COMMERCE Ballarat has called for the federal government to be more flexible with its JobKeeper payments to vulnerable industries, saying a strong December does not mean a full recovery for business.
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The call comes as businesses fear a loss of JobKeeper payments during what is traditionally the most difficult time of the year, if their December quarter results show a less than 30 per cent downturn.
While there are some variances, to receive JobKeeper, businesses need to demonstrate a percentage downturn of generally 30 per cent compared to relevant periods.
While many businesses, particularly those in hospitality, have seen in some cases a 90 per cent downturn at various stages during the year, a loosening of restrictions in December has seen many thrive in comparison, but still not to the levels they were at the same time last year.
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Commerce Ballarat chief executive Jodie Gillett said the first month of 2021 could be difficult for businesses to maintain current numbers, with an number of events postponed.
"For sectors who have peak trade periods in December, such as hospitality, it helps support them through quieter times during the year," Ms Gillett said.
"It's unfair for them that after they've been closed for months and months, that their December trade is now going to be a barrier to receive JobKeeper support from January to March."
Ms Gillett said despite a December bounce. recovery would not be immediate.
"We can't expect a business that's been on 20-30 per cent of their trade for six months to recover within a month," she said. "We've been working hard hoping to build January, but if venues and businesses are still not back at 100 per cent, can they maximise those events?"
Mercure Hotel's Iain Gunn said without the federal support, there's no doubt businesses would have failed.
"We are operating at nowhere near capacity yet," he said. "The financial support is decreasing but we've still got several months of less than full capacity ahead of us.
"It's a broad brush approach. Right now it doesn't corelate to the upturn in revenue. That will become a problem down the track."
Australian Hotels Association Victoria president David Canny said the government's work in keeping people in jobs had actually, in some ways, had a detrimental effect on hospitality staff numbers.
"There's some major staff shortages, right now people are cashed up and a lot have decided to take some time off," Mr Canny said.
"There's no real incentive to work, we'd like to see a situation where job seekers can get back to work, say up to 20 hours but still receive some subsidy. We need to come up with innovative solutions in hospitality. How do we staff pubs if we are no longer receiving a subsidy?"
Mr Canny, who runs the Red Lion Hotel, said his business was on a par with December last year, but zero trade in October and minimal trade in November meant it would probably still fall under the 30 per cent threshold this quarter.
He said he felt the real challenge would come in April when "JobKeeper is gone, rents have to be paid and banks want their money".
Liberal Senator for Victoria Sarah Henderson said JobKeeper had been extended to March 28 to assist businesses doing it toughest.
"JobKeeper has and continues to do its job helping to keep businesses in business and Australians in jobs," she said.
"The RBA has said JobKeeper saved at least 700,000 jobs and that if it weren't for JobKeeper the unemployment rate would be five percentage points higher.
"With the recovery now under way fewer businesses are in need of JobKeeper.
"However the government has extended the program until March 28, 2021 to support businesses that still need this vital support."
Ms Henderson said the 30 per cent test was to remain.
"For the JobKeeper extension period between January and March 2021, eligible businesses must satisfy the actual decline in turnover test for the December quarter," she said.
"This means that for business with a turnover of $1 billion or less, it must have experienced a revenue decline of 30 per cent in the December quarter.
"These changes are all about assisting Australian businesses that need it the most with scalable and proportionate economic supports."