It strikes me that the Govt is not addressing COVID-19 rent and mortgage relief in an appropriate fashion. So far the statements look like people will have to either pay it back after COVID-19 or strip their Super Funds.
One way to avoid this would be to “press pause” on all such contracts, by legislating a form of “Force Majeure” to apply to all rental, mortgage & related party contracts.
For who have lost or had their income stream reduced, renters would not pay rent, those with mortgages would not pay the bank, and banks and lenders would not pay those they owe money to.
An example, a parent previously earning $1,500.00 per week, now earning $750.00 per week is not eligible for Newstart but is still paying $650.00 in rent.
This press pause (Force Majeure) is a single strike initiative will mean the pain is shared equally, whereas the Govt’s proposal is all the pain is shouldered by the renter.
There is a lot of tinkering around the edges, whereas a press pause (Force Majeure) would be more all encompassing.
Bearing in mind renters are often the low waged, you know all those on the front lines of COVID-19, Nurses, Cleaners, Supermarket workers etc, all deserve assistance too.
Under current foreshadowed arrangements there is the reality that post COVID-19 rent arrears will be immediately repayable by people with no income leading to further homelessness and stresses on society and the economy.
Whereas with a force majeure, once COVID-19 is over, regular payments resume, with no one owing anyone any back payments.
Whereas under the current arrangements should the tenant have no option but to default the landlord mortage holder still has to pay the bank or lender.
Under a properly legislated Force Majeure, all parties with share the burden rather than just the renters and the landlords.
Coronavirus COVID-19: The legal impact on force majeure events (Australia).
So I am wondering if the rent-mortgage-bank chain of payments can be taken care of under the Force Majeure laws here, or if something has to be done in Parliament to make them fit ?
If so does our society have any Parliamentarians willing to calling for a Force Majeure ?
As it is more all encompassing than just calling for “no evictions” and the other foreshadowed limited proposals by Government, that are addressing only the concerns of a few rather than the good of the whole of society.