New South Wales’ peak business bodies are calling on the Federal Government to introduce a new wage subsidy support program for industries most affected by Covid-19 restrictions.
Business NSW and the Australian Chamber of Commerce and Industry (ACCI) are proposing the new program supports travel, tourism, hospitality and international education sectors, once JobKeeper winds up in March.
The Hunter Business Chamber has backed this proposal, which Business NSW has now submitted to the Treasury in its annual Pre-Budget, arguing that the government needs to provide a clear pathway for business recovery
“In our most recent Business Conditions Survey conducted across NSW, 23 per cent of businesses believed they were at a high risk of failure when supports such as JobKeeper, tax relief, interest waivers and other measures end,” Hunter Business Chamber CEO Bob Hawes said.
“This vulnerability will hang over the small business sector for much of the year and will need to be factored into decisions around when and how these measures are withdrawn.”
Aimed at preserving future jobs and skills, the proposed wage subsidy would:
- be set at $450 per week per employee if business turnover is down by over one third or $700 per week per employee if business turnover is down over two thirds, relative to the same quarter in 2019;
- be tested quarterly to confirm eligibility;
- be available to those employed on or before 1 January 2021; and,
- retain the industrial relations flexibilities of the JobKeeper payment.
“Last year’s delayed Budget was understandably about providing economy-wide support for industry, but this year has to be about accelerating the path to the new normal,” Mr Hawes said.
“Many businesses are finding it impossible to plan past March. The new package must provide longer-term certainty for businesses to plan for as long as restrictions are in place.”
