- FROM P1
One applicant, Newcastle optometrist Dom Willson, says turnover at the nine-person Darby Street practice has fallen by 80 per cent.
Mr Willson, whose Custom Eyecare Newcastle business has operated for 20 years, said he and his fellow director had paid five weeks of wages for nine people on the assumption that JobKeeper would "pan out" for them.
"Some of the advice we have had from human resources experts has been not to cover those wages unless you are certain you are getting JobKeeper," Mr Willson said. "I understand they have to give conservative advice but we are in a better position than some, in that we were able to cover the bill at least for a while without borrowing, despite having next to no turnover."
Mr Willson said two employees who had applied for permanent residency and were paying tax as Australian residents in the meantime were ruled ineligible for JobKeeper payments.
"But we have paid them and will continue to pay them because in their personal circumstances they are otherwise up a creek without a paddle," Mr Willson said.
James Shaw of Charlestown insolvency specialists Shaw Gidley said the mood during the first week of shutdown was "panic".
"The phone was running hot from people thinking of going into administration, but when the government announced its support and incentives the phones stopped ringing overnight," Mr Shaw said.
"My take is that business people are sitting back to see how to avail themselves of what's available, and to see how things play out in the long term.
"The money will help a lot of businesses survive but many will stick their heads in the sand and not do anything to adjust things structurally until they are forced to, by which time it's too late."
Mr Shaw said business had fallen so far that Shaw Gidley had been forced to register for JobKeeper and had sent in the application forms.
The insolvency industry's peak body, Australian Restructuring Insolvency and Turnaround Association (ARITA), says the COVID-19 law changes have given businesses "breathing space in an unprecedented environment".
ARITA chief executive John Winter said he understood criticisms over the month-long delay in sending out JobKeeper payments, but he was in regular contact with Treasury officials and said the government "knows there are rough edges on these policies but it's looking at the quickest way to do things, and with the best of intentions".
"But we expect four months from now that a lot of firms will start to go broke and have nothing left to pay the bills when JobKeeper stops," Mr Winter said.
