Queensland yet to feel impacts of end to JobKeeper

A delayed wave of liquidations and administrations could crash across Queensland in the wake of JobKeeper ending, business experts have warned.

A ‘delayed wave’ of mass closures and lay-offs could smash Queensland’s struggling businesses as the end of JobKeeper begins to be felt.

Predictions 10,000 Queensland businesses would collapse at the expiry of JobKeeper in March have not yet come to fruition, however industry leaders and insolvency specialists tip the cash slash won’t be felt until coming months.

Cairns Chamber of Commerce President Sally Mlikota said it remained “too early” to understand how the end of the program would influence businesses.

“It will be a delayed effect and long term, we don’t know what will happen,” she said.

Cairns Chamber of Commerce President Sally Mlikota says businesses in Far North Queensland have benefited from a bumper Easter.

Ms Mlikota said a bumper Easter in the tropical tourism hotspot had eased the pain of some operators, which were now struggling to find staff.

“Some people have left town so the lower end jobs like cleaners and hospitality staff have been hard to come by,” she said.

The city is considering incentivising young people to move from southern Queensland and interstate to work in the tourism industry.

Last month Premier Annastacia Palaszczuk had predicted the end of JobKeeper would result in “thousands of jobs lost in Cairns, the Whitsundays and the Gold Coast”.

Queensland Treasurer Cameron Dick said the end of JobKeeper would not be understood until jobs figures are released on May 20.

Queensland Treasurer Cameron Dick says the full impact of JobKeeper ending won’t be known until later this month. Picture: Alix Sweeney

“By then, Queenslanders who have lost jobs or income because of the withdrawal of JobKeeper will have been feeling the pain for seven weeks, while the Federal Government did nothing,” he said.

“I’m concerned about what inaction means for businesses and workers in places like Cairns and the Whitsunday, where the closure of international borders means it will be a long time before international tourists return.”

Revive Financial Insolvency Partner Jarvis Archer said JobKeeper had allowed businesses affected by COVID to retain staff until revenue had recovered.

“However, for other businesses still impacted, such as those reliant on international travel and tourism, the loss of stimulus payments may force further job cuts in order to remain viable,” he said.

Mr Archer said insolvency appointments this month were similar to this time last year, suggesting a delayed wave of liquidations and administrations could crash across Queensland.

It comes as passenger movements through Queensland’s top seven airports remain 41 per cent lower than this time last year.

Figures released by Cairns Airport reveal 192,783 passengers transited the terminal in March – the second-highest month of passengers since the pandemic started.

In December 205,395 passengers transited the airport.

Originally published as Queensland yet to feel impacts of end to JobKeeper