Perrottet slams PM for not stepping up on business support package

The Perrottet government is ramping up pressure on the federal government to match its $1bn support package for businesses devastated by the Omicron wave.

NSW Premier Dominic Perrottet. Picture: Richard Dobson

The Perrottet government is ramping up pressure on the federal government to match its $1bn support package for businesses devastated by the Omicron wave, with NSW Treasurer Matt Kean repeatedly attacking Scott Morrison and Josh Frydenberg for ignoring the state’s pleas for help.

“I’m very disappointed. I was hoping to make this announcement standing beside the Prime Minister today and Treasurer Frydenberg, but they’re not to be found,” Mr Kean told a press conference on Sunday.

The long-awaited support package aims to help 100,000 small and medium businesses that have had at least a 40 per cent downturn over summer, covering 20 per cent of their wages bill to a maximum of $5000.

The NSW government had wanted the federal government to match the funding, as it had in the joint response to the Delta variant, but after prolonged discussions, Mr Frydenberg declined to contribute even a smaller share of the NSW stimulus package, earning an unusually strong rebuke from Mr Kean.

“These are not just NSW businesses, they’re Australian businesses that pay taxes to the commonwealth government, Aus­­tral­ian businesses doing it so tough at this time,” he said.

“What I’d like to see is the commonwealth, instead of stepping aside, stepping in to support those small businesses so we can pay 40 per cent of payroll and help those businesses stay afloat even longer to turbocharge our state’s economy and our nation’s economy going forward.”

Mr Kean said the NSW government had stepped up when it came to bushfires, supporting farmers through drought and supporting small businesses through Omicron, so “rather than the commonwealth government stepping aside, we expect them to step up.”

Defending the decision not to contribute to the package, Josh Frydenberg said that NSW had benefited from $63.5 billion in federal support through the pandemic.

The Treasurer also said NSW residents continue to be suppored through $170 million in pandemic leave payments, the small and medium business loan guarantee scheme, and tax cuts.

“While Omicron has put pressure on our health system and supply chains, it is significantly less severe than previous variants.We must learn to live safely with COVID. The economy must transition to normalised settings, as we bring an end to emergency support,” Mr Frydenberg said

Premier Dominic Perrottet insisted on Sunday that the big-spending package was the only way forward and that he couldn’t understand the federal government’s decision. “If you don’t take this approach, I’ll tell you what you’ll have - you’ll have a poor economy, you’ll have people out of work at the end of it.”

The package was welcomed by most business groups, with Restaurant and Catering Australia chief Wes Lambert saying his organisation would continue to advocate for extra funding from the federal government. “We would have liked them to have supported the NSW government in this business support package for restaurant and catering, and we’ll continue to do so.”

Businesses with an annual turnover of between $75,000 and $50m with a decline in turnover of at least 40 per cent in January and anticipated in February will be able to make a claim for 20 per cent of their weekly payroll, to a maximum $5000 payment a week.

Businesses will be able to claim a rebate of up to $3000 to pay for the cost of staff rapid antigen tests.

The package includes payments of up to $3000 a property a month for commercial landlords who have provided rental relief waivers to affected tenants.

Mr Kean also pledged support for the performing arts sector.

“We’re announcing a package of around $80m to underwrite ticket sales with those theatre performances, plays and performing arts events that have been impacted … over this summer period,” he said.