NSW offers continued support to tenants and landlords

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August 18 2021
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With Greater Sydney stuck in a prolonged lockdown, the state government has announced continued support for tenants and landlords who have seen a reduction in their income.

NSW offers continued support to tenants and landlords

In a statement made on Monday, the NSW government confirmed what industry experts have been expecting – that the government will continue its support to tenants and landlords for the duration of the lockdown.

Under the temporary pause on evictions, tenants who cannot meet their residential rent payments due to financial distress are protected from eviction until at least 11 September.

To be eligible for the measures, a tenant needs to show paying members of the household have seen a weekly income reduction of 25 per cent or more compared with the four weeks prior to 26 June 2021.

The household member must also pay at least 25 per cent of the rent.

However, the pause on evictions will not protect a tenant if there is illegal use of the premises, damages to the property or their lease ends.

The freeze on evictions also doesn’t apply to social housing tenancies as they have their own processes.

As such after 11 September, if a tenant is behind in rent and has not entered an agreement with the landlord to vary their rent, the landlord will be offered the power to terminate the lease.

Landlords are, however, being encouraged to work with their tenants on coming to an agreement on the level of rent those impacted by the pandemic are required to pay.

Any landlord who negotiates a rental discount with their tenant and also sees a 25 per cent reduction in income is eligible for up to $3,000 in government support.

Minister for Better Regulation and Innovation Kevin Anderson said the Residential Tenancy Support package has been extended for a second month due current lockdowns.

“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.”

The minister highlighted the importance of support for tenants as a way to slow down the spread of COVID-19.

“It’s hard enough having to lockdown in your home while we stop the spread of the virus, but this NSW government support means you can do that without fear of being evicted,” he said.

Landlords who applied for the support last month can make an additional application, while those who are yet to apply will be able to make one application for the total amount of rent waived, up to $1,500 a month, the Minister explained.

“The NSW government is ensuring both residential tenants and landlords have ongoing support by extending financial assistance for private landlords who pass on rent relief,” Mr Anderson continued.

“We have always encouraged landlords and tenants to work together to negotiate on rental agreements, and the NSW government has now made that conversation easier by supporting landlords so they can reduce rent for their tenants.”

Landlords will also have the option to apply for the COVID-19 land tax benefit instead of applying for the Residential Tenancy Support Payment, which is an offset of the land tax liability equal to the rent reduction granted.

Landlords cannot ask tenants to repay the amount of rent waived.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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