Coronavirus and Australian business – The potential effect of a pandemic
We’re enduring some interesting times today, with the ever-evolving coronavirus and Australian business taking hits left right and centre. With an estimated 1 in 6 Australian businesses already reporting some kind of loss due to the recent Coronavirus pandemic, experts are predicting a decade-long recovery period for the domestic economy, and that’s after the federal governments near $18 billion injection into the pockets of consumers.
We don’t know the long-term extent of the damage this virus will have on Australian business. There’s simply no crystal ball for virus pandemics, which is one of the many reasons why business owners need to be as vigilant as they can with the information they have available to them.
So, what does this mean for Australian business?
A recent report from PWC Australia has outlined the possible economic consequences of the Coronavirus pandemic.
- Labour input will take a hit as more get sick and are unable to work.
- The global economy will suffer a reduction in economy-wide productivity of capital.
- There will be an increased cost to international trade, particularly between Australia and China.
- Discretionary spending companies will experience a slump in sales, as more consumers tighten their belts to preserve funds for necessities.
- Australia’s GDP will experience losses of up to $34.2 billion (1.32%).
Sure – many businesses will have to make some changes to secure continuity for years to come.
Here’s what you need to know about the Coronavirus and Australian business and how you can make changes to help your business weather the storm.
With more people spending time at home and less in stores, consumers will still have access to your products from the comfort of their homes. An e-commerce site is relatively simple to set up, but it makes for more efficient spending from a consumers perspective.
Tip: By going a step further in offering a gift card service, you are providing a service that immediately puts cash into the business.
Market to local consumers
In times of stress and uncertainty, consumers will go where they’re most familiar. In this case, local businesses are close to homes and are easy to access. Encourage your local shoppers to stock up on your products for self-isolation periods and offer gift cards and online store merchandise for online shoppers.
For local restaurants and cafes, consider offering a 15% discount on takeaway orders. Discounts are a great way to entice customers to purchase from you but feel more comfortable at home.
If you’re not yet offering deliveries from a meal delivery service like Uber Eats, Deliveroo or Menulog, consider signing on with them.
Take advantage of cashflow concessions.
The Australian government has recently announced concessions to Australian businesses, to help keep employees on and manage the ebbs and flows of cashflow.
For businesses with under $50 million in aggregated annual turnover, these new concessions will cover the costs of employee wages, and salaries equal to 50% of PAYG withheld for businesses that withhold tax, with a minimum of $2,000 and a maximum of $25,000 over six months.
Apprentices and trainees will also be protected, with assistance to help small businesses retain them, by offering a wage subsidy of 50% over nine months. A maximum subsidy of $21,000 will also be available for companies who employ less than 20 full-time employees and who employ an apprentice or trainee. The same support will be available to a new employer wishing to hire an apprentice or trainee.
Want to find out more information about the effects of Coronavirus and Australian business?
It’s uncertain how tough the effect of the Coronavirus epidemic and its impact on Australian business. But, our team of dedicated experts are here to answer all your questions and lend a helping hand in any way that we can.
Speak to someone from Australia PEO to find out what we can do to help ensure your business’s longevity for years to come.
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