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?
With the equity markets and Government support packages frequently changing, we are continually updating and creating new tools and information for you. To review the latest materials on COVID-19, please click here. This page will be regularly updated, so please check back in from time to time.
Below are some articles that may interest you:
- JobKeeper Payment: Relief for Employers and Employees
- Are you entitled to the Federal Government Stimulus Package
- Government Stimulus Package for Business
- Government Stimulus Package for Individuals
- Australian Tax Office Relief
We’re here to support you through the changes. From making the most of the stimulus initiatives, through to managing the risks associated with the impact of the Coronavirus, the Modoras team is here to help you build a resilient business. Make well-informed business decisions; contact us on 1300 888 803 book a catch up with a Modoras professional.
IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (VIC) Pty Ltd ACN 145 368 850. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (VIC) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (VIC) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (VIC) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (VIC) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.