Businesses expect ongoing COVID-19 financial impacts

Almost three quarters of Australian businesses (72%) reported that reduced cash flow is expected to have an adverse impact on business over the next two months, according to results from the third Australian Bureau of Statistics (ABS) survey on Business Impacts of COVID-19.

ABS Head of Industry Statistics John Shepherd said reduced demand for goods and services was expected to impact about seven in ten businesses (69%) over the next two months, while two in five businesses (41%) expect a reduced ability to pay operating expenses.

The survey also found that three in five (61%) businesses had registered or intended to register for the JobKeeper Payment scheme.

“Of those businesses registered or intending to register, 73% expected more than half of their employees to the eligible for the scheme,” Mr Shepherd said.

“The survey also found that of the businesses that did not intend to register for the JobKeeper Payment scheme, 55% reported that it was because the business was not eligible. Less than one in ten (7%) reported not registering due to insufficient cash flow to continue paying staff before JobKeeper payments commence.”

This survey is part of a series of additional products the ABS is releasing to measure the economic impact of COVID-19. Data was collected between the 22 April and 28 April 2020. Further information is available in Business Indicators, Business Impacts of COVID-19 (cat. no. 5676.0.55.003).

The ABS thanks all those who contributed data to this release.