New Covid-19 rental legislations – a state by state guide

NSW

For tenants:

NSW has legislated an interim 60-day stop on landlords seeking to evict tenants due to rental arrears as a result of COVID-19. For the applicable tenants, this means that eviction notices regarding financial disadvantage by COVID-19 are postponed. During this time, tenants are given time to apply for Government financial support and for tenant-landlord negotiations to occur. Landlords are encouraged to negotiate with their tenants, and can only provide a termination notice after the interim 60 days if it is deemed reasonable. Any tenants who believe they are impacted by COVID-19 should contact their landlord immediately to reach an agreement. Fair trading will be able to assist during this agreement period.

To meet the requirement for 60 day stop on evictions, a household needs to demonstrate their financial hardship by COVID-19:

1. Rent-paying members experiencing a 25% reduction of household income due to COVID-19 related outcomes including individuals who have stopped or have reduced hours due to COVID-19 closures.
2. Rent-paying members who have reduced hours worked due to carer responsibilities as a result of COVID-19

In addition, landlords are still able to use the usual termination process for tenants who are not paying rent for reasons other than COVID-19 but will require a 90 day notice when ending fixed term agreements, periodic agreements and tenancy as a result of a breach in agreement other than non-payment of rent, property damage, illegal activities etc). 

For landlords:

Land tax relief is also available for eligible NSW landlords, allowing those eligible the ability to pay 25% less on 2020 land tax with a three-month deferral available for outstanding land tax payments. For eligibility:

1. The landlord must have already reduced the rent by at least as the tax reduction for any period between 1st April and 30th September 2020
2. Have a tenant who is suffering from financial distress as a result of COVID-19
3. Ensure land tax is directly related to the property which rent has been reduced

More information and application details can be found here.

Victoria

For tenants:

Victoria has legislated a Rent Relief Package providing one off grant payments of up to $2,000 (or 4 weeks rent, whichever is less) for tenants experiencing rental hardship due to COVID-19. This payment is directly paid to agents or landlords to contribute to the continual rental payments, under a new rental agreement. 

To meet the grant requirement in Victoria, the tenant must meet the following to qualify:

1. Are currently paying at least 30% of income in rent
2. Have a household income of less than $1,903 per week
3. Have less than $5,000 total in cash or savings
4. Registered for a revised rental agreement with CAV or gone through mediation

A new rent agreement must be lodged with the CAV. Supporting documents such as payslips, bank statements, letters from employer or records supporting reduced pay may be required. For more information on eligibility visit CAV rental relief.

For landlords:

A 25% reduction in land tax is also available to eligible Victorian landlords. Qualification for this assistance is classified as the following:

1. Landlords to have a tenant financially impacted by COVID-19
2. Landlords who are unable to secure a tenant due to COVID-19
3. Landlord and tenant must have agreed to a reduction in rent
4. Pass on the equivalent amount of land tax reduction to rent relief for your tenant. 

For more information or applying for land tax relief in Victoria, visit here. 

WA

For Tenants: 

The Western Australian State Government is making $30 million available for grants up to $2,000 (or 4 weeks rent, whichever is less) for residential tenants who have lost their jobs and are facing financial hardship due to the COVID-19 pandemic. 

WA’s one-off payment of up to 4 weeks rent is eligible for tenants who:

1. Have lost their job after 20 March
2. Have an approved or lodged an application with Centrelink to receive income support
3. Have less than $10,000 total in cash and savings
4. Are currently paying rent at least 25% of the total household income
5. Have lodged revised agreement with Consumer Protection WA
6. Have agreed to a reduction in rent with landlords or engaged in dispute resolution service.

To apply, applications can be lodged via CCP.

For Landlords:

Landlords in Western Australia will no longer incur a land tax deferral penalty fee if the given taxpayer is impacted by COVID-19.

1. From March 23rd, the commission has remitted late payment penalty in full if the taxpayer has been directly or indirectly financially affected by COVID-19.

To check if this is available to you visit here.

Queensland

For Tenants:

Prior to April 27, Tenants who have evidence regarding the termination of work and have lodged an application to receive Centrelink income support and have less than $10,000 total in cash and savings were eligible for a rental one off payment of up to four weeks rent (or $2,000 max). 

At the time of writing this article, the application process has closed for Queensland’s rental relief grant. For more information, visit Queensland’s rental assistance page. 

For Landlords:

Queensland landlords have access to a 25% land tax relief for the 2019-2020 assessment year, along with a three month deferral on land tax liabilities. Application for land tax rebate can be applied up until 30 June 2020.

For more information visit and https://www.qld.gov.au/environment/land/tax/covid-19apply via OSR Online

South Australia

For Tenants:

South Australia is instituting a short term blanket ban on eviction for non payment of rent due to severe rental distress as a result of COVID-19. This blanket ban is most likely the result of low instances of COVID-19 in the state. Unlike other states, If an agreement can not be reached between the landlord and tenant, the landlord may still apply directly for Tribunal.

For Landlords:

Effected landlords may also apply for a 25% land tax reduction for the 2019-2020 tax year and be able to defer the 2019-2020 3rd and 4th quarterly land tax payments for up to six months. 

Frequently asked questions:

Summary

If as a landlord you are faced with a tenant who is unable to pay rent, there are 5 main steps to follow.

1. Confirm that your tenant is impacted by Covid-19 – your property manager can help you to ascertain if they qualify for any relief.
2. Ensure tenant pursues renter relief
3. The government encourages landlords and tenants to work together to reach an agreement over the six month period to the end of September that can work for both parties. If an agreement cannot be reached, each state has varying processes to follow – mostly involving mandatory conciliation by the relevant tribunal or governing body.
4. Pursue landlord relief
5. Talk to your bank to defer mortgage payments if required.

If you need some help with maintaining your portfolio during these times or would like some further information, don’t hesitate to book a free appointment to discuss with one of our experienced property strategists.