The Victorian Government this week announced its $500 million rent package in response to the coronavirus crisis.
Included in the assistance package is $420 million in land tax relief for both commercial and residential landlords who discount rents for their struggling tenants.
The other $80 million is set aside for tenants who remain under rental stress despite attempts at mediation.
Leah Calnan from the Real Estate Institute of Victoria told realestate.com.au she welcomed the announcement.
“This announcement means everybody who is in financial hardship will receive some sort of relief and we’re really pleased about that,” she said.
“These are also clearer guidelines for property managers, who have been stressed about not having clearer guidelines until this point in time.”
Tenants Victoria have been receiving a steady stream of calls for help from renters who will be relieved at the support after most landlords refused to offer assistance on their own.
Jennifer Beveridge is the CEO at Tenants Victoria and spoke to realestate.com.au.
“The land tax relief on offer will provide a good incentive for landlords to enter into mediation with renters and the moratorium on evictions and rent increases is urgently needed,” she said.
“Tenants Victoria especially welcomes the $80 million identified to provide relief for renters who are in rental stress – defined as paying 30 per cent or more of their income in rental payments.”
Premier Daniel Andrews said he encourages landlords and tenants to sit down together in mediation and ‘do the right thing’.