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Small businesses on the brink left out of Covid relief

Troy Clarke has owned ZoReilly’s in Waratah for the past four years and has seen his share of ups and down, but soon things could get dire with the government’s relief package not much help.

Perrottet announces financial assistance for businesses

Troy Clarke has owned ZoReilly’s Cafe in Waratah for the past four years and has gone through good times and bad — but soon things could become dire.

Covid-19 assistance packages in the past have helped his small business tread water, but the new hand out tabled by the NSW government this week could now make it sink.

“I can’t see us lasting another 12 months,” Mr Clarke, a foundation player for the Newcastle Knights, said.

“I do this all on my own. It is stressful enough running a business day to day without worrying about the future, but how can you not?”

It comes after NSW Premier Dominic Perrottet and Treasurer Matt Keen delivered a $1 billion Covid support package aimed at assisting businesses crippled by restrictions.

Small and medium businesses with a turnover of $75,000 and $50 million who have lost more than 40 per cent of their turnover are able to claim 20 per cent of their weekly payroll.

Cafe owner and former Newcastle Knights player Troy Clarke worries about his cafe's future.
Cafe owner and former Newcastle Knights player Troy Clarke worries about his cafe's future.

The government’s Small Business Support Package will provide between $750 and $5000 per week during February, paid as a lump sum. Businesses who do not employ workers but fall between the turnover amounts and have suffered the loss in income are eligible for $500 per week.

But the package appears to leave those sole traders and small business owners with a much lower turnover out in the cold.

In previous support packages, there were payments available to small sole traders who had a smaller turnover, but because Mr Clarke’s cafe makes less than $75,000 per annum, he’s ineligible to seek the benefit.

“It’s these small corner shops that keep the economy alive, not the big end restaurants. The amount the government throws to the top end is unbelievable.

“They should be looking after everyone, not just the rich and that’s what this package is set up for.”

Wallsend MP Sonia Hornery. Picture: Supplied
Wallsend MP Sonia Hornery. Picture: Supplied

Clarke believes if he doesn’t receive support from the NSW Government, he will not survive the current downturn his business is experiencing.

Wallsend MP Sonia Hornery has written to the Treasurer and Small Business Minister asking for assistance for small traders who don’t meet the requirements of the new package.

“Once again we are seeing this Government not listening to small business owners out there in the community,” Ms Hornery said. “I have spoken with a number of businesses in the past month and some are really struggling.

“Many have not recovered from the previous lockdowns and restrictions and have a turnover of less than $75,000.

“Under the new package announced by the Government this week, they don’t get a single cent in assistance.

“We need to look at supporting all businesses like we have done in previous packages.

“We need to make sure that nobody is left behind during this incredibly tough time,” said Ms Hornery.

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Original URL: https://www.dailytelegraph.com.au/newslocal/the-newcastle-news/small-businesses-on-the-brink-left-out-of-covid-relief/news-story/de5cf0f782bfa61860523f0164f20c73