SA businesses want JobKeeper, other supports beyond March

A new survey shows business confidence is slowly creeping back but that more certainty is desperately needed by SA industries hammered by COVID-19.

Almost 70 per cent of South Australian businesses want targeted support measures such as JobKeeper to continue beyond late March.

Local businesses are growing in confidence, but so is concern around debt repayments and continuing COVID-19 uncertainty.

A new survey by Business SA today reveals an overwhelming 68.3 per cent of all businesses support further assistance for those industry sectors hit hardest by ongoing COVID-19 restrictions.

“With uncertainty around the possibility of further clusters and snap lockdowns still looming, businesses will still need a safety net,” Business SA’s policy director Andrew McKenna said.

“While the whole state needs to remain safe, the business community cannot continue to wear the lion’s share of the financial burden.

“We need both state and federal governments thinking about extending the support available to businesses because the impact of COVID-19 doesn’t end of March 28 when JobKeeper payments end.

Prime Minister Scott Morrison is tipped to reveal the fate of Jobkeeper recipients this week. Picture: Jenny Evans/Getty Images

“We also need to think about short-term incentives introduced by other states, like WA and Victoria, to support businesses severely impacted.”

Almost two out of three tourism and accommodation and food service businesses, as well as the education sector, continue to experience revenue declines of 50 per cent or more.

The survey for the December quarter reported the number of SA businesses on JobKeeper has almost halved over the past 12 months, with only 30 per cent of businesses on, or expecting to be on, the second tranche of JobKeeper 2.0.

Across the state, 233,500 people were on JobKeeper payments of $1200 or $750, according to figures released by the ABS this month. The state also recorded the nation’s highest unemployment rate at 7.1 per cent in January, with more than 12,000 jobs lost and number of unemployed increasing to 64,100.

There are predictions up to another 27,000 tourism industry jobs will be at risk when the wage subsidy ends unless new supports are put in place, including a $1000-$1500 per fortnight wage subsidy for employees proposed by Tourism & Transport Forum Australia.

Despite the ongoing uncertainty, SA business confidence has continued to rally, up 13 points to 108.3 points, the survey of close to 250 businesses found. A third of businesses reported that 2020 was their best ever financial performance, or the best in five years.

“South Australia has well and truly put the worst behind it, with business confidence and conditions above the 10-year average,” Mr McKenna said.

“However, an erratic and non-uniform approach to managing the crisis, like snap lockdowns and border closures, impact everyone.”

For 15 per cent of businesses, turnover was slashed by more than 50 per cent. “All in all, South Australia is tracking well but our current business confidence is underlined with caution,” he said.

It comes as a new, permanent rate of JobSeeker is expected to be announced this week, ahead of the temporary $150-a-fortnight coronavirus supplement ending in late March. Social services groups want the payment to be raised to at least $65-a-day instead of dropping back to its pre-COVID-19 level of $40.

The Federal Government has been considering proposals to permanently increase the rate but has also emphasised the need to get 1.23 million jobseekers into work.

- with Claire Bickers