Pressure mounts over JobKeeper amid latest Victorian Covid lockdown

Crippled Victorian businesses entering lockdown for the first time without JobKeeper have called for more support to survive their fourth shutdown.

Crippled Victorian businesses entering their fourth coronavirus shutdown have called for more government support to help them survive the latest lockdown.

Pressure in mounting on both the Victorian and federal governments to detail what financial support will be provided to businesses during the state’s first lockdown without the JobKeeper subsidy.

It will also be the first lockdown in Australia to extend beyond a weekend since the commonwealth’s wage subsidy was stopped at the end of March.

Victoria’s fourth lockdown will further compound the pain for businesses, especially in the hospitality, retail and tourism sectors, who have been forced to close their doors again and can only operate a take away or click and collect service.

Early estimates suggest the seven-day snap lockdown could cost the state’s economy up to $1bn.

Acting Premier James Merlino said on Friday morning the government would be providing support and the state’s Treasurer Tim Pallas was locked in “active discussions” with his federal counterpart Josh Frydenberg.

Victorian Treasurer Tim Pallas was locked in discussions with the federal treasurer on Friday morning. Picture: NCA NewsWire / Sarah Matray

Mr Merlino said the state government would be providing a support package for businesses, which would be released in coming days.

“We understand, absolutely, that a circuit breaker lockdown has an impact on families, on children, on businesses, on the broader community,” he said.

“We also understand it’s quite tough at the moment, there is no JobKeeper anymore.

“I just want to let people know, particularly the business community know, that the Victorian treasurer and federal treasurer are talking about assistance.”

But the acting Premier said it was “too early” to say what the support package may or may not include.

The Australian Council of Trade Unions has called on JobKeeper to be reinstated immediately where it was needed.

Victorian businesses have had to close their doors again.

Bourke Street Mall is almost empty during the morning peak on the first day of lockdown. Picture: NCA NewsWire / Andrew Henshaw

“People will lose work during this lockdown thanks to the federal government’s decision to completely end JobKeeper early,” ACTU president Michele O’Neil said on Thursday.

“While the vaccine rollout continues to flounder there will be thousands of businesses and millions of workers who continue to need support.”

In a statement provided to NCA NewsWire, Treasurer Frydenberg said Victoria’s lockdown was a painful reminder the nation was still in the midst of a global pandemic.

While making no commitment to reinstate JobKeeper, he said targeted support would continue to be provided to the tourism, travel, aviation and arts and entertainment sectors.

Federal Treasurer Josh Frydenberg said support was being provided to businesses. Picture: Chris Kidd

“Already $45.2bn in economic support has been provided to Victoria during this crisis and more is flowing in the form of tax cuts to households and businesses, as well as additional funding for much needed mental health services,” he said.

Finance Minister Simon Birmingham also told Sky News on Friday morning that despite there being no JobKeeper anymore, the recent budget had been framed around the possibility of localised outbreaks over the next year.

Shadow Victorian Treasurer Louise Staley slammed the state government for not having an immediate plan for business support and deferring an announcement for a few days time.

“Given its track record of failure in contact tracing, it is beyond comprehension that Labor has not planned and not budgeted for another lockdown,” the Liberal MP said.

“Businesses are still reeling from the February snap lockdown, and many are only just getting back on their feet.”

Under the restrictions imposed during the snap seven-day lockdown cafes and restaurants can only offer take away, gyms, hairdressers, community facilities and entertainment venues have all been closed and non-essential retail may only open for click and collect.

Hotels and accommodation can only stay open to support guests already staying onsite but no new bookings can be made.

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