Covid-19: More help or we’re doomed, says business

Business groups have demanded greater levels of assistance, including tax waivers, grants and rental relief, in the wake of the Greater Sydney lockdown extension.

NSW Treasurer Dominic Perrottet. Picture: Christian Gilles

Business groups have demanded greater levels of assistance, including tax waivers, grants and rental relief, in the wake of Wednesday’s announcement that the Greater Sydney lockdown will continue for a further week, as the NSW Treasury estimated the cost of the existing support package at up to $1.4bn.

Small businesses and sole traders were waiting anxiously for word that NSW Treasurer Dominic Perrottet would extend the current assistance package to those on below $75,000, as the federal government ruled out any reintroduction of JobKeeper.

The package currently offers grants of between $5000 and $10,000 for businesses that suffer a loss of trade between 30 and 70 per cent, but only if they have a turnover of at least $75,000 a year.

Mr Perrottet said the government was “looking at” expanding the package and that it was “open to more targeted assistance as the situation arises”.

Australian Industry Group chief executive Innes Willox said the week’s extension would be devastating to Sydney businesses, estimating it would likely cost an additional billion dollars to the city’s economy at least.

“The best estimate is that every lockdown in a major city costs well over a billion directly and over $2.5bn indirectly through deferred spending that may never be recovered,” he said.

Mr Willox said that though he agreed with the NSW government’s reasoning that it was better to crush the latest outbreak rather than risk the numbers climbing higher when lockdown was lifted, businesses were running out of puff.

“No matter where they are, businesses are over lockdowns and lockdowns are what businesses dread most.”

Business NSW chief executive Daniel Hunter said the extension was another “huge blow”, with 48 per cent of businesses reporting that the impact of this lockdown was tougher than the original lockdown in March last year, according to a survey conducted by the council.

“A lot of it is because there is not as much support around; there is no JobKeeper, no rent relief and the cumulative impact the survey is telling us this first two weeks of lockdown is as bad as the two months when it began,” he said.

“Another key finding is one in five businesses say they only have enough cashflow to continue to the next month, so it’s a real worry for us if lockdown continues, or heavy restrictions, that many won’t recover and they won’t come back.”

Restaurant and Catering Industry Association chief executive Wes Lambert said the extension of the lockdown would cost the sector $700m in lost bookings, and that he would submit a three-point plan to government demanding tax waivers, increased business grants and rental relief measures.

“Many businesses have replied on the lockdown ending after two weeks and certainly will be in need of urgent cashflow support or many will not survive,” he said.

Mr Perrottet said he was considering what form a recovery package could take for businesses post-lockdown.