While COVID-19 has caused some real pain for retail, tourism and hospitality business in our region,plenty of businesses in our region haven’t suffered too much ill effect from COVID-19 to date, due to:

• the strength of the local economy on the back of the mining sector
• agriculture has been largely unaffected to date
• building sector has been strong and uninterrupted along with Home Builder Grants
• government handouts in the form of the Cash Flow Boost, apprentice subsidies, Jobkeeper and Jobseeker

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Our review of our business clients revealed that many businesses have actually performed better for 2019/20 than past years despite the interruptions caused by the pandemic.

Our region’s economy is significantly affected by the coal industry and the recent reduction in the spot price of coal to just over $50 per tonne on the back of decreased activity caused by COVID-19,is a cause for concern in our region when you consider that in late 2018 the price was over $100 per tonne. Recently there were between 400-500 contractors jobs slashed and the current spot price makes it uneconomical for some producers to mine their resources.   This presents a real risk for business in our region that is so dependant on the mining sector.

The impending end of Jobkeeper also presents a major risk to business with plenty of employers only able to keep staff employed as a result of the government handout, with a real risk of increased unemployment when Jobkeeper ends. The recent announcement of extensions to the Jobkeeper program is welcome news but the number of businesses who will be eligible will greatly reduce.

The building sector was predicted to start to feel the effects of COVID-19 by about August but the Government’s home builder initiative has certainly provided a spike in demand that may possibly avert this.

Business getting back to normal as restrictions are eased is the best remedy for our local economy, but this needs to be tempered with controlling the risk of a pandemic as a second wave would be disastrous for our region.

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What is our advice to business owners?

• If your business is suffering from the effects of COVID-19, seek advice from your accountant to ensure you are maximising the government assistance available, taking steps to protect yourself financially, and making the best of whatever opportunities are out there for your business. Plus planning how to bounce back to full strength when the opportunity presents itself.
• If you have prospered during COVID-19(and many businesses have), you aren’t out of the woods yet as the decreasing coal price and end of Government assistance may still affect your business both directly and indirectly.
• The old principles of business still apply…..be visible to ensure you get your share of the market, manage your business well both financially and your people, provide excellent customer service and above all stay positive. Oh, and stay in touch with your accountant as they can be invaluable to your business in tough times.
• Treat CASH AS KING – look to keep your cash available to take advantage of business opportunities and deal with crisis as they develop.

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