Restaurateur says businesses are about to be ‘penalised’ for trading during coronavirus pandemic

The state’s “false economy bubble” could burst when the federal government restricts the flow of JobKeeper money, a restaurateur has warned.

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THEY thought they were doing the right thing by staff and the community, but businesses that traded through Tasmania’s coronavirus lockdown say they are about to be penalised for their efforts.

While many cafes and restaurants remain closed waiting for interstate tourism to return, others such as Smolt Kitchen in West Hobart have traded throughout the pandemic crisis, initially by switching to a takeaway model.

For many operators it was a way of staying sane during the lockdown and giving back to customers, but the Tasmanian Hospitality Association said the perverse result was that those businesses would suffer when changes to JobKeeper wage subsidies came into effect next month.

HOW JOBKEEPER PROGRAM CHANGES WILL AFFECT YOU

From September 28, only businesses that can show a 30 per cent or more cut to turnover in the September quarter will qualify for JobKeeper, which is dropping from $1500 to $1200 a fortnight for eligible employees.

Changes to the scheme announced on Thursday will benefit Victorian businesses that have been forced to close again this quarter because the turnover test will no longer apply to the June quarter, but many Tasmanian businesses will miss out.

THA board member and Hobart bar owner Carl Windsor said while turnover was looking reasonably healthy for eateries with a strong loyal following, actual profits were not enough to sustain current staffing levels.

“Tasmanians have been amazing digging their hands in their pockets, but Tasmanians’ pockets are only so deep,” Mr Windsor said.

Carl Windsor, owner of Ettie’s restaurant in North Hobart. Picture: NIKKI DAVIS-JONES

Smolt Kitchen owner Jacob Nunn said the JobKeeper scheme had supported five of his eight staff through the pandemic and it hurt knowing the subsidy was about to dry up.

“I knew that staying open was going to be tough, but it was a moral thing because we have a couple of visa holders with us and if I didn’t stay open, they were going to get nothing,” Mr Nunn said.

“We’re doing quite well at the moment, because I have JobKeeper for my staff and I have really good rent assistance from my landlord. But, come September, the reality is I’m down about 15 per cent from last year and all of a sudden I’m paying full rent and full wages again.”

Smolt Kitchen owner Jacob Nunn with front of house staff member Katrina Green at the West Hobart eatery. Picture: Zak Simmonds

Mr Nunn said Tasmania’s “bubble” of community goodwill and government support was about to burst.

“It’s a real false economy bubble at the moment because everyone thinks they’re doing quite well and they’re paying off all their debts, but come September realistically we won’t have any tourism coming in, the Airbnbs will be empty, so we’re back to struggling again,” he said.

Mr Windsor said some eateries were considering cutting their trading hours to meet the JobKeeper eligibility test because they could not survive on profits in the current market.

The THA has written to Premier Peter Gutwein urging him to lobby the federal government for changes to JobKeeper eligibility, so that it is based on profit rather than turnover.