Victoria's new rent relief grants explained

Housing support is on the way for Victorians whose finances have taken a hit because of the state's COVID-19 lockdowns.

Minister for Housing Richard Wynne this morning announced a new rent relief program for Victorians who have lost income during lockdowns and are struggling to pay rent.

"We think that this is an important initiative, a targeted initiative, that is actually going to make a significant difference to people's lives," Mr Wynne said.

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How does it work?

Eligible renters will have a one-off payment of up to $1500 supplied directly to their landlord to cover their rent.

Who is eligible?

The grant is available to renters who lost income since 27 May 2021 as a result of the COVID pandemic and are paying more than 30 per cent of their income in rent.

Singles must earn less than $62,860 and couples must earn less than $94,300 to be eligible for the grant.

If you have more than $2000 in savings, you will not be eligible.

Renters applying fort he grant must also be able to provide proof of a rent reduction agreement after 27 May 2021.

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Who might be eligible?

The government has said eligible renters may include casual workers on holiday and working visas, international students, skilled visa holders, seasonal workers and refugee and temporary protection visa holders.

How do renters apply for the grant?

The government advises eligible renters to negotiate a rent reduction agreement with their agent, lessor or landlord, if they do not already have a rent reduction in place, before applying for the grant.

Once a negotiation has been arranged and confirmed renters can apply online at housing.vic.gov.au/rentrelief.

For more information on the grants, visit housing.vic.gov.au/help-renting/rentrelief.

The minister also announced the state was extending its homelessness program to June 30, 2022.

"As people would be aware we have been supporting many homeless and rough sleepers now for more than 12 months through this pandemic in hotel accommodation," Mr Wynne said.

He said the government was investing almost $45 million in the project, which was giving its users a pathway into long-term, sustainable accommodation.