will be required to enter into negotiations before seeking a forced end to a tenancy.
The state government will also seek to minimise renters moving house by increasing the notice periods for ending a fixed term tenancy, or for evictions not related to financial distress.
Under the new rules, landlords will also have to provide 90 days notice before ending a fixed term agreement at the end of the tenancy.
Better Regulation Minister Kevin Anderson said landlords and tenants should reach a compromise.