Insurance SMEs report rising concern over JobKeeper's end
A new survey has revealed growing distress about the impending loss of JobKeeper next month among Australia’s small businesses, particularly in insurance and finance.
The number of respondents in insurance and finance saying losing JobKeeper will have a major impact on them nearly doubled to 59%, a Sensis survey of 1000 small businesses in January found, compared with just 30% in November. Almost a third of those surveyed were receiving the assistance.
JobKeeper, which was introduced by the Federal Government last year to help businesses survive the COVID-19 pandemic, concludes at the end of March.
“We can see over just three months that the attitude of business owners has changed,” Sensis CEO John Allan says.
The survey found 90% of those polled felt the loss of JobKeeper would have an impact on their business, ranging from moderate to major.
The number of small business owners across all sectors saying the loss of JobKeeper will have a major impact on their business grew from 29% in November to 39% in January. A further 51% of business owners said it will have a moderate impact.
Just 10% said it would make no difference.
Businesses in WA had a major change of heart, with the December figure of 12% predicting a major impact jumping to 56% in January.
“Perth has gone into a five-day lockdown and new restrictions have been introduced in Victoria. This is likely to exacerbate the loss of business confidence in both states and dent the performance of the local economy,” Mr Allan said.
Only two of 10 industries surveyed – construction and hospitality - were less concerned than in the previous poll.
Mr Allan says he believes many businesses will turn to the JobMaker program which offers payments to businesses that increase their headcounts.