From the early days of this lockdown, the Tenants’ Union and others called for financial support and protection for renters. So we welcomed the measures announced on 13 July from the Commonwealth and NSW Governments to support impacted renters. The income supports and the incentives for landlords to reduce rent will make a real difference. The stop on evictions will also help impacted renters to stay in their homes at this critical time.
What are the key support measures?
- Increased weekly COVID-19 Disaster Payment
The COVID-19 Disaster Payment is now weekly, and has increased from $325 to $375 for people who have lost between 8-20 hours of work, and from $500 to $600 for people who have lost more than 20 hours of work.
- 60 day stop on eviction for ‘impacted’ tenants
Renters who have lost at least 25% of household income are protected from eviction due to rental arrears. You must give notice to your landlord that you are an impacted tenant and continue to pay at least 25% of your weekly rent. This protection is in place until 11 September 2021.
- Support for landlords who waive rent
The government is strongly encouraging landlords to provide ‘rent relief’ and to negotiate to reduce rents. The government will be providing some relief for landlords who waive some or all rent, and who pass the full amount of the discount on to their renters. Landlords can access land tax relief, or a $1,500 payment if they are not eligible for land tax relief.
Additional temporary accommodation
$10 million to increase the accommodation available (through hotels and motels) for people experiencing homelessness during lockdown.
What are the major gaps and concerns?
- Many will not be eligible and will miss out on payments
A number of groups of renters are not eligible for support. Previously, additional ‘top up’ payments to income support recognised that people needed help to ‘stay home’ – whether they were struggling as a result of lost work, or just because rents are so high and income supports so low. People can’t stay home if they can’t afford the rent.
- No protection from other evictions, such as ‘no grounds’
Impacted renters are only protected from eviction due to arrears. A renter who doesn’t quite fit the definition of ‘impacted’, or gets an eviction notice for some other reason, can still be forced to move.
- No clear obligation on landlords to negotiate reduced rent
Sadly we know from experience that if they think it’s going to be too much hassle to apply for the payment, some landlords won’t bother and won’t reduce rent at all. A much more effective way of delivering the payment would be to provide it directly to the tenant.
Access issues
Landlords and their agents are still able to force a range of entries into renters’ homes against the wishes of the occupants. More info below.
What are the major gaps and concerns?
- Many will not be eligible and will miss out on payments
A number of groups of renters are not eligible for support. Previously, additional ‘top up’ payments to income support recognised that people needed help to ‘stay home’ – whether they were struggling as a result of lost work, or just because rents are so high and income supports so low. People can’t stay home if they can’t afford the rent.
- No protection from other evictions, such as ‘no grounds’
Impacted renters are only protected from eviction due to arrears. A renter who doesn’t quite fit the definition of ‘impacted’, or gets an eviction notice for some other reason, can still be forced to move.
- No clear obligation on landlords to negotiate reduced rent
Sadly we know from experience that if they think it’s going to be too much hassle to apply for the payment, some landlords won’t bother and won’t reduce rent at all. A much more effective way of delivering the payment would be to provide it directly to the tenant.
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