Federal Government splurges $5 million to help local small business

The cost of the pandemic has been horrific for small businesses, forcing the Government to today launch a nationwide campaign.

The Federal Government has splashed $5 million on a campaign to implore Australians to shop local as the economy struggles amid the destruction of the coronavirus pandemic.

It was revealed the nationwide lockdown earlier in the year cost the economy $4 billion-a-week – with Victoria forcibly retreating back indoors expected to slash another $1 billion each week.

But small and family businesses have been particularly hard hit during these exceptional times, with an estimated 15 per cent of Melbourne businesses expected to close forever during the state’s six-week shutdown.

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The pandemic has so far cost three in four small businesses up to 75 per cent of their revenue, according to leading researcher the CT Group.

This has impelled the peak body and the government to today launch a six-month campaign to implore Australians through broadcast and digital advertising to think locally before each purchase.

“The impact on them cannot be underestimated,” small and family business minister Michaelia Cash told news.com.au.

“They’re the drivers of local communities. When they have to close their doors, that has an impact right across Australia.

“We all know that when small businesses succeed, all Australians benefit.”

Central Melbourne has become a ghost town once again. Picture: James Ross/AAP

Ms Cash singled out those seduced by bargains online, pleading with them to instead support businesses down the road.

“If you’re going to go shopping and you know the local food shop has had to close down, give them a call, ask if they have an online service and if they do, use that,” she said.

“What we also know is small businesses can pivot very quickly.”

This became a legacy of the national lockdown when restaurants beefed up takeaway operations and niche companies such as those who construct stages built work-from-home desks and other necessities.

“Go local first, make that conscious decision to see whether or not the purchase you’re about to make could be made locally,” Ms Cash said.

“Support your local grocer, support your local butcher, accounting firms, gardeners, tradespeople.”

Senator Michaelia Cash has implored Australians to shop local. Picture: Gary Ramage

The small business peak body said the horrific revenue lost should serve as a reminder for Australians to focus their spending locally.

“Small businesses are the heartbeat of their communities but they’re doing it really tough,” Council of Small Business Organisations of Australia chief executive Peter Strong said.

“They’re worried about losing customers and their mental health is suffering.

“A third of sole traders have seen almost 80 per cent of their revenue evaporate overnight.”

David Heffernan is a pharmacist at Culburra Beach in NSW who said his business had already been impacted by the fires that tore through the state’s south coast.

“So it had been a tough year for us, even before COVID-19,” he said.

And rural truck stop operator, the 24 Seven Group, said the combination of the devastating blazes and the global pandemic meant it had suffered a “double hit”.

“We first suffered because of the SA bushfires and then saw our weekly revenues fall by more than 70 per cent during April and May as a result of COVID-19,” owner Stan Karalis said.

“As the largest employer in some of the small regional towns in which we operate, we are conscious of keeping our people employed and our community going.

“But it has been tough and is likely to be a struggle for some time yet.”

On Wednesday, Treasurer Josh Frydenberg said a “targeted” income support scheme will be announced on July 23 to ease the economic shock expected once JobKeeper and JobSeeker expires in September.

Its not yet known how the Federal Government’s next wave of support would be allocated but Ms Cash told news.com.au it would make sense to support hard-hit industries such as hospitality and retail nationwide rather than narrowing the focus to Victoria.

“What we are currently doing as a Cabinet is working through what the next level of support that is needed to be provided to those businesses that we know will still be doing it tough after September,” she said.

Visit the website golocalfirst.com.au to find out more about the campaign.