Copy
Your monthly business update from Cameron Research
View this email in your browser

Just how important has JobKeeper been for SMEs? 


Over the past month of interviewing SMEs on their Covid 19 experiences, the importance of government stimulus – and in particular JobKeeper – has been highlighted time and again.  It is hard to remember a federal government initiative that has received such positive commentary from business owners – and while a handful mention that some staff are more interested in JobKeeper than in working – this has not blinded them to its importance.  Part of this is because business owners feel a huge responsibility toward their employees and JobKeeper has enabled them to (largely) maintain employment levels.  As one SME said ‘without it, you’ve got a catastrophe in employment’.  In fact, consider some of the superlatives they used to describe JobKeeper ... 'super-important' ... 'absolute lifesaver' ... 'best thing in the world' ... 'the only thing that's keeping us going' ... 'fantastic' ... 'huge - unbelievable' ... 'great' ... 'reassuring' ... 'shot of optimism'. 

On this topic, it is worth nothing that NONE of the business owners we have interviewed in the past month think that the government stimulus will ‘stop dead’ – they ALL think that stimulus will continue in some shape – for the simple reason that ‘it has to’ or mass-unemployment and business closure would be inevitable.

But consider their positivity about JobKeeper ... 
  
You cannot overemphasise how important JobKeeper has been.  It’s just ‘the difference’.  Without it you’ve got a catastrophe in employment.  It’s super-important.” (Shopfront/online cafes, 35 FTEs)
 
JobKeeper is the only thing that’s keeping us going with the city stores.  Cutting back on staff hours has also helped but JobKeeper is giving me the lion’s share of the wages.  I’m still losing money on those stores every month but it’s manageable thanks to JobKeeper.”  (Pharmacy, 40 FTEs) 
 
“Back in January, I thought oh God this is going to be tough but I had no idea it was going to get this bad.  Thank God the government stepped in the way they did with JobKeeper and help like that.  JobKeeper has been the best thing in the world.  It’s amazing because it’s allowed me to still keep my employees.  It gave me the security to step forward and I’m so incredibly grateful for it.”  (Recruitment, 4 FTEs)
 
“We would have been able to get through without JobKeeper but geez it’s helped.  You’re always told you should be able to cover your costs for 3-6 months, and we probably can, but JobKeeper has taken that pressure off.   And I can promise you, because of JobKeeper we’ve been able to invest in our business and our systems development and we will be employing a lot more people in 3 months’ time as a result … I also think that JobKeeper was that shot of optimism that people needed.” (FinTech, 12 FTEs)
 
"We got the BAS money and the $10,000 and JobKeeper.  It's been great.  I've actually been in front, I'm sure I'm making more money than I was before.  I'm not stressed at all now because we've got that extra money coming in." (Cafe, 4 FTEs) 

JobKeeper was great because it meant we could keep all our staff on.  We still had to reduce their hours, but it was definitely reassuring for them and for us.  It also acted as an incentive for them to stay.  It certainly helped in a very stressful time.”  (Physio, 15 FTEs)
 
JobKeeper has been fantastic.  But part of me isn’t in the mindset to take government handouts.  So that’s been a bit of an adjustment.” (Leadership Consultant, Sole Trader)
 
It’s just been huge.  Unbelievable really.  What a fantastic idea and result for everyone, it made everything doable and took so much pressure off.  I cannot imagine the stress if businesses didn’t get that money.”  (Vintage Photography, 2 FTEs)

 
It is noted that some people are unsure if they continue to receive JobKeeper if their business improves …
 
My revenue in May dropped by 30% even though my June has been quite good because of a contract win – so once you’re in, you’re in!  So we’re still getting JobKeeper.  I’m a bit worried though, I’m concerned the ATO is going to chase me, I’ll get audited because I’ve had a good June but my revenue in May WAS down so I did all the correct things.” (Call Centre, 12 FTEs)
 
JobKeeper’s been huge for us.  It’s unbelievable how much money it is, probably a third of our costs.  But the month of June won’t be anything like 30% down so I don’t know if that impacts on it – but my understanding is that if you were down 30% in April or March or whenever it was then you qualify until September, regardless of what else happens.” (Physio, 50 FTEs)
 
We were concerned we’d lose JobKeeper because since March and April business has boomed – BOOMED – but my accountant tells me that we’ll be okay.  I feel a bit guilty about receiving but hey, I’m coping!”  (Curtain design/installation, 4 FTEs)

 
Conclusion
 
Without government support a frightening number of SMEs would have been sunk.  It isn’t pretty but that is the reality of the situation.  The stimulus has meant that they have been able to retain many of their employees.  They will be eagerly watching the government’s update late this week to see what the JobKeeper scenario is moving forward.

Copyright © 2020 Cameron Research, All rights reserved.


Mobile: 0419 525 579

ross@cameronresearch.com.au
www.cameronresearch.com.au

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list


PO Box 636, Kew, Vic, 3101






This email was sent to <<Email Address>>
why did I get this?    unsubscribe from this list    update subscription preferences
Cameron Research · PO Box 636 · Kew, Vic 3101 · Australia

Email Marketing Powered by Mailchimp