Relief could soon be on the way for renters who face being unable to pay their rent because of the coronavirus.
States and Territories are working on a package following a meeting of the National Cabinet today.
It comes as companies across the country start laying off or standing down workers as cash flow dries up.
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Reserve Bank Governor Philip Lowe today briefed the Prime Minister and State and Territory leaders on the economic fallout of the virus and the RBA’s measures announced yesterday.
“Further work will be done on identifying how relief can be provided for tenants in both commercial and residential tenancies to ensure that in hardship conditions, there will be relief that will be made available and ensuring that tenancy legislation is protecting those tenants over the next six months at least, ” Mr Morrison said.
“That work will be done by states and territories, as it is a state and territory matter, and that work will be led by Western Australia, together with New South Wales, working with all the other states and territories, to bring back some model rules that can be applied in hardship cases.”
Mr Morrison conceded that may have an adverse effect on landlords, but says they will need to make sacrifices.
“Now I know that will mean something for landlords, just as the decision taken today means something for banks, just like the decision taken as the Commonwealth Government means something for our balance sheet.
“It will also mean something for those who sadly, will be stood down from their employment and will have to look at their annual leave arrangements and sick leave arrangements.
“All Australians are doing to be making sacrifices obviously in the months ahead and everyone does have that role to play and that will include landlords at the end of the day.”
Federal Budget delayed
The government has also postponed the Federal Budget until the first Tuesday in October.
It was due to be handed down in mid-May but has been pushed back.
States and Territories will also delay their budgets.
“It was agreed today that putting budgets together at this time, with the great uncertainty that exists, is not something that any commonwealth or state government should be doing,” The Prime Minister said
Aged Care boost
The Prime Minister has announced a further $444.6 million for aged care facilities, including cash for nursing homes to retain staff during the crisis.
The money will go towards retention bonuses, supporting the continuity of the workforce and to keep facilities financially viable.
Funding would also be directed to services including Meals on Wheels.