The National Cabinet has agreed to prohibit evictions of commercial and residential tenants over the next six months for those who have suffered financial distress and are unable to pay their rent due to COVID-19.
In its latest announcement of measures, the government stated that there needed to be some intervention on commercial tenancies.
Alongside the moratorium of eviction for non-payment of rent, the National Cabinet - endorsed by Treasurers - further agreed on a set of principles to guide and underpin the application of this intervention to commercial tenancy agreements:
- Tenants and landlords are encouraged to agree on rent relief or temporary amendments to the lease
- The reduction or waiver of rental payment for a defined period for impacted tenants
- The ability for tenants to terminate leases and/or seek mediation or conciliation on the grounds of financial distress
- Commercial property owners should ensure that any benefits received in respect of their properties should also benefit their tenants in proportion to the economic impact caused by coronavirus
- Landlords and tenants not significantly affected by coronavirus are expected to honour their lease and rental agreements
- Cost-sharing or deferral of losses between landlords and tenants, with Commonwealth, state and territory governments, local government and financial institutions to consider mechanisms to provide assistance
In a statement, the Morrison Government encouraged landlords and tenants to discuss strategies to ensure survival.
"As part of its work on helping businesses hibernate, National Cabinet agreed that short-term intervention is needed for commercial tenancies.
"Work on this has begun, but there is more to do.
"Commercial tenants, landlords and financial institutions are encouraged to sit down together to find a way through to ensure that businesses can survive and be there on the other side."
The National Cabinet will meet again on March 30.