The state government has announced new grants to help struggling renters.

The COVID-19 Rent Relief Grant program will help renters who are experiencing rental hardship due to the coronavirus pandemic.

Grants of up to $1500 will provide direct financial support to renters by contributing to the cost of their rent directly to their landlord on their behalf.

The one-off payment is specifically for renters paying more than 30 per cent of their income in rent who are living in a primary residence.

Grants will be targeted at those who have lost an income of 20 per cent or more due to the pandemic.

There is an annual income limit of $62,860 for singles and $94,300 for couples, and to be eligible applicants can’t have more than $2000 in savings.

The landlord and renter will also need to enter into a rent reduction agreement for a period after May 27, 2021.

To find out if you’re eligible, visit housing.vic.gov.au/help-renting/rentrelief