Experts warn more than 800 Aussie businesses could shut up shop in September when Government stimulus payments dry up.
According to the survey, several investment and credit-reporting firms have warned that “zombie companies” – those artificially propped up by temporary pandemic stimulus – could collapse over the next six months as stimulus measures are reduced.
“The people affected will not be the undead, but they will be those who were trying to cross the so-called ‘bridge to the other side’ only to find that they ran out of time.”“Economists aren’t predicting an enormous influx of insolvencies right away in September, but the 800 prediction is deceptive because many expect the worst to come in the months that follow,” he said.
“There will be a serious shock to the economy as people are once again forced to start paying the bills and stop receiving government incentives. But Rich Harvey, CEO and founder of Propertybuyer, said he expects 1400 insolvencies in September as many companies will struggle to “sustain their cost base without government support and low revenue”.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Public housing 'carnage' predicted in September as COVID-19 job losses combine with shortageWestern Australia could face a shortage of up to 30,000 public housing properties as it deals with the economic fallout of the coronavirus pandemic, social service providers warn.
Read more »
Bali eyes September re-opening for foreign touristsBali says foreign tourists will be allowed to return by September as the Indonesian holiday island scrambles to repair its crippled vacation sector - even as coronavirus cases mount.
Read more »
Still surface belies strong currents beneath by-election resultAustralian politics is incredibly volatile and there is no sign of that volatility abating - the towns and suburbs of Eden-Monaro proved it on Saturday | CroweDM
Read more »
Axing coronavirus payments in September would cost jobs: Chalmers | Sky News AustraliaShadow Treasurer Jim Chalmers has warned against quickly pulling back coronavirus support payments arguing it will cost Australian’s jobs and hurt the economy.\n\n“If the government’s original instinct was the right one and we think it was then you need to make sure you apply that quickly enough and broadly enough to make a difference in the labour market,” he said. \n\n“Don’t just snap it back in the last weekend of September … that would cruel the economy and cost jobs.”\n
Read more »
Huawei faces UK ban, with experts warning of Chinese spyingOn the back of tough US sanctions banning Huawei from using any American intellectual property, Britain's national cyber security centre recommends the Chinese company be totally banned, and its technology stripped from existing parts of the network.
Read more »
Soleimani killing by US drone 'unlawful', deems UN officialA UN investigator says the US has failed to provide sufficient evidence of an imminent attack against its interests to justify killing Iranian general Qassem Soleimani.
Read more »