Landlords

Moratorium on evictions is back. So what does it mean for investors?

The NSW government has announced a moratorium on evictions for the next six weeks as the state battles through lockdowns.

NSW Treasurer Dominic Perrottet has announced support for renters in the form of a ban on lockouts or evictions during the lockdown period.

“We want to encourage retailers right across NSW to work with landlords to make sure that we all get through this difficult time together,” Mr Perrottet said.

Residential tenants will also be offered support, with no evictions announced for the next 60 days “for those doing it tough, for workers who had a reduction in income by 25 per cent”.

However, the Treasurer said landlords will not be left with the bill, saying he will offer support for landlords who offer rent reductions.

For any rent reductions the landlords offer their tenants, they will receive a “rebate or discount in relation to land tax payable from that landlord to the state”.

“For those landlords that don’t qualify for land tax, we will provide a $1,500 payment as well.”

In conjunction with support for renters, the federal government has announced it will up disaster relief payments by between $50 and $100, meaning eligible individuals will now be offered $375 or $600 per week for lost work as a direct result of the lockdown.

Although the increase comes in response to the situation in NSW, the Prime Minister confirmed that like all pandemic support, this new sum will be available to all jurisdictions that find themselves in the same predicament – extended lockdown.

These payments will be available across NSW for the duration of the lockdown.

As for businesses, a job-saving measure will be funded in conjunction with the NSW government, with Premier Gladys Berejiklian and Prime Minister Scott Morrison pledging a direct payment to help boost cash flow and ensure employers don’t have to lay off staff during this lockdown.

The cash boost grants are similar to the $20,000 to $100,000 payments offered to small and medium businesses in March last year, to help employers fund staff and bills.

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