Two Thirds Of Oz Businesses Have Lost Revenue Due To COVID-19
In the ABS’s June business survey on the impacts of the COVID-19 crisis, two thirds of all businesses reported that revenue had decreased compared to this time last year. Furthermore, almost one-in-three of those businesses reported lost revenues of 50% or more.
By comparison, only 8% of businesses said that revenue was higher than it was a year ago.
Education and Training has been hit the hardest, likely due to COVID-19 travel restrictions, with 87% of businesses in this sector reporting a fall in revenue.
This was followed by Accommodation and Food Services (63%), and Arts and Recreation Services (60%), though these areas are likely to make a recovery in the months ahead as domestic travel opens up.
The ABS also asked businesses to estimate the length of time that, under current conditions, operations could be supported by currently available cash on hand. While 36% said their businesses could last 6 months or more, 19% said they would last 3-6 months, 21% said they would last 1-3 months, and 8% said they would last less than a month (some 16% chose ‘do not know’).
This data would suggest that many businesses are still relying on the government’s $70 billion JobKeeper package to keep operations afloat. As much as 86% of businesses have sought advice about government support measures, while 75% have gained external advice on regulation and compliance.
Some 73% of total businesses are operating under modified conditions due to COVID-19, up marginally from 70% in May. “The survey found that almost two thirds (65 per cent) of all business have introduced new hygiene protocols and practices, and 57% have made changes to meet physical distancing requirements,” said John Shepard, ABS Head of Industry Statistics.