Coronavirus: Victoria’s $500m relief package for tenants and landlords

The Victorian government has announced a $500m relief package for residential and commercial renters and landlords.

Victorian Premier Daniel Andrews. Picture: AAP

The Victorian government has announced a $500m relief package for residential and commercial renters and landlords, following similar moves in Queensland and NSW earlier this week.

The move comes after the ­national cabinet earlier this month agreed to a temporary ban on evictions, as well as a pause on rental increases, for six months.

Victoria’s package, which is set to be legislated at an emergency sitting of state parliament next Thursday, will include $420m in land tax relief to encourage landlords to give struggling tenants a rental discount.

Another $80m will be available to help renters experiencing financial hardship as a result of the economic crisis brought on by the coronavirus pandemic.

If a landlord provides tenants impacted by coronavirus with rent relief, they will be eligible for a 25 per cent discount on their land tax, while any remaining land tax can be deferred until March 2021.

Businesses with annual turnover under $50m that have experienced more than a 30 per cent reduction in turnover due to the coronavirus will also be eligible for rental waivers or deferrals under the legislation to go before the Victorian parliament next week.

Residential renters seeking ­assistance through the Andrews government’s new fund will need to have registered a revised rental agreement with Consumer Affairs Victoria or gone through medi­ation with their landlord, have less than $5000 in savings and still be paying at least 30 per cent of their income in rent.

As agreed by national cabinet, the new measures will be backdated to come into effect from March 29 for six months.

Queensland property owners are meanwhile up in arms over the Palaszczuk government’s moves to protect residential tenants from eviction during the COVID-19 pandemic, saying they will be ­denied rental income forever under the scheme.

While all states are introducing packages to protect tenants, ­industry groups say key ­diff­erences in the Queensland scheme will mean that tenants will be able to have their rent ­payments waived altogether, ­rather than just deferred.

The Real Estate Institute of Queensland is also calling for a minimum income reduction threshold for tenants to meet before they qualify for the protection measures — such as the 25 per cent income reduction in NSW, and 30 per cent in Victoria.

REIQ chief executive Antonia Mercorella said while the institute supported measures to protect renters, “we are fundamentally ­opposed to some of the proposed measures”.

In an open letter to Queensland landlords, she said they would ultimately foot the bill for the package because tenants would not have to pay back rent or prove ­financial hardship.

The REIQ has launched a campaign against the changes, which are due to be passed by state parliament next Wednesday.

Housing Minister Mick de Brenni denied the package granted a “blanket rent waiver”.

“Just like every other state, Queensland has provided guidelines for property owners and ­tenants to renegotiate rental agreements for a short term, while its needed,” he said.