A recent survey has shown that border closures, recruitment issues and supply chain delays are anticipated to be the most significant pressures for Australian businesses over the next 12 months.

46 percent of respondents who participated in the survey believe that border closures will be a major factor in putting pressures on businesses, while 34 percent expect recruiting will contribute and 32 percent say supply chain delays will cause immense pressure on businesses.

The survey also outlined that traditional pressures causing distress, such as the availability of cash and rising cost bases, seem to be secondary pressures.

Gaining access to cash is not presenting a challenge to Australian businesses at the moment. This is mainly due to the success of government stimulus and availability of funding options which have been provided to businesses over the past 12 months.

Business owners who participated in last year’s survey speculated that insolvency activity would increase in 2021, as restrictions and government stimulus eased. Despite the end of JobKeeper and ongoing lockdowns, monthly external administrations remained approximately 50 percent lower than pre-Covid-19 levels in 2021.

Most turnaround professionals believe that government stimulus and financial support prevented a huge wave of external administrations in 2021, with other factors identified being rent and other moratoria, ATO relief, low interest rates, a lack of creditor action, cyclical and structural changes to the restructuring market.

Despite this, it is predicted that there will be a rise in demand for turnaround and insolvency services and advisory once vaccination targets are reached across the country.

Small Businesses Are Concerned About Having Confrontations with Unvaccinated Customers

Businesses across covid-19 ravaged parts of New South Wales and Victoria are looking forward to being able to open to more customers when the states that reach their double vaccination targets.

Despite the impending exciting there is also fears of confrontations that will occur with unvaccinated customers who will ultimately be refused entry into their stores. 

Business owners in the hospitality industry are still trying to decide what is the best way to deal with unvaccinated customers and how they can get their employees to communicate with these customers will most likely be refused entry.

The NSW Government is currently working on the creation of vaccination passports which will be linked into the QR Code system when a person signs into a venue. This means their immunisation status will be displayed, therefore allowing the patron entry if they have been fully vaccinated.

The government is also working on the relevant legislation and public health order that will underpin everything and make it easier for businesses to have intense conversations with customers.

Business owners are planning to tell unvaccinated customers that “there is a law that will make the business and their management team liable if they are let onto the premises. Don’t blame the business, blame the government as the situation is out of the business owners’ controls”.

By refusing to serve people who haven’t taken the covid-19 vaccinated the business could tell the customer that they are simply following the rules the same way a bottle shop is unable to legally severe a customer who is under the 18 of age.

The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 1300 1 VAULT (1300 182 858)

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Post Author: Craig Dangar

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