Many shopkeepers and employees risk losing their livelihoods come September 28, when rules surrounding JobKeeper change and payments are reduced.
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Rural Financial Counselling Service chief executive David Galloway said it could spell the end for many shops, according to the government's latest business confidence surveys.
"About 15 per cent of business that are currently on JobKeeper are expecting to close after JobKeeper runs out, and there's another 15 per cent that will reduce their staff numbers off the back of it," Mr Galloway said.
"In our region, about 50 per cent of businesses have seen a reduction in revenue and 85 per cent of them have seen their costs either stay the same or increase, so almost every business has been impacted by COVID."
Mr Galloway said their counselling service was the busiest it has been in its 25-year history, with record numbers of struggling shopkeepers and farmers coming to them for help.
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Ryneharts Fashions owner Jackie Gash said her 60-year-old shop would need to "drastically" reinvent itself to survive, and she plans to relaunch it with a new name and a new target demographic.
"There's the perception it's an older lady shop, and those older ladies are either in nursing homes or gone to God so I've got to get the new lot through the door which is a bit younger," Ms Gash said.
"We've got to make some drastic changes to keep swimming."
Freckles Flowers owner Katrina Dosser said her shop would probably not be eligible for JobKeeper under the new rules, but she said was determined to keep her two staff in a job either way.
Ms Dosser previously had to go deeply out of pocket to keep her employees on the books, but said business has started to recover since then.
"To be honest I just feel privileged I got [JobKeeper] in the first place, and I'm thankful for what I did get," she said.
"It's all part of running a business. It'll all work out in the end."
NSW Business regional manager Andrew Cottrill said shopkeepers were "very anxious" about the upcoming JobKeeper changes, but said the economy was at least showing some signs of recovery.
However, Mr Cottrill said not all industries had bounced back and the government needed to start offering targeted support in order for them to survive.
"We're mindful that government has to take a balanced approach to try and ease people out of that support package and back to work," Mr Cottrill said.
"But there is certainly some concern that some businesses won't recover as fast as others, particularly in the tourism, accommodation, and hospitality sectors."