CPA urges government to commit to business support plan.

 

The Federal Government can avoid a “hard landing” by developing a post-lockdown business support strategy, according to professional accounting body, CPA Australia.

 

“New national arrangements on COVID-19 business supports are a positive development,” CPA Australia CEO Andrew Hunter, said. “The missing piece is what happens once a lockdown ends.

 

“The impact on businesses doesn’t stop the moment a government calls time on a lockdown. If support is withdrawn immediately, many businesses may experience a damaging hard landing. 

 

“By tapering business support for a couple of weeks post-lockdown, the government can soften the negative effects of withdrawing support,” Hunter said.

 

CPA Australia is calling for a national post-lockdown business support strategy, involving a combination of Commonwealth and state or territory supports for small-to-medium enterprises (SMEs). 

 

“We’ve participated in hundreds of discussions with governments, industry and members since the pandemic began. We’ve heard countless stories of lockdown hardship from business owners,”Hunter said.

 

“Based on our experience, a coordinated national approach, including direct and indirect supports, makes a big difference to businesses’ success after an extended lockdown.”

 

The CPA’s view is that a successful strategy will involve five elements delivered in the period immediately post-lockdown:

The CPA said the Federal Government needs to discuss a post-lockdown business support strategy at the next National Cabinet meeting,

 

Meantime, the Australian Retailers Association is calling for the return of the JobKeeper scheme to protect retail businesses and employees.