Temporary rules to protect renters from being evicted from their homes and business properties

The national cabinet has agreed to create temporary rules to make it harder for landlords to evict tenants.

Scott Morrison said landlords would need to take a hit to help the nation get through the crisis in the best economic shape possible. Picture: iStock

Renters will be given leeway on missing their payments during the coronavirus pandemic, after the national cabinet agreed to create temporary rules to make it harder for landlords to evict tenants.

The bipartisan cabinet of federal and state leaders agreed at a meeting on Friday that tenants in residential and commercial buildings needed an extra safety net over the next six months amid expectations of a recession.

Scott Morrison said the rules would be formulated and implemented by state and territory governments. The process is being led by Western Australia and NSW.

“(Governments) are working to identify how relief can be provided for tenants in both commercial tenancies and residential tenancies to ensure that in hardship ... there will be relief that will be available and ensuring the tenancy legislation is protecting those tenants over the next six months at least,” the Prime Minister said.

“That work will be led by Western Australia, together with NSW, working with all the other states and territories to bring back some model rules that can be applied in hardship cases.”

The move is in line with the UK, where the government this week announced housing tenants who missed payments could not be evicted for the next three months.

Mr Morrison said landlords would need to take a hit to help the nation get through the crisis in the best economic shape possible.

“I know that will mean something for landlords, just as the decision taken today means some­thing for banks, just like the decisions we have already taken as a commonwealth government means things for our balance sheets,” he said. “It will also mean something for those who, sadly, might be stood down from their employment and have to look at their annual leave arrangements and sick leave arrangements.

“All Australians are going to be making sacrifices in the months ahead and everyone does have that role to play, and that will include landlords.”

Council of Small Business Organisations Australia chief executive Peter Strong this week accused major retail landlords of failing to accommodate shop owners who were struggling because of the coronavirus crisis.

“They are acting as if nothing has happened. I’m hearing from members they are struggling and the big landlords like Westfield are not listening to them. There is no compassion,” Mr Strong said.

However, Property Council of Australia chief Ken Morrison said state and territory governments should legislate tax relief to help tenants make their payments.

“Australian governments collected $10.4bn in land tax last year, the overwhelming majority of which is paid by commercial property owners,” he said. “(They) should provide land tax relief — legislated so that it must be passed through to tenants. Then that can help support struggling tenants.”

Tenants Union of NSW senior policy officer Leo Patterson Ross said landlords should be barred from evicting tenants who miss payments during the pandemic.