'Crappiest system': $700m in business grants yet to be paid in NSW
By Matt Wade
August 18, 2021 — 5.00am
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A joint federal-state support package meant to assist businesses hit by Sydney's lockdown continues to be plagued by confusion and slow distribution of grants more than a month after being unveiled.
Service NSW says 254,000 business applications have so far been lodged under the program but more than 62,000 of those, worth almost $700 million, are still being processed.
The quiet streets of Sydney during the lockdown which has had a major impact on business. Credit:Wolter Peeters
Tom Clout, who owns a small building firm in Sydney, says he applied for a JobSaver grant more than two weeks ago but was informed by Service NSW on Monday it will likely be another two weeks before he receives any payment.
"They told me they have got a lot to process," he said.
Mr Clout says his firm's revenue has fallen by about 90 per cent since the lockdown came into force.
A Service NSW spokesperson said the unpaid grants "include new applicants, or applications that require further information to be able to proceed".
Mandy Foley, who owns a recruitment firm for the hospitality industry, says the system is confusing. She received a payment on Monday, almost a month after applying, but says it came with insufficient explanation.
"The length of time to try and get any money, and the lack of information when it comes, is very frustrating," she said. "I'm still completely in the dark about what I'm going to get."
Ms Foley has made multiple phone calls totalling about eight hours following up her applications. She has spent "sleepless nights" worrying about how her business would survive while waiting for government support.
"It is the crappiest system I have ever seen – if we were running a business like this we'd be broke," she said.
"I don't know what state NSW is going to be in by the end of this, but I doubt it is going to be pretty."
David Borger, executive director of lobby group Business Western Sydney, said support was flowing much more slowly compared with last year's federal JobKeeper scheme.
"We're still hearing from members that the Service NSW process is too time-consuming and complicated," he said.
"We'd urge the government to throw everything at this … they just need to get the cash out the door at the moment."
The business support scheme, which is administered by Service NSW, was first announced on July 13 and expanded a fortnight later.
The complaints about the distribution of assistance come as lockdowns take a growing economic toll. AMP capital chief economist, Shane Oliver, estimates the restrictions will have cost the NSW economy at least $9 billion by the end of this month.
ANZ debit and credit card use figures showed spending in Sydney during the week to August 15 was 27 per cent lower than before the lockdown and at its worst level since the onset of the pandemic last year.
The spokesperson for Service NSW said $1.4 billion in emergency business grants have so far been approved.
"Service NSW is working seven days a week to assess applications, clear the backlog and ensure eligible businesses receive funding as quickly as possible," the spokesperson said.
An additional 350 staff have been hired by Service NSW to answer customer inquiries.
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Matt Wade is a senior economics writer at The Sydney Morning Herald.Connect via Twitter or email.