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Posted: 2020-04-15 00:49:22

Updated April 15, 2020 14:13:26

Victorian Premier Daniel Andrews has announced a $500 million package to assist commercial and residential landlords and tenants during the coronavirus pandemic.

Key points:

  • The Government is allocating $420 million in land tax relief to landlords who give discounts to their tenants and $80 million for residential renters facing hardship
  • A special sitting of Parliament will be held next Thursday to pass legislation for the measures and to introduce temporary bans on evictions and rental increases
  • Landlords and tenants unable to come to an agreement will be able to use a fast-tracked dispute resolution process

The package will include $420 million in land tax relief for landlords who provide tenants with rent discounts, while $80 million will go towards rental assistance for Victorians experiencing rental distress.

During a press conference this morning, Mr Andrews said the number of confirmed coronavirus cases had increased by eight since yesterday to 1,299 but the death toll remained at 14.

He said 21 people were in hospital with a further 18 in intensive care.

Vic COVID-19 snapshot

  • Confirmed cases so far: 1,299
  • Deaths: 14
  • Suspected community transmissions: 132
  • Cases in hospital: 39
  • Intensive care patients: 18
  • Recovered patients: 1,137
  • More than 72,000 Victorians tested
Updated Wednesday, April 15
Latest information from the Victorian Government

"All in all these numbers are stable, the strategy is working," he said, and thanked Victorians who were "following the rules".

"These numbers are the product of people doing the right thing," he said.

He said "every single Victorian" would be "touched by tragedy" if the situation unfolded like it has in other countries.

Landlords to get incentives to give tenants rent relief

Mr Andrews said landlords would receive a 25 per cent discount on their land tax if they provided tenants impacted by the coronavirus crisis with rent relief, with any remaining land tax able to be deferred until March 2021.

A new Coronavirus Relief Deputy Commissioner will be established at the State Revenue Office to manage claims.

The Government is also setting up a fast-tracked dispute resolution process for tenants and landlords, to be mediated by Consumer Affairs Victoria or the Victorian Small Business Commission.

Mr Andrews said the Government wanted landlords and tenants to have "good faith" negotiations and he was "very confident there will be agreements".

"It's in everyone's interests," he said.

But "even with a good faith agreement" there would be many Victorians under rental stress, he added.

The $80 million rental assistance fund will be for renters facing hardship due to the coronavirus crisis. These payments will be capped at $2,000.

To be eligible, renters will need to have registered their revised agreement with Consumer Affairs Victoria or gone through mediation, have less than $5,000 in savings and still be paying at least 30 per cent of their income in rent.

Mr Andrews said the Government was also introducing a temporary ban on evictions and pausing rental increases for six months.

The changes required for the measures will be legislated during a special sitting of Parliament next Thursday.

Treasurer Tim Pallas said his expectation was for landlords and tenants to work together

"And what that means is essentially you have to sit down together and go through your arrangements," Mr Pallas said.

Mr Pallas said he expected more than 10,000 landlords would access the land tax relief.

"You have to have reached an agreement," Mr Pallas said.

Measures welcomed by tenants' advocates

Tenants Victoria chief executive Jennifer Beveridge said the land tax relief would be a good incentive for landlords to enter into mediation with renters and the moratorium on evictions and rent increases was urgently needed.

"Tenants Victoria especially welcomes the $80 million identified to provide relief for renters who are in rental stress," Ms Beveridge said.

"Every day of this crisis we are hearing stories of distress, including in one share house where three of the four renters have lost their jobs.

"This issue has particularly impacted on young people and families who just don't have the savings to get them through this period."

Victorian Council of Social Service chief executive Emma King said the new measures gave renters strong and necessary protections.

However, Ms King said the detail of how negotiations would work was yet to be explained.

"It's also unclear whether renters who accept a payment deferral will end up saddled with a mountain debt at the end of the pandemic," Ms King said.

"That would be a tragic and dangerous outcome."

Property Council Victoria executive director Cressida Wall also welcomed the announcement, which she described as a "substantial package to respond to this unprecedented time".

But she said that relief from financial institutions was a "crucial, missing piece of the puzzle" as loan repayments were a landlord's biggest fixed cost.

"Commercial landlords acknowledge the pain many tenants are facing but without support from banks, commercial landlords face extreme pressure and some cannot survive prolonged significant discounting," she said.

She added that safeguards were needed to ensure the moratorium on evictions did not lead to "opportunism by commercial tenants".

'Vast majority' of people doing the right thing

A statement from Victoria Police earlier said officers had conducted 824 spot checks and issued 52 fines for breaches of coronavirus restrictions in the 24 hours to 11pm on Tuesday

The statement said examples of breaches included:

  • Multiple instances of private gatherings at residential properties
  • Ten youths gathering at a skate park in Greater Dandenong
  • Six people playing tennis together on closed public tennis court in Maribyrnong
  • Eight youths socialising together at a closed school

During the press conference, Mr Andrews said the "vast, vast majority of people" were doing the right thing.

Stay up-to-date on the coronavirus outbreak

He defended Victoria Police's handling of fines and said while some mistakes had been made, the force had been doing a good job.

He said fines were not issued for "trifling matters" but were matters of "life and death".

"You can have tens of thousands of warnings given out, well that just means that you're telling Victorians you don't need to follow the rules," he said.

What you need to know about coronavirus:

Topics: covid-19, diseases-and-disorders, health, government-and-politics, states-and-territories, vic, melbourne-3000, mildura-3500, shepparton-3630, ballarat-3350, bright-3741, bendigo-3550, geelong-3220

First posted April 15, 2020 10:49:22

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