State Member for Newcastle Tim Crakanthorp has slammed the NSW government’s new one-billion-dollar small business support package, deeming it “too little too late” for businesses across the state.
Announced on Sunday, the new COVID support package will commence on February 1 and seeks to relieve some of the financial devastation that has accompanied the Omicron wave.
The new package includes $700 million worth of support for small businesses, an expansion of small business fees and rebates, an extension of the commercial landlord grant and an $80 million package for the performing arts sector.
NSW Premier Dominic Perrottet recognised the “difficult time” small businesses had recently endured, and said the support packaged functioned to relieve financial pressures for closures associated with furloughed workforces and other COVID- 19 related hardships.
“We’ve got the backs of businesses, as we have throughout this entire pandemic and that is not going to change.”
The NSW Government revealed the Small Business Support Program helps businesses with an annual turnover of between $75,000 and $50 million that have experienced a decline in turnover of at least 40 per cent, by providing a payment covering up to 20 per cent of their weekly payroll.
Eligible businesses will receive a a minimum payment of $500 per week and a maximum payment of $5,000 per week.
In addition, the existing Small Business Fees and Charges rebate program will be extended from $2,000 to $3,000 and can be used to subsidise the cost of rapid antigen tests by 50 per cent.
The subsidised RAT measure aims to support worker availability by helping reduce costs to small businesses and enabling healthy staff who have been exposed to COVID-19, but test negative, to return to work.
While the rebate cannot be used retrospectively, the NSW Government said the ability to claim subsidised tests will commence in March when national RAT supplies are bolstered.
This will ensure tests remain accessible and affordable for businesses and people in the community in the meantime.
Additionally, commercial landlord relief has been extended until 13 March, meaning eligible landlords will receive $3,000 per month, per property, to provide rental relief to their tenants.
The NSW government also announced that $80 million has been allocated to the performing arts sector, and will underwrite ticket sales for events impacted by a drop in demand over the summer period.
“We know one sector of the economy has been hit particularly hard and that is the performing arts sector,” NSW Treasurer Matt Kean said.
“We’ll underwrite their ticket sales so they can continue with rehearsals, continue planning their event so they can get their performances on stage for the time when this wave will pass.”
“Half-baked”, says Crakanthorp
A statement from Crakanthorp’s office claimed the “half-baked support package” failed to support NSW businesses after a disastrous Christmas trading period and criticised it for its eligibility criteria.
“It will only be available to businesses who experienced a downturn of at least 40 per cent during January and expect to see that level of loss continue through February.”
For those who are eligible, small business applications will not open until mid-February.
“This will be 10 weeks since Newcastle’s first super spreader event and nine weeks after Newcastle MP Tim Crakanthorp first asked the NSW Government for help”, the statement said.
The MP also criticised the lack of retrospective payments, saying “the package does nothing for those who experienced their biggest losses in the lead up to Christmas, as no December trading is taken into account.”
“In what should have been the busiest time of the year for retail and hospitality, where they expected to recoup some of the losses from the 2021 lockdown, Newcastle was a ghost town,” he said.
Mr Crakanthorp said the package has been “designed to disqualify” businesses, claiming it “is nothing more than a box tick so this government can boast that they ‘helped’, but doesn’t come close to compensating for the damage their disgraceful ‘let it rip’ ideology did.”
Business Hunter defends NSW government aid
Business Hunter, formerly known as the Hunter Business Chamber, has defended the state government’s support, claiming the package will keep the doors of many local businesses open.
CEO Bob Hawes said “businesses have been crying out for support because of the dramatic impacts that Omicron has had on their operations, especially in what many hoped would be their busiest time.”
While he conceded that the package is “not as comprehensive as some may have wished”, Hawes said it aimed to help a wide variety of business owners who have suffered a downturn in their operations through no fault of their own.
“It is critical for the economy that as many businesses get through this crisis as possible.”
Business Hunter encouraged local businesses to access all support available to them, while promising to continue advocating for business sustainability policies at a government level.
“It really is a situation currently that every support piece counts and we want as many businesses in tact as possible so when the community starts engaging and spending again, the recovery is a lot quicker and comprehensive,” Hawes said.
“We want the Hunter business economy to endure this continued tumultuous period.”
Maia O’Connor