ABS update: Businesses to expect ongoing COVID-19 negative financial impacts

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The ABS has reported that almost three-quarters of Australian businesses are predicted to experience a reduced cash flow over the next two months as a result of COVID-19 and its business impacts.

The reduction in cash flow is being caused by the decrease in demand for goods and services. According to the ABS, 70% of businesses will be negatively affected by decreased demands and 41% of businesses will have their ability to pay operating expenses reduced. Approximately 61% of businesses are also registered or intending to register for the JobKeeper Payment scheme, highlighting the large extent of the adverse economic effects of COVID-19.

Out of the Australian businesses which did not apply for the JobKeeper scheme, 55% reported that it was because the business was not eligible, while 7% reported not registering due to insufficient cash flow to continue to pay (and backpay) staff before they are able to receive the JobKeeper funds in early May.

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