Ms PATTEN (Northern Metropolitan) (18:33): My adjournment matter tonight is for the Minister for Consumer Affairs, Gaming and Liquor Regulation, and the action I seek is for the minister to halt all eviction proceedings in Victoria during the state of emergency.
As more and more of public life in Victoria shuts down—schools, events, bars, restaurants, swimming pools—and the economic ripple effects of the coronavirus epidemic widen, a growing number of jurisdictions across the globe are moving to protect people from becoming homeless.
In the United States, cities like San Francisco, Seattle, Los Angeles and Boston, as well as a number of states including New York, Massachusetts and Kentucky, have temporarily halted eviction proceedings. These measures are now being adopted in other cities in Europe.
If a worker loses their job or if their take-home pay is significantly reduced because of something out of their control, how do they pay the rent? We cannot simply rely on landlords to be the good guys in this situation. Of course, there is a knock-on effect to the property owner, and I understand that. Landlords often rely on rental payments to service their mortgage.
However, a number of major Australian financial institutions have come forward to say that they will work with customers who are having mortgage payment problems. The risk is real. People will become homeless as a result of coronavirus, and the minister can and rightfully should step in.
So I ask the minister to mandate that all eviction proceedings in Victoria during the state of emergency be halted so that some of the most vulnerable in our community can get some peace of mind.
Fiona Patten MP
Leader of Reason
Member for Northern Metropolitan Region
Adjournment matter raised 17/3/20
Answer
Ms KAIROUZ (Kororoit—Minister for Consumer Affairs, Gaming and Liquor Regulation, Minister for Suburban Development):
The Victorian Government is aware of the enormous impact of COVID-19 and the subsequent restriction of operation of certain businesses and impact on workers and consumers, particularly those on low incomes, the vulnerable and disadvantaged, and those already experiencing financial hardship.
The Victorian Government recently announced new laws to protect tenants, landlords and the rental market during the coronavirus (COVID-19) crisis. On 24 April 2020, the COVID-19 Legislation Amendment (Emergency Measures) Act 2020 was proclaimed.
The Act introduces an eviction moratorium from 29 March 2020, meaning that evictions are only possible in limited circumstances and increases in rent are not allowed for a six-month period. A ‘front door’ service through Consumer Affairs Victoria (CAV) is assessing all rental eviction matters and providing support to tenants and landlords to reach agreement to a rent reduction. Where dispute resolution services are determined to be necessary, a referral will be made to a new dispute resolution service through Dispute Settlement Centre Victoria.
The Government has also introduced complementary measures for eligible tenants and landlords who reach agreement to a rent reduction including rent relief grants through the Department of Health and Human Services for eligible tenants experiencing COVID-19 related financial hardship, and land tax relief for landlords through the State Revenue Office.
The eviction moratorium does not mean that tenants can stop paying rent. Where tenants are suffering financial hardship due to COVID-19, landlords and tenants should negotiate in good faith to agree a rent reduction. Information and tools to help tenants and landlords to reach agreement can be found at www.consumer.vic.gov.au/resources-and-tools/advice-in-a-disaster/coronavirus-covid19-and-your-rights.
If tenants and landlords need more support or cannot reach an agreement, they should contact CAV. Where necessary, referrals can be made to the new dispute resolution service to help them agree or to make a binding order when they cannot.
These measures will aim to ensure that renters who are at risk of homelessness are able stay in their rented homes and that tenancies do not end unnecessarily as a result of the COVID-19 crisis.
