One in ten businesses would fail without support, ABS survey reports
Forty per cent of businesses were getting some kind of government support in July, with one in 10 reporting they would close their doors if support was removed.
Two in five businesses were accessing some kind of government support measures to help them manage the COVID-19 downturn in July, with one in 10 of those reporting they would close their doors if that support was removed.
The latest Australian Bureau of Statistics’ latest survey on the impact of the health crisis on businesses also showed that of those receiving support, 16 per cent would cancel investment plans if those measures were removed, 14 per cent would order less, and 13 per cent would cut staff.
The support measures covered wage subsidies, loan payment deferrals, or rental or lease renegotiations.
The survey was conducted between July 15-23, with nearly 1000 firms responding. It also revealed that almost half of firms reported a drop in revenue over the previous month.
Looking ahead, 27 per cent expected revenue to fall again in the month ahead, while 49 per cent predicted turnover to remain the same.
Four in five businesses reported no change in staff numbers over the previous month and 85% per cent expected no change next month.
Fewer businesses expected a decrease in the number of employees next month (3 per cent), compared to those that reported a decrease over the previous month (13 per cent), the ABS said.
“A number of businesses reporting a change in revenue commented that there were minor differences between the reporting period and the previous month, but significant differences compared to the same time last year,” the ABS said.
Some businesses noted that the seasonal nature of their business impacted on monthly variations in revenue.
Some firms reported spending more on cleaning and hygiene equipment, while others said costs were lower because more staff were working from home.
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