COVID-19 - Client Update 29/3/2020

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COVID-19 - Client Update 29/3/2020

29/3/2020 - Moratorium on Evictions

(A temporary prohibition of an activity/a suspension of activity ie. suspension of Evictions in Residential and Commercial Tenancies)

 

In tonight's announcement it was announced that there will be a 6 month moratorium on evictions. I have copied below the Press Release  :

 

"Now, the National Cabinet also considered this evening issues relating to commercial tenancies as well as residential tenancies and they agreed to a series of principles which are released through the statement. But the most significant of those is that 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. Now, there is a lot more work to be done here and my message to tenants, particularly commercial tenants and commercial landlords, is a very straightforward one."

 

"We need you to sit down, talk to each other and work this out about looking at the businesses which have been closed, businesses that may have had a significant reduction in their revenues and we need landlords and tenants to sit down and come up with arrangements that enable them to get through this crisis so on the other side, the landlord has a tenant, which is a business that can pay rent and the business is a business that can re-emerge on the other side of this and be able to go on and employ people on the other side of these arrangements. And we want the banks to help them achieve this outcome. We want people to sit down and work this out. We will be working on measures that will be encouraging you to do just that and to support you to do just that, but also to ensure that if you aren't going to engage in that sort of cooperative activity between banks, between tenants and between landlords, then the sort of support that you might otherwise expect to receive, you will not receive. This is part of the hibernation approach where we want people bespoke, customised to their own circumstances to sit down and work these things out. There is no rulebook for this. We are in uncharted territory, but the goal should be shared. And that is a business that can reopen on the other side, not weighed down by excessive debts because of rental arrears. A landlord that has a tenant so they can continue into the future to be able to support the investments that they have made and banks that have clients, both the landlords and the businesses. The three of them working together to ensure those businesses can get through and be there on the other side."

 

Click here for tonight's announcement : https://www.pm.gov.au/media/press-conference-australian-parliament-house-act-13