NSW Government Increased Financial Support for Tenants and Landlords

Written on the 19 August 2021

Increased Financial Support for Tenants and Landlord

NSW has been recording its highest number of COVID-19 cases in recent days. As Sydney has encountered harsher restrictions during the lockdown, many individuals have been affected by lockdown as expected; and many have called out for support to make ends meet.

Therefore, the NSW government has extended the Residential Tenancy Support package to increase financial security for tenants and landlords. The Residential Tenancy Support package protects tenants with a 60-day eviction moratorium, and financially assists landlords who reduce rent payment for tenants.

To receive support from the government, tenants and landlords should fulfill all the eligibility criteria, which will be discussed below.

Tenant's Eligibility for the Financial Support

The 60-day eviction moratorium protects tenants who are unable to pay their rent payments, and the measure will take place until 11 September 2021. But, it is important to note that this measure does not apply to social housing tenancies as they have different measures for arrears.

The NSW will protect tenants from eviction for the following 60 days -- and to be eligible for this new measure, a tenant needs to do the following:

1. Submit a statement showing that the household has lost at least 25% percent of its weekly income during the lockdown. The government defines a household as anyone who contributes to paying the rent, including those whose names are not listed in the lease agreement.
2. Prove that COVID-19 has impacted the rent-paying members of the household. It can be a loss of employment, reduced working hours, or unavailability to work due to COVID-19 illness.
3. Agree to pay at least 25% of the rent payment.

Landlord's Eligibility for Financial Support

NSW government assists landlords by providing financial support up to $3,000; or a reduction on their land tax. Keep in mind that landlords can only choose one of the stated supports; however, landlords are allowed to make separate claims for each premise they own.

The Residential Tenancy Support Payment allows landlords to access another $1,500, and now provides up to $3,000 of financial support. To be eligible in accessing this measure, landlords have to provide a rent relief for the qualified COVID-19 impacted tenants.

Alternatively, landlords can claim the COVID-19 land tax benefit instead. According to the government, a COVID-19 land tax benefit is "an offset of the tax liability equal to the rent reduction granted."

To claim one of this financial assistance, the landlords have to do the following:

1. Create a written residential tenancy agreement as a form of rent relief proof.
2. Show that their tenants are considered as eligible COVID-19 impacted tenants.

How Has the Residential Tenancy Support Help Tenants and Landlords?

While the future is still unknown, it is great for tenants and landlords to get extended support from the government.

Minister for Better Regulation and Innovation, Kevin Anderson said, "Keeping people safe doesn't just mean reducing the health threats of the virus. It is vital we help keep a roof over the heads of those who may be suffering financial hardship at this difficult time."

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Source:

- NSW Government - Fair Trading

- Domain.com.au