Understanding the Six-Month Eviction Ban in NSW

The COVID-19 pandemic has caused severe economic damage across Australia, leaving many tenants struggling to pay their rent due to financial hardship. In response, the New South Wales Government amended the law on 25 April 2020 and introduced a series of emergency measures to support both landlords and tenants in navigating these challenging times together.

What Are the New Measures?

The key measure introduced is a six-month eviction ban, which means landlords cannot evict tenants affected by the pandemic due to rental arrears. During this period, landlords are prohibited from issuing a Termination Notice or applying for an Eviction Order through the NSW Civil and Administrative Tribunal (NCAT).

This regulation, known as the Residential Tenancies Amendment (COVID-19) Regulation 2020, took effect on 15 April 2020.

Under the new measures, landlords must engage with tenants in good faith to negotiate a solution, which may include rent reductions, payment plans, or other mutually agreed arrangements. If no agreement can be reached and the landlord has reasonable grounds to terminate the tenancy, they must issue a 60-day termination notice before applying to the Tribunal.

In other cases, landlords can only issue an eviction notice or apply to the Tribunal after the six-month period, provided they can demonstrate that they have engaged in meaningful negotiations with the affected tenant.

Who Is Eligible for Protection Under the New Measures?

To qualify for eviction protection, a household must provide evidence that they have been affected by COVID-19. This includes:

1. Loss of employment or reduced income – If one or more members of the household have lost their job or experienced a drop in income due to the pandemic.
2. Health-related impacts – If a household member is infected with COVID-19, needs to care for an infected family member, or is required to self-isolate, leading to reduced working hours.
3. Significant income reduction – If the household’s total weekly income (including government subsidies) has fallen by at least 25% due to the pandemic.

If tenants engage with their landlords in good faith, they will be protected under the six-month eviction ban.

However, if a tenant does not make reasonable efforts to negotiate or fails to comply with agreements, a landlord may serve a 60-day termination notice and pursue legal action after the six-month period.

Support for Landlords

Landlords who reduce rent for affected tenants may be eligible for land tax relief of up to 25%. The conditions for eligibility include proving financial hardship due to rental loss and demonstrating that the tenant qualifies for financial distress protection (i.e., a 25% reduction in household income).

If a tenant is not financially affected by COVID-19 or breaches the tenancy agreement for other reasons, the eviction ban does not apply.

These new regulations aim to strike a balance between protecting tenants facing genuine financial difficulties and ensuring landlords receive some level of compensation.

For further guidance on your rights and obligations as a landlord or tenant, seeking legal advice is highly recommended.