Launceston is home to the largest number of businesses in Tasmania who've had applications for the federal government's JobKeeper payment processed, Australian Taxation Office data has revealed.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Released on Thursday, the data shows 1577 business in Launceston have benefited from the payment.
Hobart ranked second in the state, with 1289 businesses benefiting and Devonport was third with 687.
The data came as no surprise to the team from the Tailrace Centre at Riverside. The business estimates it's lost about $750,000 because of restrictions which forced the closure of the Kids Paradise centre, Jude's Cafe and function facilities.
IN OTHER NEWS:
Before JobKeeper was introduced, the Tailrace Centre's Sharon and Tim O'Neill said most of the businesses workforce was "let go" and the 10 staff who stayed on took pay cuts of up to 50 per cent.
"Before JobKeeper came in we had a whole heap of people in the [Tailrace Community Church] congregation who actually shared their income to keep staff employed," Mrs O'Neill advised.
"They've continued to do that because they understand some of the life stories of some of the employees and they haven't wanted hardship to happen to the employees. It's been really beautiful."
Now 19 Tailrace Centre staff are benefiting from JobKeeper and for one staff member, Mrs O'Neill said it's stopped a potential return to a life of crime.
She said the staff member started working at the Tailrace Centre last year, after they were ordered to undertake community service and spared jail.
"We provided employment and training, so that person's entire world has changed this past 12 months," Mrs O'Neill said.
"They're no longer addicted, they've totally broken the cycle. They could have fallen back into the cycle if they lost of their job."
The staff member now worked as a supervisor, Mr O'Neill said.
"If that person had of gone to prison...it costs $34,000 for three months in the Tasmanian prison system, and if they went to prison for a full year that'd be $136,000 so that's a huge amount we've actually saved the state government in that one case," he said. "Then there's the 47 per cent chance of re-offending in Tasmania and when you re-offend you're likely to become dependent on social security long-term so literally you've saved hundreds of thousands of dollars."
Top 10 Tasmanian JobKeeper postcodes
- 7250 - Launceston includes Newstead, Norwood, Summerhill, Riverside, Ravenswood, Prospect, St Leonards, Waverley (1577 business had JobKeeper applications processed)
- 7000 - Hobart (1289)
- 7310 - Devonport (687)
- 7018 - Bellerive, Mornington, Warrane (495)
- 7005 - Sandy Bay (461)
- 7009 - Derwent Park, Moonah, Lutana (440)
- 7004 - Battery Point, South Hobart (397)
- 7320 - Burnie (394)
- 7050 - Kingston (364)
- 7010 - Rosetta, Montrose, Glenorchy (351)
Few surprised at JobKeeper stats
Hobart trails Launceston in the number of JobSeeker payment applications processed because the state's capital relies more heavily on the public sector workforce.
That's the view of Launceston Chamber of Commerce President Andrew Pitt and Tasmanian Liberal Senator Wendy Askew, who say private enterprise plays a bigger role in Launceston's economy.
Mr Pitt said Launceston was "primarily a private sector economy that relies heavily on small and medium businesses".
"Hobart may well have fewer business on JobKeeper because steady public sector incomes have insulated businesses there during the first few months of the crisis," he said.
"This does highlight the importance of spending locally, particularly as we recover from the crisis. Local Launceston businesses will be relying completely on community support as the stimulus is wound back."
Senator Askew said Launceston was an entrepreneurial city and that claim was backed up by a 2017 report.
"This report was developed by demographer Bernard Salt and showed that 83 per cent of Launceston's workforce was employed in the private sector, compared with 76 per cent in Hobart, which confirms the economic and cultural differences between Launceston and Hobart," Senator Askew explained.
Sign up to one of our many newsletters: