The Victoria State Government has extended its support to residential tenants and homeowners affected by the COVID-19 epidemic with a $ 500 million relief program, as part of the funding $ 24.5 billion in additional emergency funding announced by the state.
Emergency funding is intended to support efforts to fight the coronavirus, support jobs and accelerate the recovery of Victoria from the pandemic over the next two years.
About $ 80 million from the rescue program will be set aside to help struggling tenants, while the remaining $ 420 million will be spent on property tax cuts for commercial and residential owners.
Homeowners whose tenants are affected by the COVID-19 epidemic will be able to benefit from a 25% discount on their property tax, while any remaining property tax may be deferred until March 2021.
Sarah Megginson, editor of Your Investment Property, told Channel 10 News that this package did not go far enough to help homeowners, who were asked to give up thousands of rental income dollars.
"Everyone is going to have to make sacrifices, but I don't think the owner should have to bear the brunt," said Megginson.
In Victoria, the property tax does not apply to land valued at less than $ 250,000, and Megginson points out that this means that owners of apartments and units may not be required to pay property tax.
Consequently, this measure offers them little relief.
Even if you pay property taxes, the 25% is only a few hundred dollars in most cases. For example, on land valued at $ 750,000 – keeping in mind that this is only the land, not the total value of the property – the amount of property tax is $ 1,750, so the rebate offered is only worth $ 375.
"If the community as a whole asks you to make these kinds of rent reductions, a few hundred dollars in property tax breaks won't make up for much," added Megginson.
How does it work for tenants?
Under this package, tenants could claim emergency payments of up to $ 2,000.
To be eligible, tenants must have registered their revised agreement with Consumer Affairs Victoria or have gone through mediation, have less than $ 5,000 in savings and still pay at least 30% of their income on rent.
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"More than ever, we must work in partnership, the owners working with the tenants and the tenants working with the owners. The government is ready to help those who need it most, "said Victoria's Premier Daniel Andrews.
In addition to the package, the government has also announced that evictions and rent increases will be prohibited for residential and commercial rentals for six months.
The state government urged tenants and landlords to work together to "overcome this crisis".
"Tenants and landlords who have trouble reaching a rental reduction agreement will have access to expedited dispute resolution, with Consumer Affairs Victoria or the Victorian Small Business Commission to secure the conclusion of a deal." "fair deals," said the government. said in a statement.
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