The State Government has announced $440 million in relief for renters and landlords affected by Government-enforced COVID-19 restrictions.

Key points: The State Government is allocating $220 million to residential renters and landlords

The State Government is allocating $220 million to residential renters and landlords A further $220 million will go towards shops, gyms, hairdressers and businesses affected by COVID-19

A further $220 million will go towards shops, gyms, hairdressers and businesses affected by COVID-19 A two-month moratorium is in place on forced evictions for those suffering financial hardship due to coronavirus

Half of that money has been allocated to residential renters — a group that had not yet received financial support during the pandemic.

The package is targeted at keeping people in rentals over the next six months.

The Government has ordered a six-month moratorium on new forced evictions if the tenant is in rental arrears because they are suffering financial hardship due to coronavirus.

It applies to tenants who have lost 25 per cent or more of their income.

Under the scheme, a landlord or managing agent must enter into negotiations with a tenant who is struggling to make rental payments.

"We know many people are worried about meeting their financial commitments at the moment," Better Regulation Minister Kevin Anderson said.

"That is why we need more stability for tenants and landlords."

The Minister said that as a sign these new measures were not optional, an interim 60-day moratorium would be in place for new applications to the NSW Civil and Administrative Tribunal for forced evictions over COVID-19-related rent arrears.

Tenants will be protected from eviction until the tribunal is satisfied that negotiations have been finalised.

But they will have to repay the rent eventually, as anything unpaid will accrue as arrears during this period.

The Government aims to provide relief to landlords too, by waiving land tax or providing a rebate of up to 25 per cent if they are accommodating tenants under financial stress.

Landlords that have already filed to evict their tenants will have to wait 60 days for their applications to be processed.

When the 60-day moratorium has come to an end, landlords will be able to recover their properties if they are in financial hardship, while tenants will not get a black mark against their names.

The Government is allocating $220 million to this support package while another $220 million will go towards commercial rent.

It applies to businesses such as shops, cafes, gyms, hairdressers, restaurants and offices that are affected by coronavirus restrictions.

The Government said landlords were eligible for a land tax concession of up to 25 per cent for the rest of this calendar year.

A further land tax deferral for any outstanding amounts for a three-month period will also be offered to landlords who claim the land tax concession.

The commercial landlords of those businesses will be offered the land tax concession if they pass the savings on to tenants through a rent reduction.

These new arrangements act on the code of conduct agreed to by the National Cabinet earlier this month.

Under the code, a "good faith" leasing principle is applied between landlords and tenants that are eligible for the Commonwealth JobKeeper program.

It applies to businesses with a turnover of less than $50 million that have at least a 30 per cent reduction in revenue as a result of the COVID-19 pandemic.

"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," NSW Treasurer Dominic Perrottet said.

The Tenants Union cautiously welcomed the package but was concerned some people would be left behind.

Union spokesperson Leo Patterson Ross said his major concerns were the income-loss threshold and attempts by landlords to circumvent the moratorium by using alternative reasons to evict renters.

"What will the measures be to ensure that landlords and agents and tenants can all sit down and have a meaningful negotiation? Because it would be no good if it went through the process and the tenants still got evicted and still had a large rent arrears debt," he said.

"Some parts of the full package may need to go back to Parliament, but the Government can issue an emergency regulation this week to address the eviction moratorium and get things moving."