Gladys Berejiklian hit over $5bn COVID stimulus shortfall

The Berejiklian government’s COVID stimulus programs have underdelivered $5bn to the NSW economy.

Surf store owner David Watson and daughter Bec Conroy. Picture: Britta Campion

The Berejiklian government’s COVID stimulus programs have underdelivered $5bn to the NSW economy, and with the post-JobKeeper cliff rapidly approaching, ailing sectors are calling on the Premier to reinject the missing billions.

Analysis of the NSW government’s COVID fiscal injections reveals a vast discrepancy across dozens of programs between headline figures promised and the funds actually delivered.

This includes the small business grants program, which had $111.5m or 15 per cent still undelivered, more than $200m of residential land tax relief unspent and almost a fifth, $14.6m, in small business and tradies license fee waivers left over.

In addition, $343.1m in residential and commercial land tax relief remained unspent.

The NSW government has faced criticism from businesses that the eligibility criteria for grants programs are too narrow, and that cut-offs close too soon.

They are also facing criticism from struggling northern beaches business owners who still can’t apply for relief funds

Three months on from the three-week lockdown, David Watson and Chris Friend, who co-run North Avalon’s local surf store Beach Without Sand, say the grants program hasn’t even been set up yet. “It really came at the worst possible time for the business,” Mr Watson said. “The Christmas and summer period is normally our best three weeks, but the lockdown knocked us for six.”

Despite seeing revenue plummet by 80 per cent drop during the December lockdown, when the pair contacted Services NSW last week to ask when they could access the scheme, they were told the framework was not finalised.

“You wouldn’t think it was rocket science trying to get it up and going. The grant will just help with some of those fixed costs while our resources are very ­depleted.”

Labor opposition finance and small business spokesman Daniel Mookhey called on the government to use the leftover funds, saying rather than sitting on the Treasury’s balance sheet, the $5bn could be saving jobs across the NSW economy.

“Ms (Gladys) Berejiklian and Mr (Dominic) Perrottet’s unspent billions could help the thousands of NSW businesses scared to death about JobKeeper ending,” Mr Mookhey said.

“They owe every NSW business fighting to survive an explanation about why they are sitting on $5bn of promised help.”

Business NSW chief executive Nola Watson said many industries were continuing to struggle to get back on their feet, and the spectre of snap border closures meant business confidence remained fragile. “This is being felt more acutely in industries which rely on international visitors — tourism, hospitality and accommodation businesses will require long-term support measures to keep people in work,” she said.

In a statement, Customer Service Minister Victor Dominello declined to say when applications for the northern beaches grants would open, other than saying the program was being finalised and would be open “shortly”.