2. Financial Support and Key Initiatives
2.5 Payroll Tax – Continued payroll tax relief until at least 30 June 2021 Payroll tax relief provided by the Tasmanian Government during the lockdown has been essential in assisting businesses to remain viable. As businesses look to re-employ staff as they re-open, continuation of this funding support will be critical until these businesses experience the cash flow and turn over needed to support the ongoing employment of staff. 2.6 Energy and other Utility Costs – Funding support until at least 31 December 2020. Energy is one of the major costs in operating hospitality businesses and enterprises and the funding support provided by the Tasmanian Government during the pandemic played an important role in many eligible small businesses remaining viable. This support remains important as businesses look to re-open, in a circumstance where turnover may remain low for some time and where they have little in the way of cash reserves. This issue is of equal importance to larger sized businesses, in many cases needing a much greater turnover to meet their ongoing operating costs. For these reasons the Tasmanian Government should continue to provide funding assistance to Tasmania’s hospitality businesses to meet their energy costs, regardless of size and regardless of who they contract their energy through, until at least the end of the 2020 calendar year. It needs to be recognised that many businesses are not supplied by Aurora as their services are more expensive than other providers. Venues should not be disadvantaged because of this. Similarly, the Tasmanian Government should provide funding assistance to all Tasmania’s hospitality businesses in meeting their water and sewerage charges until the end of the 2020 calendar year, as well as a moratorium on current grease trap upgrades until such time as the industry is back on its feet. 2.7 Interest Free Loans scheme - supporting businesses reinvesting in the industry. Access to capital is becoming tighter as the banks and financial institutions take a more risk averse position, or place even stricter requirements on lenders. This presents a potential brake on investment, critical in being able to promote the rebuilding of the industry. A government led interest free loan scheme can play an important role in providing confidence for hospitality businesses reinvesting in their businesses at this critical time. 2.8 Business, Legal and Marketing Services – access to free advisory services until 30 June 2021. The free Collins SBA program funded by the Tasmanian Government during the pandemic played a vital role in assisting Tasmania’s hospitality businesses and enterprises in navigating their way through the lockdown. In many cases venues looking to re-open will need to refinance their businesses, renegotiate their leases, or look to market their businesses in the post-COVID-19 environment (which includes the current loss of interstate and international visitors) and business, legal and marketing advice will be essential if they are to remain viable. Government support in accessing these services will play a major role in providing business owners and operators with the confidence needed to re-open and re-establish their businesses.
2.1 Jobkeeper - Continued Jobkeeper funding until at least 31 December 2020.
Without JobKeeker, the Tasmanian hospitality industry would have been decimated. As staff wages are the major operating cost faced by hospitality businesses looking to re-open, continuation of the JobKeeper support will be critical until these businesses experience the cash flow and turn over needed to support the ongoing employment of staff. 2.2 Playing Safe – A campaign to encourage Tasmanians to behave responsibly. While the behaviour of Tasmanians during the lockdown and in the early days of easing restrictions was exemplary, the feedback from the hospitality industry indicates that in more recent times patrons are beginning to ignore social distancing obligations. While it is the responsibility of businesses to manage patrons within their venues, it is evident that this is becoming more difficult as the expectations of patrons revert to pre-COVID-19 times. While pre-booking assists some businesses in better managing their venues, difficulties and tensions are beginning to occur with managing walk-ins and general patron behaviour inside the venue, many not complying with instruction or good social distancing practice. Tasmania does not want to find itself in the same situation that Victoria is currently faced with and the behaviour of the community is a vital part of keeping Tasmania safe. For this reason, as the restrictions are lifted, the community needs to be continuously reminded to behave in a COVID-19 safe manner when visiting their local venues, while they enjoy watching their children back on the playing field, as they shop at the local supermarket or any other pastime or activity where social distancing is needed. For these reasons the Tasmanian Government should produce and deliver a campaign that continually reminds the community of their role and responsibility in managing the Coronavirus pandemic and in keeping all Tasmanians safe. 2.3 Rise in Insurance – Need to address the exponential rise in insurance premiums. The recent bush fires across Australia have seen an exponential rise in insurance premiums for hospitality venues in Australia, including Tasmania. In some instances, including Tasmania, it has become practically impossible to find a willing insurer. COVID-19 may well see an even greater rise in premiums, making it all the more difficult for businesses to ensure their venues are properly insured. This is an immediate issue as venues look to re-open, as well as posing a long-term impact on the viability of Tasmania’s hospitality businesses. It is an issue that has a serious impact across the industry and government strategies or policies are needed to ensure that venues can continue to be insured. 2.4 Hardship grants – Continuation of the hardship grants until at least 31 December 2020. The hardship grants available during the lockdown were vital in ensuring many venues remained afloat. Feedback from the industry is that these grants need to be continued and that they will be critical as business owners look to re-open their venues, many in the situation where they have little in the way of cash reserves and in an environment where future turnover will be limited. This will be particularly the case in the regional areas and the hardship grants should remain on offer as the industry looks to re-open. Venues that missed out in the first round should be immediately looked at for funding assistance.
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