Rental relief and coronavirus: Support for Australian tenants who can’t pay rent
Struggling to pay rent because of coronavirus? There is now a six-month eviction moratorium to protect tenants in financial stress.
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In response to the coronavirus pandemic the Australian government has announced there will be rental relief in the form of a moratorium on evictions for six months (a moratorium means a temporary ban or suspension).
Read on to find tips for struggling renters and current support options, including links to tenancy support organisations.
What's in this guide?
- Can my landlord evict me during the coronavirus pandemic?
- Coronavirus rent support and policies by state
- Tips for tenants who can't afford rent because of coronavirus
- Existing government rent support in each state and territory
- Tenancy support organisations in each state and territory
- More questions about renting and COVID-19
Can my landlord evict me during the coronavirus pandemic?
There is now a six-month moratorium on evictions in Australia for renters affected by coronavirus. This mean if you are unable to pay rent due to coronavirus-related financial stress then your landlord cannot evict you right now.
This does not mean that you can simply avoid paying rent or violate your lease in other ways, and the normal laws in your state or territory will still apply. But a moratorium means that evictions cannot take place. The details surrounding the eviction moratorium remain unclear at this time.
Consult your state or territory's tenants' union or advisory service if you think you are being evicted illegally.
Coronavirus rent support and policies by state
We will continue to update this page with more information as state, territory and federal governments announce changes to tenancy laws in response to the coronavirus.
In NSW there is a 60-day stop on evictions and a six-month restriction on evictions. These rules don't apply to all evictions, only for tenants who meet the coronavirus financial hardship criteria. The changes in regulations are designed to encourage landlords to negotiate rent reductions with their tenants.
- 60 day eviction stop. Landlords cannot issue termination notices to renters struggling to make rent because of coronavirus.
- Six month eviction restriction. For six months landlords are restricted from evicting tenants affected by coronavirus unless they try to negotiate reduced rent with their tenant first.
If a landlord will not negotiate or the tenant will be in financial hardship, the tenant can terminate a tenancy agreement.
Landlords can still apply to the NSW Civil and Administrative Tribunal to take possession of the rental property in cases of "undue hardship."
A tenant or household qualifies as affected financially by coronavirus if the household suffers an income reduction of 25% or more because:
- One or more of the rent-paying tenants has lost a job or income.
- One or more rent-paying tenants has had to stop working or work fewer hours because they are ill with coronavirus or are caring for someone who is ill with the virus.
The Victorian government has announced a $500 million package for commercial and residential tenants and landlords, which includes a temporary eviction ban and a pause on rent increases for six months.
There is a one-off $2,000 grant for Victorians unable to pay their rent due to the pandemic. To qualify, you must reach a revised rental agreement and reduced rent amount with your landlord. Your household income must be under $1,903, have less than $5,000 in savings and be paying at least 30% of your income as rent.
The grant is paid directly to the landlord or agent.
There is a six-month moratorium on evictions in Victoria for tenants who are suffering financial hardship to COVID-19.
The Tasmanian government has passed "a moratorium on the eviction of tenants for breaching a condition of their residential tenancy agreement, where that breach relates to rent being in arrears. A property owner will not be able to issue a notice to vacate for this reason during the emergency period."
In other words, while you still need to pay rent, your landlord can't evict you during the emergency period. No eviction notice will have any effect until 30 June 2020.
In cases of severe hardship, tenants can apply to have a tenancy severed.
There is a six-month freeze on evictions for tenants experiencing coronavirus-related financial stress. Landlords and tenants must work together to negotiate rent reductions or other agreements, with disputes to be mediated through the Residential Tenancies Authority.
There is a $400 million land tax relief package to help Queensland landlords, in the form of a tax discount or refund, but only if they pass this saving on to their tenants.
You can learn more here.
There is a temporary ban on evictions until 22 October 2020, although this may be revised. There is also tax relief for landlords who offer reduced rent to struggling tenants.
The Western Australian government passed a moratorium banning most evictions during the crisis. Hardship and property damage are still grounds for evictions. This emergency period runs until 29 September 2020 but may be revised to earlier or later date.
One-off cash grants are also available to some affected renters.
The state has banned evictions and rent increases for six months. There is also land tax relief for residential and non-residential tenancies.
The Northern Territory
The NT government has not yet announced a specific eviction ban for residential tenants.
Tips for tenants who can't afford rent because of coronavirus
If you're currently struggling to pay rent because of unemployment or lost income here are some basic steps to take:
- Know your rights as a renter. Read up on tenancy laws where you live and check your lease for specific details covering what you and landlord can and can't do.
- Talk to your landlord. If you can't make repayments you should communicate this to your landlord. We know, your landlord is unlikely to waive your rental payments. But they need to know your situation and who knows, compassion may prevail (or they may offer a temporary rent reduction).
- Get in touch with your local tenancy support service. There are organisations in every state and territory that offer counselling and legal guidance to struggling tenants. We've listed these organisations below.
- Check if you're eligible for unemployment benefits. If you've lost your job recently then you may be eligible for a JobSeeker allowance or other payment. This payment has been increased due to COVID-19. If eligible, this could help you cover rent and bills.
Existing government rent support in each state and territory
At the federal level the government offers rent assistance to eligible renters. You typically need to be receiving government support already to qualify.
There is some support for struggling renters at the state/territory level. The following pages are official government sites listing housing and rent information, including tenancy rules and types of rebates, payments and other support you may be eligible for.
Tenancy support organisations in each state and territory
Here's a list of specific organisations that offer support and legal guidance for renters in each state and territory. These are not government services but voluntary organisations and unions that help renters.
More questions about renting and COVID-19
Can inspections continue during the pandemic?
If your lease is ending soon your landlord or agent can show prospective tenants or buyers into your home. These inspections must be private inspections rather than open inspections, which are now banned.
Your agent must contact you in advance and should ensure that anyone entering your home doesn't touch anything, uses hand sanitiser and doesn't have any coronavirus symptoms.
How do I negotiate with my landlord or agent?
Talk to your landlord or real estate agent and be upfront about your situation. If you have any evidence to support your loss of income, such as a termination letter, make sure you send them a copy. Also keep records of all your correspondence with your landlord.
If you need help dealing with your landlord, reach out to your local tenancy union.
My real estate agent told me to access my superannuation to cover my rent?
If your real estate agent is giving you financial advice they are going beyond their role as an agent and potentially breaching the law. On 03 April the Australian Securities and Investments Commission (ASIC) wrote a stern letter to real estate institutes requesting them to remind their agents not to provide unsolicited financial advice.
Always do your own research before making a financial decision and get advice from a licensed advisor if possible, or a debt counsellor.
Can I break my lease early if I can't afford rent?
If you want to break your lease because you can't afford the rent you should let your landlord know your intentions. They may agree to your terms or they may impose a break fee of some kind. If you cannot pay the rent at all your situation may considered hardship and a tribunal may consider this legitimate grounds for breaking your lease.
Further finance help
- If you are in financial distress please read our emergency finance help information or call the National Debt Helpline on 1800 007 007.
- Financial Counselling Australia can put you in touch with a financial counsellor.
- Please know that whatever financial and emotional stress you're suffering, you are not alone. Call Lifeline Australia on 13 11 14 if you need help.
Need to save some quick cash?
If you're struggling to keep up with your finances - you're not alone. You can save plenty of cash by doing some simple admin with your bills and expenses. Maybe switching credit cards or downgrading your mobile phone plan could save some money.
Managing your daily finances can help you get through this difficult time - You'll be glad you did it.
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