The government has decided to extend financial support packages for the state's tenants and landlords when the rental eviction moratorium ends this Sunday.
The moratorium was put in place at the height of the COVID-19 pandemic in Tasmania to prevent tenants from eviction due to non-payment of rent and to stop rent price increases.
Building Minister Elise Archer said tenants and landlords will now be supported by an extension to the Rent Relief Fund and Landlord Support Fund to March 31.
"More than $2.8 million in support has already been paid to more than 3400 landlords and tenants who have been financially impacted by COVID-19, representing approximately 81 per cent of rent arrears," she said.
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Ms Archer said landlords would be able to recoup remaining rental arrears through payment plan orders issued by the Residential Tenancy Commissioner.
Ms Archer said this did not override a tenant's obligation to make regular rental payments, rather outlined a schedule for repayments in addition to normal rent obligations.
She said such an order would prevent them from eviction if they complied with the order.
Greens leader Cassy O'Connor said financial assistance wasn't enough and eviction and rent freeze protections needed to be extended.
"Otherwise what we're going to see is rent increases that are almost immediate and a higher potential for evictions for people who are already suffering during this pandemic," she said.
"Tenants are already being asked to sign new leases with rent increases embedded in them.
"The social and economic impacts of the pandemic are still being felt in Tasmania."
Labor's housing spokeswoman Alison Standen said the government's failure to extend the eviction moratorium would force families into homelessness due to the state's lack of social housing.
She said there were nearly 3600 families waiting to be homed in public housing.
"Priority applicants for social housing will have to wait an average of 64 weeks and others will have to wait much longer," Ms Standen said.
Tenants Union of Tasmania principal solicitor Ben Bartl said an extension of the financial assistance scheme for renters, and the ability for a tenant to access the scheme more than once, would ensure less tenants would have to worry about eviction.
"However, we are concerned that with rents already having returned to pre-COVID-19 levels, many tenants will face rent increases for the first time in almost a year at the same time as Tasmania has significantly higher unemployment and our economy remains depressed," he said.
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