Resource Library COVID-19 (Coronavirus) Renting and property Residential tenancy support package

Residential tenancy support package

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The Residential tenancy support package applies to eligible COVID-19 impacted tenants and landlords. It includes a freeze on evictions and assistance for landlords who reduce rent.

On this page:

Lodge application for support payment

Please note, the online application for claims up to $4,500 is now available.

Claim tracker - residential tenancy support payments

From 10 August to 15 October 2021:

  • 13,470 applications received
  • 12,366 applications approved ($27.26 million)
  • 496 applications declined
  • 608 applications in progress
  • $14.02 million paid to applicants with a further $1.73 million to be paid on 18 October 2021.

This data was last updated on 15 October 2021.

Eligible COVID-19 impacted tenants

To be eligible for the new measures, a tenant needs to demonstrate that they are a member of a household impacted by the COVID-19 pandemic. A “household” means any tenants or other persons living together in the same residential premises.

A household is impacted by the COVID-19 pandemic if:

  1. any 1 or more rent-paying members of the household*:
    • lost employment or income, or have had a reduction in work hours or income, as a result of the impact of the COVID-19 pandemic, or
    • had to stop working (or materially reduce their work hours) because they or other members of the household were/are ill with COVID, and
  2. show that the household’s weekly income** has reduced by 25% or more (including any government assistance received) compared to the weekly income received in the 4 weeks prior to 26 June 2021.

*A “rent-paying member” of a household is any person who regularly contributes towards the rent payable under a residential tenancy agreement. This includes a member of a household who regularly contributes to the rent but is not named on the rental agreement (e.g. an adult child who contributes to the rental payments of their parent/s).

**household’s weekly income is the net income earned (after tax and/or business-related expenses). It includes any government assistance that is received – either before and/or since COVID support payments were introduced by the NSW and Commonwealth Governments. Savings and superannuation are not included in weekly income.

Freeze on evictions

Eligible COVID-19 impacted tenants who cannot meet their residential rent payments will be protected from eviction during the moratorium period starting on 14 July 2021 and ending at the end of 11 November 2021.

The protection against eviction for rental arrears applies to all residential tenancy agreements within the meaning of the Residential Tenancies Act 2010 (the Act), including oral agreements.

To be protected from eviction during the moratorium period, the impacted tenant must:

  1. be able to show the landlord that they are an impacted tenant, and
  2. continue to pay the landlord at least 25% of the rent payable under the residential tenancy agreement.

A landlord or agent may continue to seek termination in other circumstances including:

  • sale of premises
  • illegal use of premises
  • serious damage to the premises
  • hardship to the landlord
  • end of fixed-term agreement
  • ‘no grounds’ terminations.

The usual notice periods apply in these circumstances.

What happens after 11 November 2021?

Following the end of the freeze on evictions, a transitional period will run from 12 November 2021 until the end of 12 February 2022.

During this time, COVID-19 impacted tenants who accrued arrears during the moratorium period (14 July 2021 and 11 November 2021) are exempt from provisions that would allow them to be evicted for those arrears unless:

  • if the landlord and tenant have agreed to an arrears repayment plan:
    • the tenant fails to make repayments in the amounts and at the times required by the plan on two or more consecutive occasions, and
    • it is otherwise fair and reasonable in the circumstances for the tenant not to be exempt.

    OR

  • if the landlord and tenant have not agreed to a repayment plan:
    • the landlord and tenant have participated in good faith in a formal arrears repayment negotiation process with NSW Fair Trading, and
    • it is otherwise fair and reasonable in the circumstances for the tenant not to be exempt.

In considering whether it is fair and reasonable in the circumstances for the tenant not to be evicted, the Tribunal must have regard to:

  • the steps taken by the landlord and tenant to negotiate a repayment plan
  • any payments made by the impacted tenant towards the arrears
  • the nature of any financial hardship experienced by the landlord or tenant, including the general financial position of each party
  • the availability and affordability of reasonable alternative accommodation for the tenant
  • whether the landlord has applied for or received any financial assistance or land tax rebates available to landlords who reduce rent, and
  • any special vulnerability of the tenant.

Exclusions

The freeze on evictions does not apply to social housing tenancies as these have their own processes for dealing with arrears.

Financial support for rent reduction

A landlord can claim either this payment or the COVID-19 land tax benefit (which is an offset of the land tax liability equal to the rent reduction granted), but not both.

The Residential Tenancy Support Payment has been increased from $1,500 and now provides up to $4,500 per tenancy agreement. Landlords who have already claimed up to $1,500 or $3,000 can make a further claim for reduced rent up to a total of $4,500.

Important: Applications are now open for additional payments of up to $4,500.

This payment will be available for landlords who agree to reduce the rent for COVID-19 impacted tenants from 14 July 2021 until 11 November 2021.

The amount for each landlord will be capped at the rent reduction that is passed onto the tenants, or $4,500, whichever is the lower.

Landlords can make separate claims for each premise they own.

Landlords cannot ask tenants to repay the reduced amount of rent that has been paid to them under the residential tenancy support payment or land tax benefit.

Eligibility for support payment:

A landlord is eligible for this payment where:

  • there is a residential tenancy agreement with a tenant. As proof, you will need a rental bond number and/or a written tenancy agreement
  • the tenant is an eligible COVID-19 impacted tenant, and
  • the landlord agrees to be bound by the terms and conditions for the payment.

