Lockdown to cost WA economy $245m, CCIWA survey shows

WA’s four-day lockdown is set to cost the WA economy around $245 million, CCIWA’s rapid-fire survey has found.

*Editor’s note: This story has been updated on Friday July 9 to reflect the Premier’s announcement. 

Premier Mark McGowan today (July 9) announced $3000 grants for small businesses impacted by the lockdown.

To access the program, visit the Small Business Development Corporation website.

CCIWA’s special rapid-fire survey, with 458 responses, showed an average expected financial impact of $26,864 per business. For WA’s small businesses, the average cost was $16,222 – much higher than the $8057 in April when the lockdown occurred during the ANZAC Day long weekend.

The survey found the sectors hardest hit by reduced turnover and sales were health, fitness and leisure centres (100 per cent), food (85 per cent), accommodation (85 per cent) and real estate (81 per cent).

Regional businesses have not been spared either, with an average expected impact of $10,404 due to reduced tourism spending and booking cancellations.

Asked to nominate a fair amount of compensation, businesses responded with an average figure of $5741.

CCIWA has shared the survey results with the State Government and called for a fair compensation package with the following features.

  • Businesses that declare lost turnover between 30–50 per cent (or alternatively up to $5000 in direct financial impacts) receive a $4000 payment.
  • Businesses that declare lost turnover above 50 per cent (or alternatively above $5000 in direct financial impacts) receive a $6000 payment.
  • The scheme should be open to regional businesses that have suffered booking cancellations and lost tourism expenditure.

The survey found 66 per cent of businesses experienced reduced sales/turnover, while 55 per cent had future bookings cancelled. Mental health concerns were nominated by 39 per cent of businesses, while 25 per cent had to stand down staff.

“For WA’s small businesses, lockdowns mean losing the income their families rely on,” said CCIWA Chief Economist Aaron Morey.

“It’s critical that WA fully supports small business owners who bear the financial burden on behalf of society, especially given the extraordinarily strong financial position of the State.”

Read the full report on CCIWA’s rapid-fire survey – Impacts of the Snap Lockdown on WA Business – here.

CCIWA’s COVID-19 page contains up-to-date information for businesses.

For help and guidance on navigating COVID-19 restrictions, contact CCIWA’s Employee Relations Advice Centre on (08) 9365 7660 or [email protected].

Share This Post

You may also be interested in

WA wage growth edges upwards to 4.7%
WA wage growth edges upwards to 4.7%
Wage growth has continued to climb higher, with data released last week revealing the Wage Price Index rose 0.8% over the December quarter in Western...
Read more »
Defence strategy offers direction, support for industry
Defence strategy offers direction, support for industry
The strategic rationale for a sovereign defence industrial base has been released the Federal Government, mapping out pathways for maximising support for Australian industry.
Read more »
Labour and housing shortages ongoing challenges
Labour and housing shortages ongoing challenges
Skilled labour shortages, climate reporting and better infrastructure investment to support new projects are among the challenges facing WA’s manufacturing sector. 
Read more »