“Small Businesses…Have Been Obliterated By The Lockdown Measures.”

A daily email by free market think tank the Institute of Public Affairs, providing the latest economic data and policy measures for journalists, commentators and IPA members.

Daily IPA comment, attributable to Daniel Wild, Director of Research at the Institute of Public Affairs:

“Small businesses, which are the heart and soul of communities around Australia, have been obliterated by the lockdown measures.”

“Thousands of small businesses which have shut due to the government-imposed lockdown measures will never re-open again. High Streets across the nation will be permanently disfigured.”

“Governments must cut red tape and carve small businesses out of the job-destroying Fair Work Act to give the remaining small businesses which are still open a fighting chance of surviving.”

Research prepared by IPA Research Fellows Kurt Wallace and Cian Hussey. 

Latest Changes

Australia

• 7,045 confirmed cases and 98 deaths. There are 580 active cases and 6,367 recoveries. There are 50 cases in hospital and 16 of those are in intensive care.
• The Victorian government has announced a schedule for easing restrictions on cafes, restaurants, and pubs:
  • From 1 June cafes, restaurants, and pubs will be allowed to serve 20 people per enclosed area.
  • From 22 June the restriction may be raised to 50 people.
  • From the middle of July the restriction may be raised to 100 people.
• Transport for NSW has announced public transport changes including:
  • Reduced passenger number limits on buses, trains, and ferries.
  • Increased parking options to facilitate commuting by car.
  • Increased cycling and walking options.
  • Increased transport services to reduce crowding.
• ANU analysis of the ANUpoll (a longitudinal survey) has revealed the negative economic impact on self-employed Australians.
  • Hours worked has dropped by 32 per cent for the self-employed compared to a 16 per cent drop for all employees.
  • Nearly a third of the self-employed reported that their business would be unviable if financial trends continued for two months.
  • More than eight out of 10 self-employed reported that their profits have taken a significant hit.

Labour force paid by the government

72.5 per cent of the labour force is either directly employed by Commonwealth and state governments or local councils, or is in receipt of the JobSeeker unemployment payment or the JobKeeper wage subsidy:

• Public sector: 2 million (15.1 per cent of labour force).
• JobSeeker: 1.6 million (12.1 per cent of labour force).
• JobKeeper: 6 million (45.3 per cent of labour force).
• Total: 9.6 million (72.5 per cent of labour force).
• Labour force: 13.24 million.

Schools

• New South Wales – Public and Catholic schools will return to face-to-face classes one day a week (year 12 students will return to as many classes as the school can provide). The Berejiklian government will monitor for two weeks before bringing classes back full-time. Independent schools are making their own decisions.
• Victoria – A staggered return to classrooms will begin on May 26, with prep, grades one and two, and years 11 and 12 returning. Students in years three to 10 will return on June 9.
• Queensland – From May 11 kindergarten, prep and years 1, 11 and 12 return. Remaining students planned to return from May 25.
• Western Australia – Face-to-face teaching in place for all students, but attendance is optional until May 18.
• South Australia – Schools reopened and students encouraged to attend.
• Tasmania – Home-learning still in place, but schools open for parents who are unable to supervise their children.
• Northern Territory – Returned to classrooms on April 20.
• ACT – Plan to return during term 2. Primary school children, and year 7 and 12 students will return first.

Plans to lift restrictions

NSW

Stage 1

• Begins on 15 May.
• Home gatherings limited to a maximum of five visitors from separate households.
• Gathering limit increased to 10 people for outdoor activities.
• Weddings limited to 10 guests.
• Funerals allowed 20 people indoors and 30 people outdoors.
• Religious gatherings limited to 10 people.

Victoria

Stage 1

• Begins on 13 May.
• Home gatherings limited to a maximum of five visitors from separate households.
• Gathering limit increased to 10 people for outdoor activities, and religious gatherings.
• Weddings will be limited to 10 people plus the couple and celebrant.
• Funerals allowed 20 people indoors and 30 people outdoors.
• Food and drink businesses remain limited to takeaway and home delivery.

Schedule for cafes, restaurants, and pubs

• On 1 June cafes, restaurants, and pubs will be allowed to serve 20 people per enclosed area.
• From 22 June the restriction may be raised to 50 people.
• From the middle of July the restriction may be raised to 100 people.

Queensland

Stage 1

• Begins on 15 May.
• Home gatherings limited to a maximum of five visitors from separate households.
• Gatherings allowed for up to 10 people for most outdoor non-contact activities, libraries, weddings, religious services.
• Funerals up to 20 people indoors or 30 people outdoors.
• Recreational travel allowed within 150km of home in metro areas. Travel up to 500km from home is permitted in regional areas, and travellers can stay in a location (accommodation, family or friend) overnight.
• 10 person maximum for dining in at restaurants, cafes, pubs, licensed clubs, RSLs and hotels. 20 person limit for licensed venues in regional areas.

Stage 2

• Begins on 12 June.
• Gatherings of up to 20 people.
• Funerals allowed up to 50 people.
• Recreational travel limit raised to 250km. Camping and accommodation restrictions lifted, including caravan parks.

Stage 3

• Begins on 10 July
• Gatherings of up to 100 people.

South Australia

Stage 1

• Begins on 11 May.
• Gathering limit increased to 10 people.
• Funerals allowed up to 20 people indoors and 30 people outdoors.

Stage 2

• Begins from 8 June
• Gathering limit increased to 20 people.

Western Australia

Stage 1

• Stage 1 has been in place since 27 April.

Stage 2

• Begins on 18 May.
• Public gathering limit increased to 20 people.
• Weddings and funerals allowed up to 20 people indoors and 30 people outdoors.
• Some regional travel bans remain in place.

Stage 3

• Due to begin around four weeks after stage 2.

Tasmania

Stage 1

• Begins on 18 May.
• Gatherings increased to 10 people.
• Households capped at 5 visitors.
• 30 people allowed at outdoor funerals. Funerals increased to a 20 person limit on 11 May.

Stage 2

• Due to begin on 15 June.
• Gatherings increased to a 20 person limit.
• Review of household visitor restrictions.
• Funeral limit lifted to 50 people.

Stage 3

• Due to begin on 13 July.
• Gatherings maximum limit will be lifted to between 50 and 100 people.
• Aged care homes will be allowed five visitors and multiple visits.

Northern Territory

Stage 1

• Began on 1 May.
• Restrictions lifted on a host of indoor and outdoor recreational activities.

Stage 2

• Due to begin on 15 May.
• More restrictions lifted on businesses, including food services, gyms, and public libraries.

Stage 3

• Due to begin on 5 June.

ACT

Stage 1

• Began on 9 May.
• Gathering limit lifted to a maximum of 10 people for both indoor and outdoor gatherings. Includes religious ceremonies, outdoor boot camps, and real estate open houses and auctions.
• Home gatherings are limited to 10 people with the exception of where two households coming together is more than 10 people.
• Weddings allowed 10 guests.
• Funerals allowed 20 people indoors and 30 people outdoors.