ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Victoria Unveils $500m Land Tax and Rent Relief Package

b015a414-8a33-4e61-b45b-ee97866fa041

Tax relief for landlords, a six-month ban on both evictions and rental increases are part of Victoria’s $500 million package aimed at landlords, residential and commercial tenants.

The new package is made up of $420 million in land tax relief for commercial and residential landlords, and an $80 million rental assistance fund for tenants facing hardship due to Covid-19.

Evictions will be banned for residential and commercial tenancies, of small and medium-sized businesses, for six months.

Rental increases will also be banned for commercial and residential properties for the six month period.

In his announcement, Premier Daniel Andrews said partnerships would have to be formed between tenants, landlords and banks.

“More than ever, we need to be working in partnership. Landlords working with tenants. Tenants working with landlords,” Andrews said.

The package will be backdated to when the national cabinet announced the six-month moratorium on evictions, on 29 March.

Victoria follows New South Wales and Queensland in the latest rent and land tax relief measures in response to Covid-19.

A fast-tracked dispute resolution service will also be established, with Consumer Affairs Victoria or the Victorian Small Business Commission mediating, for tenants and landlords unable to come to an agreement.

▲ Victorian Premier Daniel Andrews announced a $500 million package towards commercial and residential landlords.
▲ Victorian Premier Daniel Andrews announced a $500 million package towards commercial and residential landlords.


While land tax reduction isn't going to be applicable for all investors REIV President Leah Calnan said it would certainly assist a reasonable number of people.

“We're pleased that the government has provided clearer formulas for rent reductions, and working on that 30 per cent indicated will make it much easier for tenants to be able to demonstrate where they have had a reduced income during Covid-19,” Calnan said.

“Both parties, renters and owners are experiencing hardship… I think these formulas will allow negotiations to be clearer and a little bit more transparent.”

Victoria’s parliament will be recalled for an emergency sitting next Thursday to pass the new rental relief package.


What Victoria's $500m package means to:

Landlords

Victoria will provide $420 million in land tax relief.

If a landlord provides tenants impacted by coronavirus with rent relief, they will be eligible for a 25 per cent discount on land tax, while any remaining land tax can be deferred until March 2021.

A new Coronavirus Relief Deputy Commissioner will be established at the State Revenue Office to manage land tax relief claims.

Commercial tenancies

The state said it will “urgently legislate” so that eligible small and medium-sized businesses can achieve rental waivers or deferrals, in line with the national cabinet agreement to implement a mandatory code of conduct for commercial tenancies.

Measures for eligible businesses include an annual turnover under $50 million and have suffered more than a 30 per cent reduction in turnover due to coronavirus.

Tenants

Evictions will be banned for residential tenancies for six months.

Evictions will also be banned for six months for the non-payment of rent for commercial tenancies for small and medium-sized businesses.

Rental increases are also banned for commercial and residential properties for the same period.

State government will offer an $80 million rental assistance fund for vulnerable tenants.

Eligible tenants will have to prove they have less than $5000 in savings, still be paying at least 30 per cent of income on rent, and show a deal with the landlord has been made—via mediation or registering a revised agreement with Consumer Affairs Victora.

ADVERTISEMENT
CONTRIBUTE TO THE CONVERSATION
Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: https://www.theurbandeveloper.com/articles/victoria-500m-coronavirus-package-landlords-commercial-residential-tenants