While the ACT Government’s $5.25 million rental assistance package for residential and commercial tenancies is welcome, the Real Estate Institute of the ACT is concerned many landlords are still suffering from the Emergency Declarations of 2020.
The ACT Government today announced they will provide $5.25 million in funding in emergency support for residential and commercial renters and landlords during the COVID-19 lockdown.
REI ACT CEO Michelle Tynan said “many landlords, both commercial and residential, are simply not in a position to extend the generous reductions and deferrals that had been forthcoming last year”.
“If landlords are not in a position to offer rent reductions, the Land Tax Incentive Scheme will be of no assistance,” she said.
Ms Tynan said that many tenants are still repaying debt accumulated during 2020, and the lockdown extension, as well as the gradual easing of restrictions, will only place them in an untenable situation where they accrue more debt.
Across the border, the NSW Residential Tenancy Support Package supplies funds for landlords to directly access in order to then pass on the reductions to their tenants, and Ms Tynan said this has been well received by both parties.
“The [NSW] scheme has enabled both tenants and landlords to reach sensible outcomes to ensure tenancies can be maintained, and we are consistently being told this lockdown is vastly different from 2020 so we need to be able to tailor assistance in the most effective and efficient way,” she said.
“Our discussions with the [ACT] government today were encouraging in that they have committed to re-engaging with the Insitute should the lockdown become protracted and investigate other assistance measures.”
Chief Minister Andrew Barr said it’s important for government, landlords and tenants to work together again to respond to the impacts of the current lockdown.
“Once again, access to free mediation will be available to help commercial landlords and tenants negotiate changes to rental agreements,” he said.
“The economic impacts of this pandemic will be felt for years, and we are providing for significant financial support to keep our local small businesses going.”
Small businesses have been offered further assistance with the COVID-10 Small Business Hardship Scheme, while commercial tenancies are being offered the same incentive package from 2020.
