Announcement about extension of the CTRS in Victoria

August 20, 2020

Uncategorized

The Financial Review has just published the following:

Ban on rent increases and evictions extended

Patrick Durkin

The Victorian government is extending the ban on evictions and rental increases until the end of the year.

“Under the extensions, evictions will continue to be banned for residential and commercial tenants until December 31, unless in rare and specific circumstances,” Victorian Treasurer Tim Pallasa said.

“Rental hikes continue to be banned until the end of the year also,” he said.

Mr Pallas said in the last four months, there had been close to 26,000 agreements for reduced rent registered with Consumer Affairs Victoria.

The Victorian Small Business Commission has also helped around 8,000 rent-related inquiries.

“Most of those have been help that has been brokered to find common ground between tenants and landlords,” Mr Pallas said.

The state Treasurer said the government is also introducing additional measures with commercial landlords required to provide rent relief in proportion with falls in turnover.

“So, up until now, that proportionality principle has been aspired to, but we will now make it a very clear and expressed intention that, if you’re identifying a downturn in your capacity, your turnover, then you should have an expectation that that is similarly reflected in terms of the rent relief that you get,” Mr Pallas said.

“Residential and commercial landlords will be able to take more advantage of more support, including, for example, further land tax reductions and more grant funding. The government’s also going to extend the land tax relief available and make it easier to access,” he said.

Landlords that provide outright rent waivers of at least 50 per cent of rent payable for at least three months will be eligible for an additional 25 per cent land tax relief.

A $60 million fund will also be established for eligible small commercial landlords, and that will provide up to $3,000 per tenancy.

Additionally, the government will invest some $600,000 in a package to support advocacy groups such as VCOSS, Tenants Victoria, and others, to support vulnerable tenants to understand their rights.

About Sam Hopper

Sam is a property and insolvency barrister.

View all posts by Sam Hopper

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