The Victorian government recently announced a series of measures to boost support for residential and commercial landlords and tenants amid a resurgence of coronavirus cases in the state.
One of the most significant changes included in the announcement was the extension of the moratorium on rent evictions and lease increases until the end of the year, which is a welcome relief for cash-strapped residential tenants affected by the COVID-19 crisis.
In addition, commercial landlords will now be required to provide rent relief commensurate with the decline in sales of qualifying tenants.
However, the state government also unveiled several other relief measures, ranging from property tax cuts to support services to help tenants in need. This has led many people to think of applying for grants with more questions than answers.
Here are five of the biggest questions that linger in the minds of many landlords and renters:
1. What exactly were the measures announced?
Besides extending the temporary eviction ban and rent increases, the Victorian government has revealed several relief measures for tenants and landlords. They are:
Increased Rent Allowance Payments from $ 2,000 to $ 3,000 for Qualifying Residential Tenants
Increased property tax reduction from 25% to 50% for eligible homeowners
Offer a 25% reduction in property tax to homeowners with annual sales of less than $ 50 million
Create a business owner support fund, which would pay $ 3,000 per rental for small business owners
Release of $ 600,000 in funding for advocacy groups working with vulnerable tenants
2. Who is entitled to Rent Relief Allowance?
The Rent Relief Grant is for residential tenants in Victoria who are experiencing financial hardship due to the coronavirus pandemic and who have, or soon will have, a bond registered with the Victorian Residential Tenancies Bond Authority .
To be eligible, renters must have registered a reduced rental agreement with Consumer Affairs Victoria (CAV). However, deferring the rent is not considered a rent reduction and meets eligibility criteria, according to the Housing Victoria website. Applicants must also have a weekly household income of no more than $ 1,903 and have less than $ 5,000 in savings, while continuing to pay at least 30% of their income in rent.
There is no requirement for citizenship or permanent residence. Casual workers on vacation and work visas, international students, skilled visa holders, seasonal workers, New Zealand citizens, and all refugee and temporary protection visa holders are eligible for the grant.
Residents of multi-occupancy houses with a shared lease may be eligible for the grant if they are one of the leaseholders of the house and they meet the criteria for ;eligibility. They may be eligible for a subsidy that represents their share of the rent.
3. How can tenants benefit from the $ 3,000 grant?
Applications for the one-time rent relief allowance are open until December 31st. However, requests can only be processed if tenants have reached a voluntary rent reduction agreement with their landlords. Once tenants have filed their new agreements with CAV, they can apply for the grant online through the Victoria government website. Tenants can also complete a mediation process through the ministry.
The grant will go directly to the owner and will be considered a rental payment.
Renters who have already received a grant of $ 2,000 from the previous program may not be entitled to an additional $ 1,000 unless they continue to meet the eligibility criteria.
4. How does the financing of small business owners work?
The Commercial Landlord Hardship Fund or what Business Victoria calls the Fund was created to help small private landlords and co-owners who may not have the financial capacity to grant a reduction in rent. to their tenants. Qualifying homeowners can receive $ 3,000 per rental from the state government to compensate for the financial hardship they are experiencing.
Landlords must have provided the tenant with a reduction of at least 30% of the total rent, half of which or more is in the form of a waiver for the equivalent of a period minimum of three months. They can claim rent exemptions three months before and after the creation of the fund on August 21.
The fund will be open for applications for eight weeks from the launch date or until funds run out, whichever comes first, the Business Victoria website says.
5. Who is entitled to the reduction in property tax?
According to the State Revenue Office website, owners of residential and commercial properties who grant an outright exemption of 50% or more of rent from at least three months of rent to qualifying tenants can apply for a waiver. of 50% of the 2020 property tax of the property and defer payment of the remaining tax to March 31, 2021.
Owner-occupiers of commercial properties can get a 25% exemption from the 2020 property tax on the property and payment of the remaining tax can be deferred until March 31, 2021 if their businesses qualify for the property. one of these two categories:
1. For a pub, club or restaurant licensed under a general, full club license or on site:
At the premises level, annual revenue was no more than $ 50 million in fiscal year 2018-19 or 2019-20
The turnover at these premises has decreased by at least 30% since March
2. For other companies:
The cumulative annual revenue was not more than $ 50 million in fiscal year 2018-2019 or 2019-2020
Eligible and participating in Government JobKeeper payment
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