The Hunter Business Chamber is calling on all levels of government to provide economic assurances for businesses following the end of JobKeeper.
According to a Business NSW survey, one in three businesses receiving JobKeeper have not planned for when payments stop.
Half have indicated they will be unable to maintain current hours or staff after the scheme ends.
Hunter Business Chamber Chief Executive Bob Hawes said COVID-19 was a once-in-a-generation challenge for the business community that demanded decisive, ongoing action from government.
“Half of the respondents from our region receiving JobKeeper indicated that their business would be closed without the subsidy, which was higher than the state average of two in three,” Mr Hawes said.
“Across the region, revenue is estimated to be down by between 40 and 47%, due largely to the impact of government restrictions and reduced customer demand.
“While the survey shows that JobKeeper has been overwhelmingly the most helpful policy measure for business, it also reveals that few businesses have a Plan B, with many unprepared for what happens after September.
“That is why this week’s economic and fiscal update from the Federal Treasurer must give the business sector confidence about the road ahead, particularly given the new risks that have emerged in Victoria and NSW and the impact these developments are having on business and consumer confidence,” he said.
According to the survey, eight in 10 businesses expect to be back to normal or near-normal operations by October, although many indicated their capital spending, staffing and capacity to hire would be reduced.
More than half of the respondents had downsized, deferred payments, reduced staff expenses or drawn on personal funds in response to revenue loss.
Tourism, construction, transport, hospitality and education businesses were the least likely to be back to normal by October.
“Uncertainty about the health crisis and the future of business support programs, such as JobKeeper, is having a massive chilling effect on the appetite of business owners to hire staff and invest for the future,” Business NSW Chief Executive Steve Cartwright said.
Business NSW has listed 10 points of action they feel State and Federal governments should undertake to help businesses.
One suggested that the Federal Government should replace JobKeeper with a new rebate to protect vulnerable jobs.
“The recovery drivers discussed in our report are aimed at ensuring that businesses stay open, staff are rehired and that the foundations for future economic growth are set in place,” Mr Cartwright said.
“These drivers include a Federal and State Government Compact committing to returning unemployment to below 6% by June 2022, providing greater certainty on the pathway ahead for businesses currently affected by restrictions, supporting young people through a Youth Jobs Guarantee and replacing JobKeeper with a new rebate.
“Our future living standards depend on our resolve to reduce the cost of doing business and improving competition in markets.
“That is why we urgently need regulatory reform to drive business growth, concrete steps to improve NSW’s energy outlook and investment in new infrastructure to unlock economic capacity in regional NSW.
“We would also like to see greater co-operation, including through National Cabinet, to implement overdue reforms to Federal financial relations, payroll tax and workplace relations.”
The Business NSW ‘Back on Track’ Report and Recovery Drivers are available to read here.
