See the second edition report on the impact of COVID-19 on businesses in Australia, produced by St. George Economics, on April 7, 2020
The Australian Bureau of Statistics (ABS) today released the results of the second edition of a survey highlighting the prevalence and nature of adverse impacts from COVID-19 experienced by businesses in late March/early April.
• The survey was conducted between 30 March and 3 April. The Federal government’s announcement of its third and largest stimulus package to support businesses during COVID-19 on 30 March was the same day the survey collection began.
• 66% of surveyed businesses said that they experienced a reduction in cash flow or turnover in the previous 2 weeks. Businesses in the accommodation & food services sector were hardest hit. Almost all firms surveyed in this industry reported a reduction in cash flow or turnover.
• 64% of businesses reported a reduction in demand over the previous two weeks. The accommodation & food services industry and the construction industry reported the greatest proportion of firms experiencing a reduction in demand.
• Many businesses have also had to make changes to their workforce arrangements; indeed, 47% of surveyed firms said they had made changes to their workforce. The most common change was the temporary reduction to the working hours of employees.
• The JobKeeper payment policy was announced the same day as the survey began and may have had an impact on the decisions of businesses for changes to their workforces.
• 38% of businesses surveyed said they have changed how they deliver their products and services, including shifting their offerings online.
• 24% of businesses said they have deferred interest payments on their loans while 26% said they had brought forward investment.
• 38% of businesses said they had renegotiated their property rental agreements.
• 29% of businesses reported difficulty in sourcing stock or raw materials.
• And 48% reported that government measures to contain the virus, such as social distancing, have impacted their operations.
• This report highlights that businesses have already seen a substantial impact to their cash flows in the current environment. It also highlights that businesses are trying to adapt and innovate in this challenging environment.
Download the report: Impacts of COVID-19 on Businesses
At Allsafe Insurance Brokers, we are committed to supporting our clients in any way possible during the outbreak of COVID-19. For questions about your business insurance or an insurance policy, get in touch with us today!