Labor calls on state government to help struggling landlords and tenants

The NSW Labor party is calling on the state government to help struggling tenants and landlords across the state.

The NSW Government is yet to pay $439 million of the $440 million of COVID-19 land tax relief funds it promised landlords and tenants who have experienced financial hardship.

The minister for finance and small business Damien Tudehope has confirmed only $659,374 of land tax has been waived, despite the Government announcing a $440 million fund in April.

Labor's opposition spokesman for finance and small business, Daniel Mookhey said his party was calling on the government to follow Victoria's lead and use the money to provide direct financial help to NSW tenants and landlords.

"The NSW Government's much heralded programme to help struggling landlords and tenants is a mirage," he said.

"Every tenant struggling to pay their rent, and every landlord struggling to pay their loans, should feel outraged. Basically, the Government has paid none of the money they promised.

"The Treasurer's failure to pay $439 million is a wasted opportunity to help tens-of-thousands of landlords and tenants desperately needing assistance."

Treasurer Dominic Perrottet welcomed the initiatives when they were first announced earlier this year.

He said the waiver would help businesses stay afloat and provide greater surety for tenants and landlords.

"This provides a way forward for tenants and landlords so they can reach an agreement during this difficult period and includes an incentive in the form of a land tax reduction." Mr Perrottet said.

"I thank the many landlords who are already supporting their tenants through this period and the banks for showing flexibility with deferring loan repayments - we are all in this together and need to work together."

The $440 million in land tax waivers or rebates was expected to be split approximately evenly between business and residential landlords.

However, NSW opposition treasurer Walt Secord said the "package [was] a cruel hoax".

"It has delivered virtually nothing to the few `mum and dad' investors paying land tax," he said.

"And every other `mum and dad' investor still gets nothing from Ms Berejeklian's Government."