Date posted: 8/05/2020 2 min read

NSW announces rental support measures

Increased support will be available for commercial and residential tenants and landlords facing financial hardship in NSW due to COVID-19.

In Brief

  • Six-month moratorium on evictions for residential renters financially disadvantaged by COVID-19
  • Interim 60-day stop on landlords seeking to evict due to rental arrears
  • Measures will also apply to commercial leases

The NSW Government has announced a A$440 million package which will be equally split between the commercial and residential sectors.

Eligible landlords (commercial and residential) will be eligible for a land tax concession or rebate of up to 25% if they pass on the savings to their tenants that have been financially impacted by COVID-19. A further land tax deferral for any outstanding amounts (for a 3-month period) will also be offered to eligible landlords who claim the concession. Further guidelines are available on the Revenue NSW website.  Apply for COVID-19 Land Tax relief.

Commercial tenancies:

In line with the announcement from the National Cabinet earlier this month, business tenants in NSW with a turnover of less than $50 million that have experienced a 30% or more reduction in revenue (as a result of COVID-19) maybe eligible. This also includes businesses who are eligible for the Government's JobKeeper program and have an annual turnover of less than $50 million.

Residential tenancies:

The package also includes a six-month moratorium on residential tenancy evictions for those financially disadvantaged by COVID-19 and an interim 60-day stop on landlords seeking to evict tenants due to rental arrears as a result of COVID-19.

How do householders demonstrate they are impacted and financially disadvantaged by COVID-19?

  1. One or more rent-paying members of a household have lost employment or income (or had a reduction in employment or income) due to COVID-19 business closures or stand-downs.
  2. One or more rent-paying members of a household have had to stop working or reduce work hours due to illness with COVID-19 or due to COVID-19 carer responsibilities for household or family members.
  3. The above factors result in a household income (inclusive of any government assistance) that is reduced by 25% or more.

Landlords are required to negotiate a rent reduction with the tenant (in good faith) in the first instance and can seek to issue a termination notice or apply for an eviction only after the interim 60-day stop. NSW's Department of Fair Trading is available for landlords and tenants in the event an agreement is needed.

The NSW Government encourages landlords and tenants to reach agreements on rent reductions during the COVID-19 pandemic lockdown.

NSW Government offers $440 million land tax break to support tenants and landlords

Read the NSW Government announcement

NSW Department of Fair Trading website

For further information on the temporary rental support measures, including flow charts and FAQs.

NSW Department of Fair Trading

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