Dan Andrews warns of hardship ahead as business relief ends
Daniel Andrews has hit out at the federal government for planning to end business support as the state reopens, saying Victorian businesses face hardship ahead.
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Victorian businesses will continue to suffer financial hardship despite the state’s gradual reopening at the 80 per cent double vaccination target.
That’s the warning from Daniel Andrews after the federal government confirmed it will halt emergency business and income support, costing taxpayers $1.5bn a week, at that threshold.
“Hopefully there is no business support needed when we get to 80 per cent. But I suspect there might be some,” the Victorian Premier said.
Taking a swipe at the federal government, Mr Andrews said targeted lockdowns were still expected under phase C of the national plan and said the state did not have unlimited resources.
“We’re disappointed,” he said. “Stomping your foot and saying, there shall be no more payments made; that is not leadership.”
But Josh Frydenberg said the commonwealth was providing almost double the level of support funded by the state government.
“They would like me to continue the support indefinitely,” the federal Treasurer said. “They are always asking us for more money, and most of the time we’re providing it.”
Both governments announced a joint $2.27bn support package on Thursday to help businesses get through the next six weeks until the 80 per cent vaccination rate is reached.
But Mr Frydenberg stood firm on switching off support at that threshold, saying lockdowns needed to lift because Victorians needed “their lives back”. He said Melbourne had gone from being the “most liveable city in the world to the most locked down city in the world”, adding:
“There is a level of despondency as people just want these lockdowns to come to an end.”
Australian Chamber of Commerce and Industry chief executive Andrew McKellar cautioned the government about removing support prematurely.
“Removing business support too quickly could see even more employers going to the wall, while ending disaster relief payments could also result in a sharp jump in unemployment and a contraction in household consumption, slowing our post-pandemic recovery,” he said.
Ai Group CEO Innes Willox welcomed the winding back of Covid-related business support. But he said sectors relying on international travel would continue to experience hardship despite the jabs threshold being reached.
“We recommend that a degree of flexibility be adopted in the withdrawal of payments that reflects the circumstances of individual businesses,” Mr Willox said.
Hip Hop Yoga founder Victoria Alessi said the news was concerning, with people unlikely to return to their normal routines the moment restrictions ease. “The business support really helps and keeps us afloat,” she said.
Opposition finance spokeswoman Katy Gallagher said the federal government “has a responsibility, considering much of this lockdown is because of our low vaccination rates linked to our low-supply vaccine … to make sure businesses are supported, and even past 80 per cent”.
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