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Health

Will Hunter businesses benefit from NSW's Omicron support package?

Phi Vo the owner of Distribution Cafe does not think his business will qualify for support.  (ABC News: Ben Millington)

A $1 billion state government support package to help small business through the Omicron wave has been cautiously welcomed by business leaders in the Hunter, but they acknowledge it will not save everyone.

To qualify for payroll support of up to $5,000 a week, business owners have to prove a 40 per cent decline in turnover during January or the first two weeks of February, compared to either of the previous two years.

Distribution Cafe in Mayfield West was one of those that would miss out on getting support.

"We're not even close," Phi Vo said, from behind his coffee machine at the cafe.

"It's great that the government has announced this package, but a lot of small business operators will miss out. What happens to those businesses that are [down] 20 per cent or even 35 per cent?"

Turnover at Mr Vo's cafe has dropped by more than 20 per cent, which he said was significant for any business operating on slim profit margins.

"Because we're only a small cafe operator, our margins are quite small; even 10 per cent is massive for us.

"But what do we do? We just keep on going."

Business chamber says more needed

Business Hunter chief executive Bob Hawes said he would have "loved to have seen more" in the package because so many local businesses had their "backs against the wall".

"We note that the state government is standing up to at least do what they have done," Mr Hawes said.

"We acknowledge that there's no support at the moment from the feds and every bit does help. 

Many businesses have faced a multitude of problems since the Omicron outbreak in December, including significant staff absenteeism, supply issues and declines in trade.

Mr Hawes said cash flow for businesses was the main issue and support was needed to help them "get to the other side", when consumers were expected to begin spending the savings accumulated during the pandemic.

Sarah English from the Scone Chamber of Commerce encouraged businesses not to "self-assess" as to whether they qualified for the latest package.

"From our experience of the last few packages, we've found that if you go to Service NSW and connect with a business concierge, that's really, really beneficial," Ms English said.

"Even if you didn't think that you were eligible, or it was going to be too hard, often they can actually get it across the line."

Alison Marshall the owner of gym CoreFit Newcastle at Steel River Industrial Estate in Mayfield Wet. (Ben Millington (ABC News))

Labor MP for Newcastle Tim Crakanthorp described the government's new support package as "half-baked" because it did not open until mid-February and excluded turnover losses during December.

"[The Hunter] had the first big outbreak and that hit us in December," he said.

Gym feeling the pressure

Alison Marshall, owner of the small Mayfield West gym CoreFit, said her cash flow had taken a significant hit from having to cover staff absenteeism and losing membership payments. 

"You're constantly juggling numbers and trying to be smart with your revenue, but it creates a lot of frustration because over the last two years as a business owner you've had to constantly juggle and be resilient," Ms Marshall said.

"Resilience is important in business, but there's only so much resilience after you've been hit so many times, and when it's financial the hit is even more stressful."

Ms Marshall said she was starting to see things improve in recent days but was disappointed her business would not qualify for the latest support package.

"It's a positive in that we weren't down more than 40 per cent, but a little bit more help sometimes would be great.

I've had COVID, can I get it again?
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