Additionally:

  • the property that is the subject of the application must be the tenant’s principal place of residence
  • residential premises that are being used for commercial purposes, such as short-term rental accommodation or as a serviced apartment are not eligible for the payment
  • residential premises that are being used as a boarding house or other shared accommodation arrangement are also not eligible for the payment.

A landlord can agree to vary the rent for a period that goes beyond 11 November 2021. Rent reductions beyond 11 November 2021 may be claimed as part of the payment.

A landlord can also:

  • reduce or waive rent in excess of $4,500
  • reduce or waive rent arrears that accrued before 14 July 2021
  • agree to vary the rent for a tenant who is not an eligible COVID-19 impacted tenant, or
  • defer rent

but these arrangements cannot be claimed as part of the payment.

There is also a range of other financial supports available. See nsw.gov.au.

What happens with arrears owing from the previous moratorium period?

In March 2021, the Government put in place the following measures to assist COVID-19 impacted tenants who accrued rent arrears between 15 April 2020 and 26 March 2021 (the previous moratorium period):

  • Landlords are only able to evict for these arrears if they have first attempted in good faith to negotiate a repayment plan. It also has to be fair and reasonable to evict.
  • The tenant cannot be evicted unless they have failed to meet the agreed payment on two consecutive occasions.
  • Tenants and landlords will continue to be able to apply to the NSW Civil and Administrative Tribunal (NCAT) to terminate tenancy agreements on the basis of hardship.
  • Existing agreements about the waiver or deferral of rent payment are not affected.
  • Landlords cannot evict using the ‘no grounds’ eviction process unless it is fair and reasonable to do so.
  • Tenants are permanently protected from being listed on tenancy databases.

These measures end on 26 September 2021.

Under the freeze on evictions, if a tenant is currently COVID-19 impacted, the landlord is unable to take action to terminate the tenancy for arrears accrued during the previous moratorium period until after 11 November 2021.

What tenants should do if they meet the eligibility criteria

1. Contact your agent or landlord to discuss options 

Contact your landlord or agent to negotiate a variation to your rental agreement.

The variation can include:

  • waiving rent for a period of time
  • reducing rent now and repaying this later in addition to your usual rent payments
  • repayment of existing arrears over a period of time
  • a combination of these.

Remember, you will need to pay at least 25% of your rent to remain eligible for the eviction protections unless you and the landlord have agreed in writing to a lesser rent payment.

To incentivise landlords to waive rent, a rebate of up to $4,500 is available to landlords for rent that is waived from 14 July 2021.

If you have arrears that occurred before this date you can still negotiate a repayment plan, but landlords cannot claim a rebate for rent waived that was payable before 14 July.

If you have attempted to negotiate a variation in your rent without success, Fair Trading can help.

  1. Complete an Application for rent negotiation form
  2. Attach it to your property enquiry

Do not provide any personal financial documentation with your enquiry. If necessary, this can be provided by you directly to your landlord or agent during negotiations.

2. Provide evidence

You will need to provide evidence to show you meet the eligibility requirements of a COVID-19 impacted tenant.

Evidence may include:

  • payslips or bank statements showing reduced income
  • documentation from an employer showing job termination/stand-down or reduced hours
  • evidence of a business closure or business records showing loss of takings
  • Centrelink confirmation of eligibility for financial assistance
  • medical certificates.

3. Provide consent to share your details

The landlord or agent can apply for payment to cover the agreed rent reduction. To do this, they must provide Fair Trading with a copy of the rent reduction agreement which includes your personal details (name, address, mobile phone and email).

The landlord or agent will also need your consent to share your details with the Department of Customer Service. This is required to ensure we comply with privacy laws.

To give your consent, complete the Consent to provide my details online form.

What landlords and agents should do

1. Negotiate with your tenants

Landlords and agents are encouraged to negotiate in good faith. To confirm a tenant is an eligible COVID impacted tenant you can request reasonable evidence such as:

  • payslips or bank statements showing reduced income
  • documentation from an employer showing job termination/stand-down or reduced hours
  • evidence of a business closure or business records showing loss of takings
  • Centrelink confirmation of eligibility for financial assistance
  • medical certificates.

You can consider a range of variations to the agreement including:

  • waiving rent for a period of time
  • reducing rent now and repaying this later in addition to usual rent payments
  • repayment of existing arrears over a period of time
  • a combination of these.

Note: Only rent waived from 14 July 2021 is eligible to be claimed as a payment.

COVID-19 impacted tenants must pay 25% of the usual rent to remain eligible for the eviction protections, unless you and the tenant agree to a lesser rent payment.

Important:

If you apply for the payment for reduced rent, you need to provide written consent from each tenant to provide their personal information to the NSW Department of Customer Service.

Complete the Consent to provide my details form and make sure it is signed by each tenant.

2. Apply for financial assistance

An online application for financial assistance is now available.

Only the landlord or their managing agent can claim the payment, which is paid direct to the landlord’s account or agent’s trust account as nominated by the applicant.

You will be asked to provide:

  • proof of the residential tenancy arrangement, including the rental bond number or, if no bond has been lodged, a copy of the residential tenancy agreement.

If you don’t have either, you can still apply. We will contact you to discuss your application and ask you to provide other proof that a tenancy agreement exists.

Payments made to managing agents are treated as any other rent payment and will be subject to the usual fees applied under the managing agency agreement.

In most instances, the payment will be received in a short period of time where the details of the tenancy agreement can be verified against rental bond data.  Other circumstances will take longer.

Information in community languages

A range of frequently asked questions is available in Arabic, Assyrian, Chinese simplified, Korean and Vietnamese.

An English version of these frequently asked questions is also available.