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Honest question, Whats happening with the owners of those bars and restaurants? are they expected to continue to pay their employees, rents and mortgagees? If

by yaur 5y ago

Honest question, Whats happening with the owners of those bars and restaurants? are they expected to continue to pay their employees, rents and mortgagees? If so how are they remaining solvent and if not how are their counterparties expected to remain solvent?

hug 5y ago
There are various federal business assistance programs to help them with fixed costs. They're not expected to pay employees (who are largely 'casual', on an hourly basis only). Those unpaid employees are able to receive government payment: In Melbourne, Victoria, this is $600/week if you have lost more than 20 hours of employment for that week. Unsure about Sydney, NSW, but I do know there are benefits available.
- yaur 5y ago
  On a macro level, doesn't this mean that the Australian government is printing money until either COVID goes away or banks stop accepting AUD?
  - CTDOCodebases 5y ago
    No. The current government roadmap is to remove lockdown restrictions at various vaccination levels. The current vaccination rate is very low due to a bungled vaccine rollout. This is changing though. The government messaging now is “get vaccinated so we can lift these restrictions”.
CTDOCodebases 5y ago
There is a pause on evictions and financial support from government. Banks are motivated to allow mortgage payments to be deferred (high property prices and more income via interest payments are good for business). The pause on evictions force landlords to enter negotiate with tenants who need rent reductions in order to survive. If they don’t they risk losing months of rent and having no tenant in bad market. Most of the workforce in these industries are casual employees who are also covered by goverment assistance if their hours are reduced. Full time workers also get support if they are furloughed. I have friends who own these types of businesses. Spikes in case numbers result in booking cancellations/low patronage so the whole situation is perceived as an unfortunate catch-22 situation.

by yaur 5y ago

hug 5y ago

There are various federal business assistance programs to help them with fixed costs. They're not expected to pay employees (who are largely 'casual', on an hourly basis only). Those unpaid employees are able to receive government payment: In Melbourne, Victoria, this is $600/week if you have lost more than 20 hours of employment for that week. Unsure about Sydney, NSW, but I do know there are benefits available.

yaur 5y ago
On a macro level, doesn't this mean that the Australian government is printing money until either COVID goes away or banks stop accepting AUD?
- CTDOCodebases 5y ago
  No. The current government roadmap is to remove lockdown restrictions at various vaccination levels. The current vaccination rate is very low due to a bungled vaccine rollout. This is changing though. The government messaging now is “get vaccinated so we can lift these restrictions”.

CTDOCodebases 5y ago

There is a pause on evictions and financial support from government. Banks are motivated to allow mortgage payments to be deferred (high property prices and more income via interest payments are good for business). The pause on evictions force landlords to enter negotiate with tenants who need rent reductions in order to survive. If they don’t they risk losing months of rent and having no tenant in bad market. Most of the workforce in these industries are casual employees who are also covered by goverment assistance if their hours are reduced. Full time workers also get support if they are furloughed. I have friends who own these types of businesses. Spikes in case numbers result in booking cancellations/low patronage so the whole situation is perceived as an unfortunate catch-22 situation.