JobKeeper end date: Worst NSW suburbs affected

These are the suburbs where Sydneysiders will cop the most financial pain when JobKeeper wage subsidies get switched off.

Sydney’s CBD will be the hardest-hit area of New South Wales when JobKeeper wage subsidies get switched off from March 28.

More than 6400 CBD businesses were still receiving JobKeeper in February, along with tens of thousands more across the state, according to new data from Treasury and the Australian Taxation Office.

Postcode 2170 – including Liverpool and Chipping Norton – was the second most affected area with 2264 JobKeeper businesses, followed by postcode 2145, which includes Girraween and Wentworthville.

Other Western Sydney suburbs dominate the 10 most affected postcodes, while Gosford and surrounding towns is the only regional area on the list.

Forecasts of total job losses from JobKeeper’s shutdown have ranged from 100,000 to 250,000, and last week’s $1.2 billion Federal Government program of half-price airfares to tourist destinations has been criticised as doing nothing for other struggling sectors.

AMP Capital chief economist Shane Olive estimates about 150,000 jobs will disappear nationally.

Dr Oliver said CBDs were “nowhere near normal” but suburban shopping centres were packed as people still worked from home and were wary of public transport.

“City physiotherapists, sandwich shops, restaurants and bars have all been pretty badly hit,” he said.

More than 95 per cent of businesses that enrolled in JobKeeper are sole traders or small businesses employing fewer than six people.

KPMG chief economist Brendan Rynne said city food retailers, newsagents and clothing stores had seen “trade disappear, and it’s only now starting to recover”.

Client Julie Rowe with Bonnie McCarthy, manager of Blown Lux, at Barangaroo. Picture: Justin Lloyd.

Dr Rynne said some businesses enjoyed improved profits while their largest expense – wages – was subsidised by taxpayers.

“But underperforming businesses that have been held up by government support are going to find it difficult to stand on their own two feet, and we are going to see some business closures,” he said.

Research group Roy Morgan has been examining the movement of people in CBDs during the pandemic CEO Michele Levine said numbers were still “well down” on pre-COVID levels.

“Unsurprisingly the largest decline has been in the Melbourne CBD followed by the Sydney CBD,” she said.

“Melbourne CBD was down 72 per cent on a year ago during January and Sydney CBD was down 66 per cent. These numbers have continued to recover during the last few weeks but are still well below their levels of early 2020.”

About 150,000 jobs are expected to disappear nationally. Picture: NCA NewsWire/Joel Carrett

Beyond Bank’s general manager of customer experience, Nick May, said people worried about losing their job should “get on the front foot” and speak with their boss and their bank.

“Communicate early and keep communicating,” he said. “Take any guesswork out of it by talking to your employer to find out important information about your future hours, wage your employment status.”

“Most banks have different financial wellbeing programs that are free and easy to access.”

H & R Block director of tax communications Mark Chapman said employers “hopefully will be picking up the tab for the wage bill” from March 28 but some would not.

“People don’t want to hear it but businesses may need to let some people go,” he said.

“Start the conversation with your employer now. What are things looking like? Is my job safe?”

HAIR SALON ‘OVER THE WORST’

Blow-dry bar at Blown Lux in Barangaroo attracts customers wanting to appear their best for lunches and important face-to-face client meetings.

There haven’t been so many of those in recent times.

Manager Bonnie McCarthy said many big-company employees were currently more “relaxed” about how they look.

But the hen’s parties market was coming back, Ms McCarthy said.

The business had been able to draw on JobKeeper through the pandemic, she said.

She said she was “not too worried about” its looming withdrawal, with the worst having appeared to be in the past.

“I think now we are quite settled,” she said.

Crown’s opening had been helpful.

Her client, CBD resident Julie Rowe, agreed, and said the arrival of residents in the nearby resort tower would deliver more customers.