COVID-19 Financial Incentives for Landlords
Published on 10/08/2021
Updated on 13/09/2021
The NSW Government has introduced financial incentives that can be claimed by landlords who provide a rent reduction to tenants impacted by COVID-19 during this period. If you are an ‘impacted tenant’, you can advise your landlord that if they provide you with a rent reduction, then they can claim one of the following two types of government payments:
1. Residential Tenancy Support Payment
On Wednesday 14 July 2021, it was announced that this would be a payment of up to $1,500. In mid August this payment was increased to $3,000, and on 2 September to $4,500.
Landlords who already claimed up to $3,000 prior to the September announcement can make a further claim for reduced rent up to a total of $4,500.
- The amount for each landlord is capped at the rent reduction passed onto you, or $4,500, whichever is the lower.
- Landlords cannot ask you to repay the reduced amount of rent that has been paid to them under the Residential Tenancy Support Payment.
- Landlords/agents can apply for the Residential Tenancy Support Payment here.
- To apply, landlords or their managing agent will need to provide:
- proof to show a tenancy agreement exists (the rental bond lodgement number is preferred, or if no bond has been lodged, a copy of the residential tenancy agreement),
- a copy of the written agreement they have with you to reduce the rent (entered into on or after 14 July 2021),
- a consent signed by all tenants to share their personal details with NSW Fair Trading, and
- a nominated account for payment.
You will be notified by NSW Fair Trading when they receive an application for this payment by your landlord, and when the payment is approved. You will also be notified when the payment has been made to your landlord.
2. COVID-19 land tax benefit
- This incentive is available to landowners who have a have a 2021 land tax liability.
- Eligible landlords who provide a reduction in rent to a COVID-19 impacted tenant between 1 July 2021 and 31 December 2021, can receive a reduction in land tax payable for the relevant parcel of land.
- The amount for each landlord is capped at the rent reduction passed onto you, or 100 per cent of the 2021 land tax attributable to the parcel of land, whichever is the lower.
- Landlords can apply for the COVID-19 land tax benefit here.
Regardless of which of the above payments your landlord applies for, when you do reach an agreement with your landlord for a rent reduction, it must be in writing. Tenants can use this NSW Fair Trading template agreement to ensure that their agreement is in writing.
The rent reduction provided by your landlord can run for longer than the 60-day moratorium period (beyond 11 September 2021), and landlords can choose to waive more than $4,500 in rent. For further guidance on negotiating a rent reduction with your landlord, see the Renters’ Guide to COVID-19 and the NSW Fair Trading website. To talk to someone, contact your local Tenants' Advice and Advocacy Service.