The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called on the Victorian Government to go further in compensating small businesses, following the five-day lockdown over Valentine's Day weekend.
Carnell said that the support package recently announced by the Andrews' Government does not go far enough in compensating small businesses who were impacted by the lockdown, which saw many businesses miss out on a high-trade weekend.
"A snap five-day lockdown forced small businesses across the state to close their doors ahead of what was anticipated by many to be the busiest weekend of trade in months.
"While some small businesses are getting back on their feet, there are still many that are not.
"More than 11,000 business loans remain deferred and 493,000 businesses were still receiving JobKeeper in December 2020.
"Unfortunately the support package recently announced by the Victorian Government will not cover the costs that small businesses are being expected to absorb in the wake of this latest lockdown.
"The compensation package should cover all costs associated with running a business including lost stock, staff wages and rent," she said.
Meanwhile, many small businesses are also preparing for JobKeeper to end later this month, as well as having to pay full rent and deferred rent, depending on their agreement with their landlord.
Carnell has also expressed her concern for small businesses as the Australian Taxation Office (ATO) begins collecting unpaid debts.
Carnell said she is concerned small businesses may be subjected to the harsh debt recovery actions used prior to the COVID pandemic, given collectable debt owed to the ATO has peaked at $34 billion – the majority of which is owed by small business ($21 billion).
"The ATO rightly took a softer approach towards small businesses during the COVID crisis, but we don’t want to see a return to the extreme enforcement actions my office brought to light just a couple of years ago," Carnell said.
"Previous actions such as garnishee notices have crippled small businesses, so it is critical the ATO uses its powers proportionately and appropriately, particularly as small businesses work to get back on their feet," she said.
However, there is an avenue of help, with small businesses struggling with their finances able to access a new service through the Australian Banking Association.
"Struggling small businesses can now access a new Financial Assistance Hub, for help with repaying or restructuring bank loans.
"The Australian Banking Association (ABA) initiative has been created to provide tailored assistance to small business owners who are unable to meet their loan repayments," she said.