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COVID restrictions cost WA businesses $170m

The true cost of WA’s COVID-19 lockdown and interim measures has been revealed in CCIWA’s rapid-fire survey of the WA business community.

More than 350 businesses responded to the survey in just over 24 hours, revealing the average impact on business across the seven days is $25,200. For small businesses, the cost is $8,060. 

The total costs borne by WA businesses during that time is estimated at about $170 million.

View the full survey results here.

This comes as the State Government announced a compensation scheme, capped at $2,000 per business.

CCIWA CEO Chris Rodwell said while the chamber welcomes the WA Government’s announcement, the survey results clarify a strong case for the proposed relief to go further than the $2,000 cap.

“Thousands of businesses have made major sacrifices, forfeiting their livelihoods to safeguard the community. It is only fair that we do all we can to support them, especially given the extraordinarily strong financial position of the State,” he said.

“The chamber supported the three-day lockdown on the basis that the health advice deemed it necessary to protect the community, as well as our expectation that businesses would receive fair compensation for shouldering the financial burden.”

The State Government announced WA would go back to pre-lockdown conditions from 12.01am Saturday May 1, with some minor transitional restrictions including wearing masks indoors.

Only a quarter of the losses cited by business are expected to be recovered as restrictions ease. The extent to which businesses expect to claw back the lost revenue is much lower in the food (16% of losses), retail (10%), events (10%) and education (1%) sectors.

CCIWA has recommended the Government make $3,000 and $5,000 payments to affected businesses, depending on the extent to which they are impacted.

The full details of CCIWA’s proposal are outlined in its media release.

For the latest information on the COVID-19 restrictions visit covid19.cciwasandstg.wpenginepowered.com or call ERAC on (08) 9365 7660 or email [email protected].

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