Land Tax and Rent Relief Funding
The Victorian Government is offering assistance to Tenants and Landlords due to COVID-19
The Victorian Government is acting on the new commercial tenancies code by pledging half a billion dollars to tenants and landlords as they struggle with the impacts of coronavirus-related economic disruption.
The package is the largest state-backed initiative of its kind to date, compared to $440 million from the NSW Government and $400 million from the Queensland Government over the past week. In late March the South Australian Government also announced six-month land tax deferrals.
The lion’s share of the Victorian funding will come in the form of $420 million for land tax relief, while the remaining $80 million will go to a rental assistance fund for renters facing hardship due of coronavirus.
“More than ever, we need to be working in partnership. Landlords working with tenants. Tenants working with landlords. And Government willing to help those most in need,” says Premier Daniel Andrews (pictured).
“This is about supporting tenants, landlords and small business and making sure that everyone can make it to the other side of this pandemic,” adds Treasurer Tim Pallas.
Businesses will only be eligible for the measures if they have an annual turnover under $50 million per year and have experienced more than a 30 per cent reduction in turnover due to the coronavirus.
Key aspects of the bill include:
- Land tax relief for landlords who give rental relief to tenants;
- A ban on evictions for six months for residential and commercial tenants;
- A ban on rental increases;
- Rent relief for tenants experiencing hardship;
- Fast-tracked dispute resolution access for tenants and landlords;
- The establishment of a Coronavirus Relief Deputy Commissioner to handle land tax relief claims; and
- Implementation of the mandatory code of conduct for commercial tenancies as agreed upon by the National Cabinet.
If a landlord provides tenants impacted by Covid-19 with rent relief, they will be eligible for a 25 per cent discount on their 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 these land tax relief claims
