NSW lockdown extension: More businesses will close without extra support

Published July 07, 2021 Author: Employsure
NSW Lockdown Extension

The cost of running a business during a lockdown is far greater than the support being offered by the state and federal governments, according to Employsure, Australia’s largest workplace relations advisor.

Business owners in New South Wales affected by the current lockdown are now faced with another week of lockdown due to the latest COVID-19 outbreak.

But with a maximum of a $10K financial grant being offered by the state government, and no additional federal support for employers in sight (something even the NSW government has asked for), there is absolutely no question some businesses will not be able to reopen after restrictions lift.

“The livelihood of thousands of business owners is on the line here, and the financial grants being offered to those who are eligible is nowhere near enough support,” said Employsure employment relations specialist Nicholas Hackenberg.

“While the support is welcome and restrictions necessary to stop the spread of the virus, the loss to business that comes with each additional day of lockdown quickly adds up. There’s the cost of rent, along with the high costs of stock, electricity, and paying employees. Now this lockdown has been extended, it will have a significant impact on small business.”

While financial support for eligible employers affected by lockdown has been implemented by both the New South Wales and Victorian state governments, when it comes to federal support, employees are the only ones who benefit.

The Federal Government has outlined its four-stage plan to reopen Australia in order to avoid any lockdowns in the future, however, there is still no clear framework regarding how we will be able to achieve this and return to normal.

Employsure is calling on the state and federal governments to work together to implement a more streamlined JobKeeper 3.0 tap for businesses that can be turned on to support them and their staff in the event of future snap lockdowns. This is especially true for those in retail, hospitality, and tourism.

“If government can be flexible with providing additional support where it’s needed when things get worse, it will benefit SMEs immensely. Small business is the key to economic recovery, and if the support being offered in its current form doesn’t improve, struggling employers will have no choice but to close their doors,” continued Mr Hackenberg.

“While some business owners will be able to hold out until restrictions are lifted, for some sadly, the increased pressure of operating in this environment will be the final nail in the coffin.”

Further enquiries:

Matthew Bridges

[email protected]

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