‘Business hibernation only option to save struggling businesses’
Source: Publicaccountant
The government is due to announce its third stimulus under which it will seek to “hibernate” businesses to help them re-establish and rehire once the coronavirus pandemic has passed.
Addressing media on Friday, Prime Minister Scott Morrison said, “Part of that plan that we will be announcing will be to seek to hibernate Australian businesses.”
“We want these businesses to effectively go into hibernation, which means on the other side, the employees come back, the opportunities come back, the economy comes back,” he said.
Applauding his announcement, the small business ombudsman Kate Carnell said that the only way for small businesses to survive the coming months is if they can effectively hit pause for the time being.
“For businesses to bounce back when this health crisis is over, they need a holiday from all costs that they incur during this extremely difficult period,” said Ms Carnell.
“Small businesses – including those that are forced to shut their doors as well as those who suffer a significant loss of income – should be able to go into business hibernation.”
The details of the government’s business hibernation plan are still being considered.
Landlords, utility and service providers, telecommunications and all levels of government are expected to their part to help by putting their fees and charges on hold.
“Part of this needs to be a wage subsidy for staff that remain attached to the business. Those staff would need to be paid at least 60 per cent of their wage up to a maximum monthly amount. This of course would need a minimum safety net built in,” Ms Carnell suggested.
“We are at a critical tipping point, but we can get through this if we work together.”
The Prime Minister is expected to make further announcements over the coming days.
