Growing frustration is building between landlords and tenants as fears grew overnight that National Cabinet would fail to meet a deadline to find a solution.
Growing frustration is building between landlords and tenants as fears grew overnight that National Cabinet would fail to meet a deadline to find a solution.

PM says landlords and tenants need to ‘work this out’

SCOTT Morrison has urged landlords and tenants to "work out" stalemates on evictions as fears were growing National Cabinet would not meet Friday's deadline to find a solution.

Tenancy issues are a matter for states and a resolution is expected today, however, it is understood not all states may be ready to announce their plans after the National Cabinet meets.

Frustration is growing with the delay as a growing financial chasm between the states and Commonwealth starts to test patience.

The Morrison Government has unveiled $300 billion in measures to fight coronavirus while collectively the states have coughed up just $15 billion.

Treasurer Josh Frydenberg and Prime Minister Scott Morrison. Picture: AAP/Mick Tsikas
Treasurer Josh Frydenberg and Prime Minister Scott Morrison. Picture: AAP/Mick Tsikas

During the Federal election, Treasurer Josh Frydenberg railed against Labor's plan to reform negative gearing, revealing, "one in every five people who negative gear a property across the country live in Queensland".

Most of them were ordinary mums and dads, meaning those families now face a significant loss of income.

Pressure is mounting on states to dump land taxes and implement policies for renters and business owners.

As hip pockets have been zapped by the coronavirus, renters and businesses have never been at more odds with landlords.

 

 

It was heightened after Mr Morrison said last week, "States and territories will be moving to put a moratorium on evictions of persons as a result of financial distress if they are unable to meet their commitments.

"And so there will be a moratorium on evictions for the next six months under those rental arrangements."

However, yesterday, Mr Morrison appeared to shift the emphasis on finding a solution on to landlords and tenants.

"I would urge landlords and tenants to work this out, " Mr Morrison said.

 

Prime Minister Scott Morrison says tenants and landlords need to “work it out”. Picture: Gary Ramage
Prime Minister Scott Morrison says tenants and landlords need to “work it out”. Picture: Gary Ramage

 

"They're going to need each other on the other side.

"I tell you what the great incentive for a landlord is, if that tenant goes bust and can't pay rent.

"Then they've got no one paying rent and they'll be looking for a tenant in a very bad market six months from now. So my advice to landlords is sit down with your tenants and work it out."

Queensland Treasurer Jackie Trad said yesterday she understood people were "incredibly fearful" that they may not be able to pay their rent and pledged to backdate the eviction moratorium in Queensland to March 29.


The states are looking at what to do to settle issues for residential tenancies and for business:

  • Temporary moratoriums on evictions if rent isn't paid for on commercial tenancies hit by "severe rental distress" due to coronavirus
  • Reducing or waiving rental payments for a set time for affected tenants
  • Tenants could ask to end leases or seek out mediation on grounds of "financial distress"
  • Landlords and tenants not badly impacted by coronavirus to honour their rental agreements

 

Originally published as PM says landlords and tenants need to 'work this out'


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