As things get tough for both tenants and landlords due to the substantial slide in business activity over the last month, the Victorian Government will bring urgent legislation to the Parliament in line with decisions of the National Cabinet to reform residential and commercial tenancy laws.
The Stage 3 restrictions designed to help slow the spread of COVID-19 have had widespread economic consequences, leaving many businesses with no cash flow to pay their rent, and many workers without jobs.
To encourage landlords to do the right thing by their tenants, the government will provide $420 million in land tax relief. If a landlord provides tenants impacted by COVID-19 with rent relief, they will be eligible for a 25 percent discount on their land tax, while any remaining land tax can be deferred until March 2021.
To provide much needed peace of mind and security, evictions will be banned for residential tenancies for six months, except in some circumstances. Evictions will also be banned for six months for the non-payment of rent for commercial tenancies involving small and medium-sized businesses. Rental increases will also be banned for commercial and residential properties for the same period.
The government will also create an $80 million rental assistance fund for renters facing hardship due to COVID-19. To be eligible, renters will need to have registered their revised agreement with Consumer Affairs Victoria or gone through mediation, have less than $5,000 in savings and still be paying at least 30 percent of their income in rent.
