Financial support needed for businesses harmed
by lockdowns
• Businesses cannot continue to absorb lockdown losses.
• Severely impacted businesses need financial support to survive lockdowns.
• Federal, state and territory governments must work together to deliver a
national response.
• Financial support should be standardised, scaleable, targeted and rapidly
deployed.
Future lockdowns are foreseeable as we continue to deal with the impacts of
COVID-19. Businesses cannot continue to absorb losses created by snap lockdowns
and border closures. Federal, state and territory governments must work
together to provide financial support to businesses severely impacted by
lockdowns.
CPA Australia Chief Executive Officer, Andrew Hunter said, “Most Australian
states have implemented at least one snap lockdown. Each time, many businesses
have experienced significant, unrecoverable losses.
“We’ve been living with COVID-19 for more than a year now. JobKeeper ends next
month and we still don’t have a substitute for businesses that are compulsorily
closed or those otherwise impacted by lockdowns, such as suppliers and
customers outside the lockdown areas.
“We understand the need for swift action to control the spread of COVID-19.
However, it seems businesses are being treated as an afterthought when making
lockdown decisions. If governments are going to rip the rug out from under them
at short notice, they need to provide a safety net.”
CPA Australia is calling on federal, state and territory governments to work
together to develop and deliver financial support to businesses severely
impacted by lockdowns. What this looks like in practice is a matter for our
governments, but we think it should be:
• Standardised (consistent across jurisdictions)
• Scaleable (to the duration of each lockdown)
• Targeted (to severely impacted businesses)
• Rapidly deployed (in hours not days or weeks)
Hunter said, “This is not a reaction to events in an individual state. The next
lockdown could occur anywhere in Australia.
“Sympathy won’t pay for spoilt produce, cancelled bookings and empty chairs at
empty tables. Businesses need more certainty – they need a coordinated national
response that will deliver help fast when the next lockdown occurs.”
CPA Australia first proposed a standardised model of disaster support for
businesses before the pandemic and reiterated calls for it in our 2021-22
Federal Budget Submission. Our proposal is equally applicable to natural
disasters such as bushfires and floods, as it is to the current circumstances.