Are You a Landlord in Qld? REIQ Says, Protest Against Eviction Relief for Tenants
Australia’s Prime Minister Scott Morrison previously announced about the prohibition on tenant evictions for a period of six months, due to Covid-19.
“States and territories will be moving to put a moratorium on evictions of persons as a result of financial distress if they are unable to meet their commitments. And so there will be a moratorium on evictions for the next six months under those rental arrangements.”
REIQ is urging landlords to write to Qld’s Premier, Annastacia Palaszczuk, protesting against the protections, as Qld Labor’s proposed legislation was heavily weighted against landlords. Landlords fear that some tenants may see this period as an opportunity to pay no rent, giving no legal recourse to the landlord, who would have their own bills and/or mortgages to pay. Additionally the Qld State government was proposing that a lower rent can be negotiated, but that this would be a permanent reduction. IN8 knows what Ms Mercorella from REIQ is saying is true, that there is a misconception in Australia, that landlords are rich and wealthy people. Some are, but the majority are Mums and Dads trying to save for their retirement, and those landlords on negatively geared properties are particularly vulnerable in the current economic climate. Note that from a landlord perspective, with the banks’ offers to defer mortgage payments, there is only a deferral of payments, not an interest charging holiday, and if you weren’t keeping up with your mortgage payments before COVID-19 reared its ugly head, your credit rating might possibly even be affected; and also you will be paying more interest over the extended life of the loan. Other states have offered a deferral scheme, not 100% discount or permanent reduction in rent. We all need to work together to sustain our Australian economy, but landlords should not have to do all the ‘heavy lifting’ with regards to tenants. Apparently Qld Labor is already reconsidering some of the conditions, but add your voice as a landlord by email Annastacia Palaszczuk on this email address inala@parliament.qld.gov.au.
Tenants & Landlords – Land Tax Relief
To support both tenants and landlords, the Victorian, NSW & Qld Governments recently announced that they will be allocating over $400 million plus each as land tax relief. As part of this land tax relief, they will provide landlords up to 25 per cent discount on land tax; provided that they pass those savings straight through to tenants with rent relief.
The Government aims to provide assistance to both the landlords and the tenants. Theoretically both parties win; on one hand, landlords will be given incentives in the form of land tax reduction of up to 25 per cent. On another hand, tenants who are currently suffering from financial hardships due to coronavirus will continue to be accommodated. However, REIQ estimates that only about 16% of landlords actually pay land tax, so it only helps some landlords and tenants.
You can apply for the land tax rebate up to 30 June 2020.
Read more about the reliefs provided by each State here:
