The ABS conducted a survey on the ‘Business Impacts of COVID-19′ which showed that 66% or Australian businesses had experienced a reduction in their turnover or cash flow as a result of the impacts of COVID-19.
The COVID-19 situation has also forced many businesses to make compromises when it comes to how they need to run their business to keep it going. With businesses having to reduce as much physical contact as possible, two in five businesses (38%) have made changes to the way they deliver their products or services. This includes shifting and adapting to online services, as many non-essential businesses have been directed to avoid trading in physical stores as well as customers being told to stay home aside from essential activities.
Financial pressure and abandonment of physical trading have influenced over a third of businesses to renegotiate their lease and rental arrangements, with a quarter of businesses also deferring loan payments.
Additionally, 47% of businesses have made alterations to their workforce arrangements due to the effects of COVID-19. This includes businesses temporarily making reductions to staff hours, or increasing them depending on the nature of business. Employers have also been putting workers on leave or changing the location of where their staff is to undertake work duties, such as working from home.
This data was collected the week commencing 30 March 2020.