Victorian businesses facing some of the toughest business conditions in 100 years will be supported through extended Government measures, as today’s economic update reveals the devastating impact of the Covid-19 crisis.
The economic update from Federal Treasurer Josh Frydenberg summarised an uncertain operating environment for Australian businesses with net debt forecast to be $488.2 billion (24.6 per cent of GDP) at 30 June 2020 and increase to $677.1 billion (35.7 per cent of GDP) at 30 June 2021.
The Victorian Chamber advocated for an extension of support to business in order to stem the growing number of business closures and job losses triggered by the return to Stage 3 restrictions across metropolitan Melbourne and surrounding areas.
We welcome measures such as the extension of JobKeeper until 28 March 2021, at reduced payment rates for eligible employees, the extension of the 50 per cent wage subsidy for apprentices until 31 March 2021, and widening of eligibility to medium sized businesses and the extension of the coronavirus SME loan guarantee scheme.
Jobs will continue to be under threat for the remainder of the calendar year, with the unemployment rate expected to peak at about 9.25 per cent in the December quarter 2020.
To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra:
“We have known all along that businesses will play a key role leading the recovery out of the Covid-19 crisis. Today, we have an indication how big a mountain that is.
“The support provided to businesses has been unprecedented, and we’re glad that support continues because Victoria, and Australia more broadly, is clearly not out of the woods yet.
“What Victorian businesses need is a business plan to complement the health plan, because we know that Covid-19 is here for a long time and we cannot shut down our economy indefinitely.
“As part of the business plan we need a clear plan for transport, a plan for how to manage outbreaks and more support needed for some businesses and workers such as sole traders and partners in hospitality businesses.
“But first we know that we have to get the health crisis under control here in Victoria.”
