With Australian businesses fighting for survival, and alongside COVID-19 developments in Victoria, the September ‘fiscal cliff’ presents an existential threat to possibly hundreds of thousands.
Using ABS and federal government data, Deloitte Access Economics estimates around 240,000 businesses in the hospitality, professional services, and transport industries, in particular, are at high risk of failure come September.
That’s nearly 10% of all Australian businesses.
Under the current federal government arrangements, businesses will receive their last JobKeeper payment on 27 September – around the same time as many rental and loan repayment deferral agreements are also set to end.
This will put enormous pressure on the viability of many businesses, and the economy as a whole.
Key questions for policy-makers, lenders, insurers, suppliers and utility providers who rely on the business-to-business market will be: how many clients might close down? And when?
Industry impacts of COVID-19
