The federal government had announced last week that a mandatory code of conduct for commercial tenancies would be legislated across all states and territories.
Highlights:
- Many small business owners are not able to cover their costs due to the lockdown.
- The Federal Government has announced several measures to help those who are in financial distress.
The news rules will cover commercial tenancies where the tenant or landlord is eligible for the JobKeeper Payment and has a turnover of $50 million or less.
Landlords will have to lower commercial rents in line with the company’s falling revenue and tenants must not break the lease under the new rules.
However, many small business owners are not eligible for the JobKeeper payment, and their landlords are not offering any respite.
Source: Facebook/Scott Morrison
Vinod Kumar Patel, who runs a small café in Melbourne, says his landlord has refused to lower the rent.
“We had written to the agent requesting the relief in the rent. But, they say nothing can be done, and we are bound to pay the rent as per the lease agreement,” Mr Patel told SBS Hindi.
Mr Patel runs his café along with his family members and does not have any workers.
"My cafe is open but the revenue is just 10 per cent of what it used to be."
“Members of my family work with me, and they are not employed so we cannot claim JobKeeper’s payment. We have received a one-time payment of 750 dollars which is not enough to cover the expenses,” said Mr Patel.
He claims the agent is badgering him for rent and he is working as a courier to pay his bills.
Prime Minister Scott Morrison had said earlier last week that landlords and tenants should sit together to find a middle path.
Finance Minister Mathias Corman said the code of conduct would include scope for landlords to receive land tax relief or deferral.
The coronavirus has thrown small businesses into crisis, with many owners sending workers home as customers vanish. Source: AAP
“We are trying to do our bit, providing the right incentives along the way,” the minister said.
“But we do also expect that landlords will do the right thing in relation to those tenants who are in financial distress.”
The prime minister has already announced a six-month moratorium on evictions for people in financial distress and hardship.
The tenants’ union has argued governments need to step in to facilitate rent relief.
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