The Restaurant Association welcomed the announcement of a new support payment that recognised the sectors hardest hit by the move to the traffic light setting. However, there are significant issues with the eligibility criteria that actually makes it harder than ever to access for our industry.
The government has again acknowledged that hospitality has been hit hard by the latest Omicron developments, saying it is clear that the impact is putting a number of viable businesses at risk of not being able to operate.
However, in putting in place a new support package, the criteria to access it requires businesses to show
- a 40 percent drop in 7 consecutive days since 15 February
- compared to a 7 day consecutive period within the 6 weeks prior to the shift to Phase 2 (January 4 – February 14).
January is a traditionally quiet time of trading for many regions in our sector, particularly larger cities and CBDs – as everyone goes away. This was even more pronounced this year as everyone was eager to go away during this summer period so it was slower than a usual January period (members averaged 30 per cent decline in revenue compared to January 2021).
The Restaurant Association is challenging government on this – arguing that the comparison period extend at least to December 2021. This was still subdued trading for our industry but represents a better comparison period, which would allow more of those businesses genuinely struggling to access this desperately needed boost to their business.
Using the current criteria, comparing a week in February with a period in January, when a business is already in revenue decline, would in essence mean that business would need to be down substantially more than the required 40 per cent.
Details of the new support payment:
Businesses that are able to show a 40 per cent decrease in revenue within the six weeks prior to the shift to phase 2 will be able to apply for $4000 plus four hundred dollars per employee, capped at $24,000 or 50 employees. This is a fortnightly payment, for 6 weeks (3 payments in total).