Victoria Announces $500m in Land Tax and Rent Relief
Additional support for Victorian investors and business owners with an additional stimulus package announcing $500 million to support tenants and landlords during the COVID-19 pandemic. Residential and commercial tenancy law has been amended, allocating the $500 million between land tax relief and rental assistance for those negatively affected by COVID-19.
The allocation of $420 million in land tax relief and $80 million in rental assistance will be applied with:
- A temporary ban on evictions;
- A pause on rental increases for six months (except in certain circumstances); and
- Provide land tax relief for landlords and rent relief for tenants.
- The ban also extends to the non-payment of rent for commercial tenancies of small and medium-sized businesses.
Under the new legislation, if a landlord provides tenants with rent relief they will be eligible for a 25% discount on land tax, with any remaining land tax able to be deferred until March 2021.
The $80 million in rental assistance will be provided to eligible renters who have registered their revised rental agreement with Consumer Affairs Victoria or have gone through mediation, have less than $5,000 in savings are be paying a minimum of 30% of their income in rent.
If landlords and tenants cannot agree on a reduction in rent, renters will be given access to a fast tracked dispute resolution service with Consumer Affairs Victoria or the Victorian Small Business Commission for mediation.
The emergency legislation with pass through parliament Thursday 23 March 2020.
Want to know more?
Modoras is working hard to ensure we have relevant content to keep you up to date on Government stimulus measures. To review the latest materials, please click here.
Below are some articles that may interest you:
- JobKeeper Payment: Relief for Employers and Employees
- Are you entitled to the Federal Government Stimulus Package
Modoras is here to support you during these times. Contact us on 1300 888 803 book a catch up with a Modoras professional.
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