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72% of businesses said government stimulus essential to survival

Adrian Flores
Adrian Flores
18 November 2020 1 minute readShare
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Almost three out of four business owners admitted that government stimulus packages were essential to their business survival, according to a survey.

The survey from Money.com.au also revealed that the majority of those business owners stated that JobKeeper made the biggest impact on their business.

Among the range of government stimulus available to businesses, 69 per cent accepted JobKeeper payments to retain employees, 16 per cent received tax-free payments through the cash flow boost scheme, while 14 per cent claimed deductions on eligible asset purchases under the instant asset write-off measure, and just 2 per cent took out finance linked to the SME Guarantee Scheme.

By state, the greater proportion of businesses that benefited from the stimulus were in NSW, with 82 per cent of NSW businesses viewing the measures as essential to their survival, followed by 72 per cent of those in Victoria and 58 per cent in Queensland.

Further, two-thirds (69 per cent) of business owners cited JobKeeper as the most helpful stimulus measure.

JobKeeper was considered the most helpful scheme among 75 per cent of Victorian businesses, followed by 69 per cent of those in NSW, 63 per cent in Queensland and 40 per cent in South Australia.

The Treasury estimates that Victorians will make up 60 per cent of those on JobKeeper over the December 2020 and March 2021 quarters, as a result of the extended lockdowns and social restrictions across the state.

“With many stimulus packages set to wind down next year, including further cuts to JobKeeper in January, it’s likely that ‘zombie’ businesses who have kept afloat this year due to government incentives will cease to exist next year,” said financial adviser and Money.com.au spokesperson Helen Baker.

“It is important for business owners to pivot their offering and service if they are struggling and look for other ways to increase revenue. Reworking relationships with suppliers and clients will be particularly crucial during this time.”

The Money.com.au survey was based on an independent panel of 121 Australian business owners who accepted government stimulus.

72% of businesses said government stimulus essential to survival
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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