Borderline: Doubts over whether SA should reopen to NSW, ACT amid Victoria outbreak
As Melbourne becomes a ghost city, Adelaide is starting to recover. But business leaders warn we can’t take that for granted – a second wave here would collapse businesses for good.
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Jobkeeper is propping up the wages of about 200,000 South Australians as doubts emerge over whether the state should reopen its borders to NSW and the ACT this month.
SA’s business community fears many companies and jobs would not survive a second lockdown if the virus returned.
JobKeeper payment analysis by federal Labor shows about 202,200 South Australians are receiving the $1500-a-fortnight wage subsidy.
That is based on Treasury data which shows about 53,200 SA businesses are using the payment and the average business has about 3.8 employees receiving JobKeeper. About 3.3 million workers nationwide are supported by the subsidy.
Opposition Leader Anthony Albanese is calling on the federal government to reveal its decision on extending the subsidy on Friday, rather than waiting to announce it in a budget update in two weeks.
He said with the nation in recession, the federal government “must not make things even worse” by withdrawing support too soon.
It is estimated JobKeeper is pumping $303 million a fortnight into the SA economy based on the number of workers likely receiving the subsidy.
Treasurer Josh Frydenberg and Prime Minister Scott Morrison have indicated there will be an extension to JobKeeper for businesses still needing the subsidy, but any changes will be announced on July 23.
Labor’s treasury spokesman Jim Chalmers said the delay was just “adding to the uncertainty”.
Meanwhile, Australian Hotels Association SA boss Ian Horne has warned many cafes, restaurants, hotels and other hospitality businesses would not survive if SA was forced into a second lockdown from the virus getting back into the state.
“People exhausted their reserves, they’re hanging on by their fingernails now and a significant percentage of the industry … would be terminal if it weren’t for JobKeeper,” Mr Horne said.
“We would want to open the borders but when we feel confident that it’s safe.”
NSW Premier Gladys Berejiklian on Thursday said the state would be on “high alert” for up to three weeks after shutting its border with Victoria, which on Thursday recorded 165 new cases.
Business SA chief executive Martin Haese said the state government should only reopen to NSW and the ACT “when it is absolutely safe to do so”. “A second wave will mean businesses will collapse for good, jobs will be lost for good and our economy will take even longer to recover,” Mr Haese said.
SA’s tourism sector also said borders should open “as soon as it is safe to do so”.
Tourism Industry Council SA boss Shaun de Bruyn said a second wave “would further damage business and consumer confidence and result in additional job losses and business uncertainty”.
Premier Steven Marshall backed the federal government extending JobKeeper beyond September and expected an update at National Cabinet on Friday.
“We’ve said we would like to lift the border restrictions with the ACT and New South Wales on July 20 and we’re still on track to deliver that,” Mr Marshall said.
“But we will continue to monitor whether there are any spikes in those jurisdictions before making a final decision closer to the day.
“We don’t want to go backwards in South Australia.”