The COVID-19 pandemic has hit the economy hard and the number of Australians laid off or laid off has reached hundreds of thousands. Fortunately, tenants anxious to meet their housing expenses in these difficult times have several options.
Workers across Australia have been hit hard by the economic impact of the COVID-19 pandemic. As social distancing measures have been imposed, many workers have been made redundant or have their hours reduced, which has significantly reduced their earnings. Without a stable source of livelihood, paying daily expenses – including rent – has become a struggle for many Australians.
Prime Minister Scott Morrison's announcement of a six-month moratorium on evictions last March was good news for tenants in financial difficulty. But without consistent national guidelines on how it will be implemented, states and territories have the responsibility to define the details.
This has created confusion among residential tenants and their landlords, as they now face different sets of laws and financial support depending on where they live.
Recently, Your Investment Property listed the various contingency plans that states and territories have adopted in support of homeowners. Here's how different jurisdictions offer support to tenants.
New South Wales
Half of NSW's $ 440 million relief program has been allocated to residential tenants and landlords. The package aims to keep tenants in their residences for the next six months.
In mid-April, the government also imposed a 60-day moratorium on new applications for forced eviction due to rent arrears if someone in the house experienced financial hardship by reason for the epidemic, which means that there has been a reduction of 25% or more in household income.
Legislation for a six-month restriction on evictions followed shortly, with the state government insisting that landlords enter into negotiations with tenants who are struggling to pay rents.
Dispute resolution can also be provided by NSW Fair Trading. Unpaid rent accumulates as arrears during the six month period, but tenants will not be blacklisted.
Queensland
Queensland has introduced a six-month moratorium on evictions due to rent arrears caused by the COVID-19 pandemic. Landlords are also prohibited from evicting a tenant if their lease expires during the crisis.
The state government will also make one-time payments of up to four weeks' rent, up to $ 2,000, for tenants who do not have access or are not eligible for other financial assistance plans. Assistance will also be provided to tenants with savings of $ 10,000 or less.
Victoria
Evictions and rent increases in residential housing have been prohibited in Victoria for six months.
The state government has also released an $ 80 million aid fund dedicated only to struggling tenants. Tenants can apply for grants of up to $ 2,000, provided they have gone through mediation or have registered their revised agreement with their landlords, and have less than $ 5,000 in savings. However, tenants must still pay at least 30% of their income in rent.
Western Australia
After introducing legislation for a six-month moratorium on evictions and the freezing of rent increases, the AO government released a $ 30 million rescue program to support tenants during the crisis.
Housing assistance grants, which are equivalent to four weeks' rent up to a maximum of $ 2,000, will be paid directly to the owners. The amount will be provided in addition to rent reductions negotiated between tenants and owners.
To be eligible, tenants would have had to lose their jobs, apply for income support at Centrelink, have less than $ 10,000 in savings and pay at least 25% of their income on rent.
South Australia
South Australia has legislated a six-month moratorium on eviction for non-payment of rent due to financial hardship and a ban on rent increases. In addition, tenants cannot be blacklisted due to the circumstances caused by the pandemic.
The government has also released a $ 50 million tax relief program for residential and commercial owners, modeled on similar packages in New South Wales and Victoria.
As part of the emergency program, owners will be offered a 25% reduction on their 2019-2020 property tax liability on affected properties, but would be required to fully pass on the benefits of the property. tax relief for their tenants affected by COVID-19 restrictions
Tasmania
Tenants who lost their jobs due to the COVID-19 pandemic cannot be evicted for non-payment of rent until June 30. The state government will review this measure after 90 days and may decide to extend it.
Australian Capital Territory
The ACT government has decreed a six-month moratorium on evictions and rent increases, as well as preventing blacklisting of tenants unable to pay rent due to the crisis .
Tenants and landlords are encouraged to make an agreement to delay rental payments if a tenant does not earn income. Any unpaid rent during the moratorium period will be considered as a debt by the tenants to their landlords but should be free of interest.
Northern Territory
The government of the NT has opted against a moratorium on evictions and has instead implemented an extension of the negotiation and notice periods between tenants and owners.
Under the measure, tenants having difficulty paying their rent benefit from an extension of up to 60 days from the current 14-day period to negotiate conditions with their owners. Once the extension is completed and the owner and the tenant cannot reach an agreement, a notice period of up to 60 days, increased by the current 14 days, may be imposed by the owner.
