MP Pat Conaghan wants JobKeeper extended as Business NSW survey paints "stark" picture

The survey tested 1000 businesses from across the state.

And the impacts of the JobKeeper scheme on business is not lost on member for Cowper Pat Conaghan who says the federal government must continue the program beyond the September deadline.

"To remove this life-line to those workers in a time where businesses are still struggling to rebuild is counterproductive to the original intent of the scheme," Mr Conaghan said.

"In my view, JobKeeper must continue past the original September deadline to support specific industries such as the tourism and hospitality sectors, particularly in regional and rural Australia where the economic recovery will be vastly different to more densely-populated communities."

Business NSW regional manager Mid North Coast Kellon Beard described the statistics as "stark, but not surprising".

"Two in five or 44 per cent of businesses that participated in the survey say they would have closed without JobKeeper," he said.

"While three out of four - 74 per cent - say staff are much better off because of the government program.

"And two in three or 65 per cent say JobKeeper will help their business to "snap back" (once the economy begins to recovery)."

Mr Beard said those figures indicated that the government needs to think very carefully about how it winds back JobKeeper.

The program is due to end in September, although the federal government says it will continually monitor the impacts of the program.

"The survey results make for stark reading and don't paint a promising picture for the Mid-North Coast region," Mr Beard said.

"Business NSW has been saying for some time that September was going to be the month where the true impacts of the epidemic hit home with JobKeeper set to end and a number of deferral measures the banks initiated at the start of the pandemic also due to expire.

"Business NSW is continuing to lobby for a more targeted supportive package for business post September, especially for those dependent on international tourists.

"Industries least likely to be running normally by end of JobKeeper include, arts and recreation services; accommodation and food services; other services; education and training; administrative and support services; transport, postal and warehousing; and, construction.

"It is also necessary to review the level of payment, particularly to workers who are being paid more under JobKeeper than what they were earning before COVID."

The survey also revealed that more than one in three businesses - 40 per cent - have no plan to manage their business when JobKeeper payments stop.

While only one in two or 51 per cent will be able to maintain current hours/staffing levels when payments cease.

Mr Conaghan said JobKeeper has been essential for keeping people in a job and has maintained the strong working relationship required for a successful business.

"More importantly it has also allowed individuals and families to put food on the table," he said.

"As a government, I think we should acknowledge that those people on JobKeeper right now, are Australians who prior to the coronavirus pandemic had jobs and paid taxes, some for many years.

"In some instances, this is the first time in their working lives they have had to rely on government assistance.

Federal treasurer Josh Frydenberg will complete a review on JobKepper before a determination on its duration can be made.

The Treasurer has said the outcomes of the review will be provided during an economic and fiscal update with the Finance Minister on July 23.

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