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‘Inexplicable and unacceptable’: Melbourne accounting firms face reopening delays

Business

Accountants and bookkeepers in metropolitan Melbourne will have to wait a further two weeks to reopen their practices as the state government slowly eases restrictions.

By Jotham Lian 12 minute read

Victorian Premier Daniel Andrews is now facing pressure from the federal government and business groups to hasten the reopening of businesses after a number of restrictions were lifted on Sunday.

The 5-kilometre movement limit has now been extended to 25 kilometres, outdoor gatherings of up to 10 people will be allowed, and time limits on exercise and socialising have now been lifted.

While hairdressers can now reopen, and real estate auctions can resume, other retail and office businesses, including accounting and bookkeeping firms, will have to remain closed.

Mr Andrews said the next easing of restrictions will be made from 2 November, where most businesses will be able to reopen under the revised third step of Victoria’s roadmap for reopening.

The timeline will be governed by the 14-day rolling case average, with the state needing to record fewer than five cases state-wide to move into the next step. Metropolitan Melbourne’s 14-day average is currently 7.2 while regional Victoria’s is now 0.5.

Mr Andrews said the 2 November date could be brought forward if the case average continues to fall rapidly.

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“If we continue to track well on the most important indicators — case averages, mystery cases, test numbers and the number of days people wait before they get tested — we may be in a position to move sooner,” Mr Andrews said.

“My commitment to Melburnians: We’ll review this data each and every day this week and when we get to next weekend, if we can move any earlier and do it safely, we will.”

However, a joint statement from Prime Minister Scott Morrison, Treasurer Josh Frydenberg and Health Minister Greg Hunt said each further day of business restrictions could cost Victorians thousands of jobs and increase mental health issues.

“Every day Victoria remains under restrictions to get the second wave in Victoria under control comes at a heavy cost,” said the joint statement.

“Throughout the lockdown, more than 1,000 jobs have been lost, on average, every day.

“There has also been a 31 per cent increase in mental health services being accessed under Medicare for the same four-week period up to 11 October in Victoria compared with last year, while it has been only an 8 per cent increase in NSW and 7 per cent nationally.”

Business Council of Australia chief executive Jennifer Westacott has also lashed out at the decision to keep businesses waiting, despite the three-day rolling average now below two cases per day.

“This is an inexplicable and unacceptable delay for Victorians and small businesses who are hanging on by a day, not a week,” Ms Westacott said.

“Adopting a wait-and-see approach to easing restrictions is not an answer for people who face a bleak Christmas and businesses that are trying to get back up and running.

“For businesses, it is now a day-to-day proposition, not a week-to-week one, whether they remain viable or close their doors forever.”

Council of Small Business Organisation Australia chief executive Peter Strong said the state government had failed to present businesses with a recovery plan.

“The Premier and other decision-makers obviously have no experience with business,” Mr Strong said.

“They seem to think that a business owner will just turn the key to their business and things will start as they did before while magically being COVID safe.

“The lack of focus on jobs and the economy shows the lack of awareness of how communities and an economy works. The lack of consultation with the business community shows an arrogance and hubris that will create damage, not create solutions.”

CPA Australia business and investment policy manager Gavan Ord has urged the state government to consult with the small-business sector and consider further supports in light of the further delays.

“Many other small businesses have been left in limbo and still do not have a firm date for reopening. Reopening is not simply a case of flinging open the business’s doors, and requires time to prepare,” Mr Ord said.

“We appreciate that the state government is under enormous pressure to get this right; however, that does not explain its failure to fully consult with the small-business community.”

Jotham Lian

Jotham Lian

AUTHOR

Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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