Victoria’s evictions moratorium has been extended until the end of 2020. Source: iStock
Victorian tenants will “breathe a sigh of collective relief” now the state’s moratorium on evictions and rent hikes for those struggling through COVID-19 has been extended until the end of the year.
Treasurer Tim Pallas announced on Thursday that the bans would continue to apply for both residential and commercial tenants until December 31, well beyond the initial September 29 expiry date, with exceptions only “in rare and specific circumstances”.
Mr Pallas said further land tax relief and grant funding would be made available for residential and commercial landlords who supported struggling tenants amid Victoria’s second wave of COVID-19.
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Victorian Treasurer Tim Pallas announced the extension, along with a continued freeze on rent rises until December 31. Picture: AAP/James Ross
Landlords who provided “outright rent waivers” of at least 50 per cent for at least three months would now be eligible for an additional 25 per cent land tax relief, he said.
And a $60m fund would also be established to gift eligible small commercial landlords up to $3000 per tenancy.
“Nobody should be worried about losing a roof over their head right now, particularly given the circumstances around social distancing,” Mr Pallas said.
“This is about (ensuring) those who depend upon tenancy arrangements for their shelter, their homes, are provided with adequate safeguards.
“It’s also about making sure we … provide support and assistance to landlords who do the right thing by their tenants.”
Mr Pallas said the government was also encouraging banks to “continue to do the right
thing by their customers”, and investing about $600,000 to support tenancy advocacy groups like the Victorian Council of Social Service, and Tenants Victoria.
Tenants Victoria chief executive Jennifer Beveridge said the state’s renters could now “breathe a sigh of collective relief” that they would continue to be protected from evictions if they fell behind on rent.
“If there is need for a further extension, we are confident the government will respond,” Ms Beveridge said.
The peak body for renters previously called for the moratorium to be extended to the end of March.
The government first confirmed the moratorium in April. At the same time, it unveiled a $500m package to support both tenants and landlords, which also included $420m of land tax relief for landlords who discounted rents for tenants in pandemic-related hardship, plus $80m in assistance for tenants who remained in rental stress even after discounting.
Mr Pallas said on Thursday he expected to see land tax relief claims “in excess of $100m”.
He added almost 26,000 agreements for rent reductions had been registered with Consumer Affairs Victoria in the past four months.
The Victorian Small Business Commission had also assisted with about 8000 rent-related inquiries.
Despite losing her hospitality job, Courtney Windross is still managing to afford her rent, thanks to her partner’s continued employment and JobKeeper. Picture: Alex Coppel
Mr Pallas also clarified commercial landlords would now be required to provide rent relief “in proportion with falls in turnover”.
“If you’re identifying a downturn in your capacity, your turnover, then you should have an expectation that is similarly reflected in terms of the rent relief that you get,” he said.
Real Estate Institute of Victoria president Leah Calnan said a $1000 increase in the rent relief grant to $3000 was welcome news for landlords.
Further land tax concessions for impacted landlords would also help many who had been struggling amid rent reduction agreement.
“We’re still seeking clarity from government about how this change will affect pending (residential tenancy) cases in (the Victorian Civil and Administrative Tribunal), including where orders have already been issued in VCAT,” Ms Calnan said.
“We’ve also strongly advocated for the Residential Tenancies Act amendments to be postponed to July 2021 as we still haven’t seen any regulation around them.”
The 130 rent reforms have been delayed until January 1.
Premier Daniel Andrews said the protections were “important” for “both families and individuals who are renting, but also businesses who’ve got commercial arrangements and who, through no fault of their own, have got turnover that is a fraction of what it was this time last year”.
After the moratorium was initially announced, the government clarified evictions were only permitted if a tenant is engaging in threatening behaviour or maliciously damaging a property, or if a landlord is selling the home or they or their family need to move into it.
-with Jayitri Smiles, Jack Boronovskis
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