To Australian Federal and State Governments,

We the undersigned demand that Federal and State Governments take steps to immediately (in the following order of importance);

1. Cancel residential rental obligations for the duration of the crisis.
2. Pause mortgage for owner occupiers under the same compassionate grounds as the renters.
3. Pause mortgage obligations for landlords who are affected by non-payment of rent.

We are in a time of unprecedented crisis, unemployment and economic uncertainty. According to current medical and epidemiological advice- the grim reality is that this will get a lot worse before it gets better.

The job losses are unprecedented, the lines around Centrelink offices are reminiscent of the Great Depression and the empty shelves are a sight most Australian’s have never experienced before. Many of the world’s leaders have likened this situation to war.

Social distancing, self isolation- all the measures advised by the Federal Government are futile if there are no four walls of a home to practice them in. The homes that we live in are our front line of defence against this disease and many are facing the prospect of homelessness due to unforeseen lost wages. There are already signs that people will not be able to pay their rent and that there will be mortgage defaults. The government has taken some steps to mitigate the damage but we must ensure that the increased social security payments do not simply end up as rent, which in turn ends up paying a mortgage to the banks- who will be profiting while Australian people starve without a home. 

Why this is such an issue

Renters need the most help. About one-third of private renters are low-income households in housing stress (the bottom 40% of household pay more than 30% of income in rent). 30% don’t have $500 saved for an emergency. On top of that, about 20% of mortgagees are already in mortgage stress. This is a humanitarian disaster waiting to happen.

About A$40 billion is due to flow out of Australia’s 2.5 million private renter households and into 1.3 million landlord households. Landlord households have, on average, much higher incomes and wealth than other households.

Billions more are due to flow, as principal and interest payments, from 3.4 million owner-occupier mortgagees to the banks. Australia’s big four banks last week announced borrowers could “pause” their payments as a pandemic hardship measure. But mortgagees should be aware interest not paid is capitalised into the debt, so they will have more to pay off after the “pause” ends.

An evicted household might pile in with family or friends, disrupting social isolation and contributing to unsanitary overcrowding. It’s a challenge people already living in share housing will have to manage. Across Australia, 81,000 dwellings are already overcrowded, 51,000 of these “severely overcrowded”.

People who have been evicted might move through temporary accommodation, and through real estate offices, social services and doctors’ rooms making urgent applications. Or they may be shut out of assistance, and sleeping rough. With limited space and facilities to wash hands and personal effects, the risk of transmission will grow.

There is already precedent of other jurisdictions doing this- most notably the United Kingdom and various states in the United States.

Conclusion

If we are war, we must mobilise like nations do at war time and do whatever needs to be done to protect the lives, health and prosperity of the Australian people. In that order. We must bail out the Australian people before the banks and corporations. 

 

Yours Faithfully,

The Undersigned