LAURA JAYES:
Welcome back to First Edition. Well it is an historic day for the Australian Parliament. A $130 billion JobKeeper package will be passed by the end of today. Joining me now is the Housing Minister and Assistant Treasurer, Michael Sukkar, thank you for your time. As I said, a very big day, $130 billion being spent, the centrepiece piece really of a $240 billion spend. Will it be enough to save jobs and really keep the economy going on the other side of this thing, whenever that may be?
MINISTER SUKKAR:
Well, Laura, great to be with you. I think early indications, with over 700,000 businesses nominating that they will be seeking the JobKeeper scheme, indicate that this is providing and will provide the support that businesses need to stay connected to their employees and workforce but importantly, to keep that essential business structure together during this very difficult time. Time will only tell but, Laura, as you've seen and as Australians have seen, whether it was the first package which supported small businesses and increased the safety net, whether it's the second package, which ensured that our financial system was robust and provided more support for small and medium enterprises and now of course, the third tranche, which includes the $130 billion JobKeeper package. We are throwing everything at this and as I said, early signs are, with the enthusiastic take up of over 700,000 businesses, that the JobKeeper programme has met the mark for those businesses.
LAURA JAYES:
For those who can't access JobKeeper, will there be access to the JobSeeker allowance or do you accept that some people will still fall through the cracks?
MINISTER SUKKAR:
Well no, Laura. The reality is our social safety net means that if you're somebody that needs assistance, whether that be through JobSeeker, which of course now with the Coronavirus Supplement is somewhere in the order of $1,100 a fortnight and that also entitles individuals to additional supports, potentially including rental assistance and other supports, or the JobKeeper programme, which is $1,500 a fortnight, which is paid effectively through employers to their employees. One way or another, our safety net, which we have absolutely bolstered throughout this programme, is ensuring that all Australians are protected or if they're working, in a way that ensures that they can stay connected to those businesses, stay employed and come out the other side in stronger shape.
LAURA JAYES:
Do you know when that other side will be just yet?
MINISTER SUKKAR:
Sorry, Laura, I missed that?
LAURA JAYES:
Do you know when that other side will be just yet? There are reports that perhaps some of these - in New South Wales at least - some of these social economic restrictions may start to be lifted in the months ahead?
MINISTER SUKKAR:
Well I think, Laura, look, no one knows when that other side will be. I think what is extraordinarily encouraging, particularly when you compare Australia to other jurisdictions is that thankfully because the Australian people have responded in the way that, I suppose many of us aren't surprised about, but they've responded in such an emphatic way with social distancing and staying at home that we have seen that the incidents of new cases reducing. We can't be complacent, certainly not with the Easter weekend coming up. I mean, that is a very critical time for us to make sure that we lock in the gains we've made but no doubt we are in as good a position as any country in the world because we have taken these early steps. But in the end, when that other side actually is, only time will tell, Laura.
LAURA JAYES:
Now there's agreement on a Code Of Conduct between landlords and tenants at a commercial level. How will it work and is that effective immediately?
MINISTER SUKKAR:
So, the code of conduct, which has been agreed by the National Cabinet will now need to be legislated by each of the States and Territories who obviously are the level of government that govern tenancies of this kind. I mean, in essence, the principles of the national code mean that if you're a tenant who is in financial distress as essentially defined by the JobKeeper programme, so your turn over has at least reduced by 30%, this is a framework to bring property owners and tenants together to make sure that everybody is wearing a little bit of the pain. There's a moratorium on evictions so a business can't be evicted during this time but equally, that the tenant is required to adhere to the terms of the lease and not end the lease early. But importantly, a framework that means any reductions in rents which would necessarily have to flow to a tenant include deferrals and waivers and the waivers being at least 50% of the reduction because as part of the hibernation strategy, Laura, we don't want businesses coming out the other side of the pandemic carrying loads and loads of accumulated debt, so to speak, that's just been deferred. So there needs to be a waiver because if there aren't waivers, then that debt will just burden a small business and even if we had been able to hibernate it or press pause for it to get through this tough time, it'll be extraordinarily difficult for it to continue. So, this is a framework, it's not too prescriptive because every lease is a little bit different, but it's a way of bringing the parties together to make sure that they negotiate in good faith.
LAURA JAYES:
Well now that this is in place, when do you expect the States to move on to things like land tax?
MINISTER SUKKAR:
Well, Laura, I'd expect that the legislation with respect to these matters at each of the state and territory levels would simultaneously include any other measures and incentives that are being put in place by those jurisdictions, particularly to help property owners and to make sure that the property owners pass those benefits through, whether that's land tax concessions, rate concessions or insurance charges, whatever it might be. I would have thought, although in the end it will be up to each state and territory to decide, but I would have thought they would do those simultaneously. So on one hand, putting together the framework that's been agreed by the National Cabinet on how these sorts of negotiations need to take place, but putting on the table, the carrot that's going to, in a sense, give the relief to the property owner, ensuring that that relief does then flow through to the tenant.
LAURA JAYES:
Well we will see some of those moves made by the states in coming days and we'll see that package, $130 billion, pass through the Parliament today. Michael Sukkar, thank you.
MINISTER SUKKAR:
Nice to be with you, Laura.