Coronavirus: States to set relief terms for residential tenants

Residential renters will have to look to the states and territories for extra relief through the coronavirus pandemic.

Scott Morrison in Canberra on Tuesday. Picture: AAP

Residential renters will look to the states and territories for extra relief through the coronavirus pandemic after the national cabinet limited itself to providing a ­nationwide support plan for commercial tenants.

Scott Morrison unveiled a mandatory code of conduct for commercial landlords and their tenants on Tuesday aimed at stopping hundreds of businesses from closing their doors.

The Prime Minister said in Canberra that state and territory governments would now decide for themselves whether further laws were needed on residential tenancies beyond the six-month ban on evictions.

He said the national cabinet had examined how to “deal with the commercial issues” because they had a “broader national economic impact”.

“The residential tenancies are a matter for state and territory governments. And they’ll be addressing that specifically in each jurisdiction,” Mr Morrison said. “There is a moratorium on evictions, and then individual measures beyond that they believe are best addressed within each individual jurisdiction.”

He warned last week that a moratorium on evictions did not mean people would not be paying their rent. The federal government is hoping the moratorium, combined with the JobKeeper and Jobseeker payments, will keep tenants in their homes.

It is now expected the states and territories will go through their respective home renting laws to beef up protections for tenants. There are growing calls for landlords to be compensated through land tax cuts and exemptions.

The commercial code of conduct, which will be legislated and enacted by each state, will force landlords to reduce tenants’ rents in proportion to the fall in turnover they experience as a result of the pandemic. Landlords will be able to do this through the use of rent waivers and deferrals.

Tenants who make less than $50m and are eligible for the JobKeeper wage subsidy are eligible to be protected under the code.

National Retailers Association chief executive Dominique Lamb said the mandatory code would help small and medium businesses survive.

“The model announced by the Prime Minister today is sensible and proportionate. It will ensure — to the greatest degree possible — that businesses who suffer a major downturn have the best chance of surviving,” she said.

“And that is good for both tenants and landlords. Just as we want to see businesses survive to keep employing their staff, property owners will also want to see the retail sector survive.”

Shopping Centre Council of Australia chief Angus Nardi said major landlords were already starting to make deals with tenants and supporting them to stay afloat.

“A lot of the principles under the code the SCCA has already agreed to, including publicly and independently committing to not terminating leases,” he said.