SMALL BUSINESS PACKAGE WELCOME BUT PROPER IMPLEMENTATION AND CONTINUED SUPPORT NEEDED

January 20, 2020

Labor welcomes the government’s package for small businesses affected by bushfires, noting it follows Labor’s calls for immediate and effective action.

 

While we welcome the announcement, small businesses need cash flow injections now and clear guidelines on access to grants and eligibility criteria must be provided. Urgent action must be taken to ensure businesses don’t wait or miss out and can access the money available immediately.

 

Questions about the detail of the announcement still need to be answered, including:

 

• When will this money get to small businesses?
• What are the thresholds for indirectly affected small businesses?
• What suggestions from the government’s small business round table were not included in announcement?
• What constitutes “significant” loss of assets and income?
• Is a 30-minute average consultancy time for financial counsellors adequate for individual small business needs?
• If counsellors are operating from Canberra, what boots-on-the-ground financial counselling will be available?
• Will counsellors give guidance on the appropriateness of deferred tax arrangements, to avoid a tax shock later in the year?
• Deferred tax helps profitable businesses, but what assistance can be given to businesses who are marginal due to the sluggish economy?
• Will the government work with utilities and other big companies to help small businesses keep the water running, and keep up with energy bills?
• Has the Government proposed details to states for harmonised terms and eligibility as suggested in release?

 

Labor understands the difficulties that will be faced by small business over the coming months.

 

The Prime Minister has indicated the government will keep listening to small businesses to see if further support is needed. The government still has the opportunity to take up Labor’s suggestion to establish a business taskforce to provide a direct line of advice to government. This was created after the 2011 Queensland floods.

 

In 3-6 months when small businesses and bushfire affected communities continue to need support, this taskforce would continue to advise government.

 

The bushfires have had wide ranging implications, including in areas that are not directly impacted by the fires. Major cash flow issues will harm employment and the ability to simply pay the bills.

 

We have already seen many casual jobs lost due to the bushfire crisis. We are yet to see assistance for the workers needed for these small business to run. The government could consider wage subsidies to target bushfire affected areas.

 

We urge businesses to reach out for the help that is available in what are exceptional circumstances.

 

Labor encourages people to travel to bushfire affected  areas when it is safe to do so and support the local community.

 

Many small businesses have lost their livelihoods due to devastating bushfires and wonder how they can possibly rebuild and we therefore welcome the announcement today.