news, Business Northwest, Ian Jones, JobKeeper, small business, business, Stacey Sheehan
Between 75 and 90 per cent of small businesses in Burnie and Devonport are expected to drop off the revised JobKeeper payment, according to business leaders. The figure was reached following discussions between leading accounting companies, Business Northwest president Ian Jones and former Devonport Chamber of Commerce and Industry president Stacey Sheehan. Mr Jones said having a high number of businesses coming off the payment was a positive sign because it indicated they had recovered or at least reached "levels similar to the relevant period last year". "Industries such as manufacturing, mining and retail to a large extent have recovered well," he said. IN OTHER NEWS: "But tourism and hospitality still continue to suffer." Small businesses must have suffered a 30 per cent drop in turnover to be eligible for JobKeeper and will be reassessed once the payment is cut to $1200 a fortnight on September 28. While Mr Jones broadly welcomed businesses coming off JobKeeper, he was concerned the reduced payments would mean less cash in the economy and the impact on businesses from the end of mortgage holidays. "So there could be a lot greater demand on businesses and we're really concerned about the viability of some of those businesses," Mr Jones said. "We've already had one restaurant go out of business in Burnie we don't want more." Things are looking up for certain businesses, such as Spoil Me Gifts, which has done a roaring trade off people sending flowers and gift hampers to loved ones. Shop operator Gaye Gilliam said she was looking forward to a "good Christmas". "It is busy, busy. We've never had it so busy," she said. "And I think most shops are busy. You've only got to go downtown." Things have also been ticking along nicely at Betta Electrical, owner Barry Campbell said "When the state reopened we were extremely busy and that continued really for us for three months," he said. "Now it's not as busy but it's still quite steady." Neither business used JobKeeper but that does not mean they will not be affected by the payment cuts. Mr Campbell said it was possible it could affect the purchase power, however, he expected things to return to "the normality of business". "Some of these smaller businesses that have found it really tough, I just hope they can get going again and pick up where they left off in March," he said. While you're with us, did you know that you can now sign up to receive breaking news updates and daily headlines direct to your inbox? Sign up here.
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September 21 2020 - 6:00PM
Small business expected to bounce back as JobKeeper changes loom: Business Northwest
Lachlan Bennett
Between 75 and 90 per cent of small businesses in Burnie and Devonport are expected to drop off the revised JobKeeper payment, according to business leaders.
The figure was reached following discussions between leading accounting companies, Business Northwest president Ian Jones and former Devonport Chamber of Commerce and Industry president Stacey Sheehan.
Mr Jones said having a high number of businesses coming off the payment was a positive sign because it indicated they had recovered or at least reached "levels similar to the relevant period last year".
"Industries such as manufacturing, mining and retail to a large extent have recovered well," he said.
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"But tourism and hospitality still continue to suffer."
Small businesses must have suffered a 30 per cent drop in turnover to be eligible for JobKeeper and will be reassessed once the payment is cut to $1200 a fortnight on September 28.
While Mr Jones broadly welcomed businesses coming off JobKeeper, he was concerned the reduced payments would mean less cash in the economy and the impact on businesses from the end of mortgage holidays.
"So there could be a lot greater demand on businesses and we're really concerned about the viability of some of those businesses," Mr Jones said.
"We've already had one restaurant go out of business in Burnie we don't want more."
ROARING TRADE: Spoil Me Gifts operator Gaye Gillam said they had done a roaring trade off people sending flowers to loved ones. Picture: Brodie Weedng
Things are looking up for certain businesses, such as Spoil Me Gifts, which has done a roaring trade off people sending flowers and gift hampers to loved ones.
Shop operator Gaye Gilliam said she was looking forward to a "good Christmas".
"It is busy, busy. We've never had it so busy," she said.
"And I think most shops are busy. You've only got to go downtown."
Things have also been ticking along nicely at Betta Electrical, owner Barry Campbell said
"When the state reopened we were extremely busy and that continued really for us for three months," he said.
"Now it's not as busy but it's still quite steady."
Neither business used JobKeeper but that does not mean they will not be affected by the payment cuts.
Mr Campbell said it was possible it could affect the purchase power, however, he expected things to return to "the normality of business".
"Some of these smaller businesses that have found it really tough, I just hope they can get going again and pick up where they left off in March," he said.
While you're with us, did you know that you can now sign up to receive breaking news updates and daily headlines direct to your inbox? Sign up here.