Cashflow may impede JobKeeper scheme

Lack of cashflow in local businesses may preclude them from taking advantage of the Federal Government's JobKeeper scheme.

Ettalong cafe owner Mr Chris Perkins said he was unsure if he would apply for the scheme.

"If we do come on board with the scheme, we need to find $3000 per employee per month to access the funds.

"There's a lot of small businesses that really don't have any ability to do that.

"That could mean taking out a bank loan if you want to be good to your staff and keep them on, but if re-payments are simply deferred, this could lead to bigger challenges for businesses down the road."

Business NSW Central Coast director Ms Paula Martin said business conditions on the Coast continued to deteriorate rapidly, with a doubling of revenue losses due to the coronavirus reported over a two-week period from March 23.

She said the latest Business Conditions Survey showed that across the Central Coast in the first quarter of 2020, business confidence decreased by over 14 per cent, with 40 per cent of responding businesses declaring a drop in total sales revenues.

"We have seen a dramatic change from local business investing to grow their business last quarter to a complete refocus on reducing business costs.

"Maintaining business solvency has jumped three-fold and sharp rises in the cost of goods have now become the top costs for local businesses."

SOURCE:

Media release, 9 Apr 2020

Paula Martin, Business NSW Central Coast

Interview (Haak Barry), 16 Apr 2020

Chis Perkins, Helado cafe