Residential Tenancy Support Package

Written on the 20 November 2021

From the start of August 10 to November 12 2021, the NSW government has received 17,399 applications for residential tenancy support payments. A total amount of $30.93 million has been paid to the applicants, and another $2 million will be paid on November 19, 2021.

The uncertainties of the COVID-19 pandemic situation have put enough financial pressure on the residents. Therefore, the NSW government keeps on providing supports for its residents. The residential tenancy support package aims to assist the COVID-19 impacted tenants and landlords with their financial burdens. Now, the residential tenancy support package provides up to $4,500 worth of assistance. Landlords can make a further claim up to $4,500 even if they have already claimed the $3,000 grant.

Eligibilities of Impacted Tenants and Landlords

Impacted tenants and landlords can claim the residential tenancy support package.

To claim the support package, tenants need to be able to prove:

-       Rent-paying household members: (1) have lost employment, reduced working hours, or decreased income, (2) ill with COVID-19, and therefore, need to stop working or work less hours.

-       The household’s weekly net income (after-tax income) is reduced by at least 25%, including all government assistance received. It is important to note that savings are not considered as weekly income.

The following are the documents that the tenant will need to provide:

-       Sign the application for the residential tenancy support payment

-       Gain consent from the landlord to disclose the details of their rent account

Suppose tenants are able to satisfy all of the requirements listed above. Below are the following steps:

1. Negotiate with landlords: Tenants are still subject to pay at least 25% of their rent to remain eligible for eviction protection. If landlords are not willing to share rent account details, tenants can request help from the government by completing an “application for rent negotiation” form through the Fair Trading Website.
2. Provide evidence to show eligibility: Tenants need to provide evidence to the landlord to prove that they are eligible COVID-19 impacted tenants. The evidence can be in the form of: (1) income statement, (2) letter of job termination from employer, (3) medical certificates, or (4) evidence of business closure.
3. Get consent to disclose details: This includes the personal information of the tenant and landlord, along with the rent account details. Since it involves privacy laws, consent is needed before these details can be shared.

On the other hand, the following are the steps that landlords should take if they are eligible for the support package:

1. Negotiate with tenants: To be eligible for the support, landlords need to prove that the COVID-19 pandemic impacts their tenants. Landlords have to request evidence from tenants, such as: (1) bank statement showing reduced income, (2) letter of job termination from their employer, (3) medical certificates, or (4) evidence of business closure. Furthermore, landlords have to prove that they have waived rent for a period of time or reduced rent payment. It includes: (1) a copy of the residential tenancy agreement or (2) a rental bond number.
2. Complete online application: To proceed with the support package, landlords need to fill out an online application for financial assistance found on Fair Trading Website.

Payment Information

Once the application is approved, all claims will be deposited directly to the landlord’s bank account. Therefore, the bank account details need to be included by the landlord in the consent form.

Eviction Protection after 11 November 2021

Tenants are given eviction protection if they cannot meet their rent payments from July 14 2021, until November 11 2021. After November 11 2021, there will be a transitional period until the end of February 12 2022. The Tribunal will consider the following circumstances for the tenant to not get evicted:

-       The vulnerability of the tenant

-       The financial burden of the landlord or tenant

-       The reasonable alternatives of the tenant

-       The financial assistance available to landlords

-       The repayment negotiation made by the landlord and the tenant

Source:

-       NSW Fair Trading