THE decision for banks to extend the period customers can defer loan repayments has sparked fresh hope the federal government's JobKeeper scheme may be extended.
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The Australian Banking Association (ABA) announced on Wednesday it would extend the deferment of loan repayments to small businesses and households for an additional four months.
Wednesday's announcement comes after the ABA initiated the scheme at the beginning of the pandemic and it estimates there are over 800,000 loans that have been deferred, worth over $260 billion.
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Tamworth Business Chamber president Jye Segboer welcomed the move and said he hoped it would inspire the federal government to extend its JobKeeper scheme past September.
"It is a nice boost for homeowners and for small businesses," Mr Segboer told the Leader.
"It also shows we're not out of this yet and certainly the economy is going to take a long time to recover.
"I think the ABA has made the right move to ensure businesses remain in a cash-strong position coming out of COVID.
"We hope JobKeeper is extended at least for the tourism, hospitality and accommodation sectors because they are suffering the hardest."
Mr Segboer said the outbreak of cases in Victoria was enough of a reason to extend the scheme.
"We certainly want to see JobKeeper get extended for those industries because they were the first hit and are likely to take the longest to recover," he said.
"At the moment the potential to travel interstate looks like shrinking and it will be those industries who feel that the most.
"It's hard to tell if it will improve by September, but at the moment it looks unlikely and those industries will need assistance."
Mr Segboer said the deferment of loan repayments had been popular within the region.
"It has been popular, but we have been encouraging businesses to speak with their accountants for financial advisors to ensure that is the best move for them," he said.
"While it can be an attractive option up front, you want to ensure the life of the loan isn't affected detrimentally by deferring those repayments."
The ABA has advised those who can pay their repayments to continue to do so.
Billy Jupp
Billy is a Senior Livestock Journalist for the Queensland Country Life based in Toowoomba. He has worked for a variety of different ACM mastheads during the past five years including the Namoi Valley Independent, Northern Daily Leader and The Land.
Billy is a Senior Livestock Journalist for the Queensland Country Life based in Toowoomba. He has worked for a variety of different ACM mastheads during the past five years including the Namoi Valley Independent, Northern Daily Leader and The Land.
