Updated: Mar 18, 2020
The General Manager of the Hair and Beauty Industry Association, Mark Rippon, has advised HBIA members that hairdressing and beauty salons stand to benefit from the government’s $17.6bn Coronavirus stimulus package, and says it will assist businesses across the hair and beauty sector.
Speaking after the government’s announcement, Mark said the package – which will give cash flow relief to small and medium businesses, and shore up their employees’ jobs – would help hair and beauty enterprises after a difficult summer marred by natural disasters across the country, and which are now being impacted by Coronavirus, which is curbing public movements and affecting businesses reliant on people-to-people contact.
“We certainly welcome the government’s stimulatory measures,” Mark said.
“Alongside direct payments to lower income households, we think this package delivers a cash injection where it’s needed most, and this boost to discretionary spending may generate increased foot traffic in the salons of our members as people use the opportunity to book a hair or beauty treatment,” he added.
Mark said the package included funding of $1.3bn (or up to $21,000 per apprentice) – paid in increments of $7,000 per quarter over the first three quarters of 2020 – and that this was a terrific incentive for HBIA members to retain their trainees, which would in turn benefit them well after the Coronavirus threat had passed.
“The government believes the jobs of 117,000 apprentices across Australia stand to be protected as a result of this announcement, and of course many of those are employed by our members, which is fantastic,” he said. “We’re glad to see the government supporting employment, and wage subsidies for trainees and apprentices in hair and beauty – backdated to 1 January 2020 – will ensure the next generation of hairdressers, barbers and beauticians remain in jobs,” Mark said.
Mark said changes to the instant asset write-off would also help hair and beauty salons continue to trade during an international crisis whose ramifications, and impact on businesses that are dependent on interaction between people like hair and beauty, are still only beginning to be fully felt.
“HBIA looks forward to working with the government to consolidate the delivery of its stimulus initiative, and looks forward to further assistance measures in the upcoming Budget,” Mark said.
Click here to download the cash flow for businesses fact sheet