+1-888-308-5802     
News Contact Us

Deloitte says 10% of businesses may shut down due to COVID-19 crisis

Author : Pankaj Singh | Published Date : 2020-07-21 

Deloitte Access Economics has reportedly announced that over 10% of businesses in the country may face risks of closure or failure.

The prevalent business issues are likely to come to the fore when the JobKeeper payment and loan repayment deferral schemes unfavorably come to an end. These schemes and payments are likely to be closed in September. The wage subsidy scheme has been designed to cover a portion of the wage costs of employers, providing a fortnightly payment of $1,500 to the workers. The JobKeeper payments are reportedly set to be closed on 27th September.

Additionally, economists have warned that several businesses in Australia could be forced to shut down due to the economic downturn posed by the ongoing COVID-19 crisis.

Deloitte further noted that nearly 240,000 businesses in transport, professional services, and hospitality, among other industries were at high risks due to financial challenges. It has stated that over 40% of the businesses that are within the category of high-risk failure had cash to remain operational only for the next 3 months.

Business environment may improve in the next 3 months as coronavirus restrictions are starting to ease in several regions. However, without the support of JobKeeper, businesses are likely to face challenges in recovery from the crisis. Tasmania, Victoria, and South Wales have the highest business proportions that access the JobKeeper payments.

Moreover, Deloitte has stated that the 2nd implementation of lockdown measures and restrictions in Victoria would give a higher level of stress on businesses and their reliance on wage subsidy schemes. The Northern and Australian Capital Territories were less impacted by the fiscal cliff owing to a quick ease in restrictions and high presence of public sector workers. The analysis of Deloitte is based on the Federal Government and the Australian Bureau of Statistics data.

In addition, Canberra is anticipated to announce specific packages to aid businesses beyond September. Suppliers, insurers, and creditors are mandated to prepare various contingency plans to manage increased debts.

Source credit:

https://www.news.com.au/finance/economy/australian-economy/deloitte-says-10-per-cent-of-businesses-could-close-due-to-impending-september-fiscal-cliff/news-story/e0002a72e04316ded2291bb36df3ed08

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

MAS grants SRFB privileges to StanChart under improved framework

Published Date: 2020-08-03         Author: Pankaj Singh

The Monetary Authority of Singapore (MAS), Singapore’s financial and central bank authority has reportedly awarded SRFB (Significantly Rooted Foreign Bank) privileges to Standard Chartered Singapore, which allows the bank to operate in additional places of business. The agency said in the p... Read More

Grofers records profitable growth, plans IPO listing in late 2021

Published Date: 2020-07-27         Author: Pankaj Singh

The COVID-19 pandemic has managed to stall numerous businesses worldwide. However, online grocery delivery firms have managed to amass considerable revenue growth over the months as a result of stern lockdown norms that have ensued consumers to opt for online food & grocery services. Indian o... Read More

U.S. to invest $1.95 billion in Pfizer & BioNTech for COVID-19 vaccine

Published Date: 2020-07-24         Author: Pankaj Singh

As the COVID-29 pandemic surges on, the Trump administration has reportedly invested nearly $2 billion in a new coronavirus vaccine contract with Pfizer and German pharma company BioNTech to produce mor than 100 million vaccine doses by the end of the year. The U.S. government plans to administer 50... Read More

© 2020 Fractovia. All Rights Reserved