Business NSW Discussion and

Recommendations in response to
NSW Victorian Border Closure

Report compiled by

Andrew Cottrill
Regional Manager – Riverina Murray
Business NSW
Ph 0439 389 486
Andrew.cottrill@businessnsw.com

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 1. Executive Summary
The Albury Wodonga functional economic zone has a combined population of 136,000, with an
annual Gross Regional Product at $7.2Bn.

Business NSW in collaboration with Local Government authorities, regional business and industry
groups has undertaken an analysis of the situation including a survey of more than 400 affected
businesses. The results indicate an immediate crisis for businesses on the NSW side of the border
requiring urgent action to resolve impractical regulations, and to stabilise jobs and the regional
economy. The recommendations contained in this submission align closely with those made by other
regional business, local government and industry stakeholders.

The NSW Government funded Regional Economic Development strategy 2018-2022 recognises the
Albury Wodonga region as a cross border functional economic zone, with necessary and unbreakable
interdependencies. More than 30% of Albury residents work in a different LGA. The six LGAs
(Albury, Wodonga, Greater Hume, Federation, Towong and Indigo) comprise the functional
economic zone with a total combined employed (working) population of 58,000, with 33,000 NSW
based and 25,500 Victorian based. While this report covers the Albury Wodonga functional
economic zone, the implications of the border shut down are apparent across the entire state
border, and the recommendations should as such be universal.

The recent tightening of border restrictions had an immediate and dramatic impact on the economy
and capacity for the border community to function. Severe constriction of the defined cross border
community as well as tighter restrictions on reasons for travel have denied a large proportion of the
region’s workforce from their businesses or place of employment.

Aspects of the new rules are more stringent than those imposed on residents of Melbourne hot-
spots, under which workers are still allowed to attend their workplaces if they are unable to work
remotely.

The NSW Victorian border community is one of the most impacted business communities in
Australia, despite having no active Covid-19 transmissions or active cases at present.

Based on ABS data it is estimated that around 15,000 workers cross the border every day to work.
Approximately 3,000 of these live or work outside of the constricted border bubble, and as such
cannot attend the place of work. This equates to 5% of the regional workforce who cannot work,
severely impacting the capacity of businesses, the region’s economy, and the mental health of its
workers.

Recommendation 1

Create a Cross Border Continuity of Employment permit available to residents of the original cross
border postcode bubble (see Fig 1.) Approved permit holders would be permitted to enter the NSW
cross border bubble only for the purposes of employment, and only where the employer has a
registered Covid-Safe plan in place. The same permit would allow NSW residents to work within the
original postcode based cross border bubble only where doing so for employment purposes.

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The critical worker permit system allows workers in these defined roles to travel beyond the defined
bubble to work, however they must self-isolate on return to NSW making this an impractical
proposition. Wangaratta Hospital in Victoria has 80 employees and medical staff who qualify as
critical workers, but due to the border travel restrictions are unable to perform their normal roles or
attend NSW based clinics and hospitals without self-isolating for 14 days.

Recommendation 2

The critical worker permit should be modified to ensure workers, who by nature of their roles,
perform critical services in the adjacent state. These workers must be allowed to perform this work
under a strict COVID safety plan and return to their home state without the need to self-isolate.
Again, this recommendation is consistent with other regulations across the country including NSW
hot-spots where workers are permitted to perform critical roles with appropriate safety and hygiene
measures in place.

With the regional economy split in two, NSW based businesses have none of their Victorian based
customers. Travel recommendations also restrict travel to the border from NSW, meaning business
revenues have declined in the order of 30-40%, with 58% of businesses having to reduced hours or
staff as a result of the border closure. Cashflow has become a critical issue for many businesses as
the recent changes were implemented without prior warning, leaving businesses with high stock
levels and cancellation of future work. Accommodation providers have been particularly hit, as no
travel markets are open to them at present.

Recommendation 3

Create a border closure economic impact grant program, designed to support and sustain impacted
businesses. Business owners in eligible border postcodes would be eligible for grants of up to
$10,000 to assist with cashflow and recovery efforts. Businesses would be required to demonstrate
revenue losses against a corresponding period to meet a pre-determined threshold level. This
scheme could be administered in a similar way to the bushfire grant scheme. Given the requirement
to demonstrate sound and sustainable business revenues aside from the impacts of the border
closure, this model would ensure funds are used to support viable businesses.

Recommendation 4

Establish a fund to compensate accommodation businesses for cancellations arising from the border
closure. Designed in a similar way to the Victorian Government Regional Tourism Accommodation
Support Program. Under a similar the program NSW accommodation businesses would be
compensated on a per night basis for cancellations arising during the initial and subsequent stages of
the border closure. The fund would be limited to an arbitrary limit of two weeks accommodation.

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Whilst these restrictions are severely hampering the regional economy and population, we are still
seeing examples of Melbourne hot spot travellers coming into the Wodonga and border region. No
border control permit system can prevent these travellers from spreading infection to the regional
Victorian population, thus potentially exposing the NSW population as infected persons with a
permit can enter NSW.

Recommendation 5

That the NSW premier urgently call on the Victorian Premier to implement and police more stringent
travel restrictions on anybody coming from a known area of infection or hot spot in Victoria from
travelling into a border region.

Recommendation 6

Implement QR code reading technology at border checkpoints to improve data capture and
compliance. The QR codes would track border movements and ensure authorities are able to better
monitor and check permits at border crossings.

Business NSW understands the urgency required to tackle the COVID-19 crisis and local businesses
have been cooperative in complying with regulations. Unfortunately the recent restrictions were
instituted with no consultation or warning. The unintended consequences of those changes have
crippled the local economy in way a that would have been immediately foreseeable for local
industry had consultation take place.

Recommendation 7

Consult with local industry leaders prior to future changes to border regulations.

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 2. Introduction
The Albury Wodonga functional economic zone has a combined population of 136,000, with an
annual Gross Regional Product at $7.2Bn.

The NSW Government funded Regional Economic Development strategy 2018-2022 recognises the
Albury Wodonga region as a cross border functional economic zone, with necessary and unbreakable
interdependencies. The region shares a common regional health system, sporting facilities,
economic development and tourism strategy, and complimentary retail, service and entertainment
precincts.

The border region is heavily characterised by significant movement between Local Government
Areas (LGAs), with more than 30% of Albury residents working in a different LGA. The six LGAs
(Albury, Wodonga, Greater Hume, Federation, Towong and Indigo) comprise the functional
economic zone with a total combined employed (working) population of 58,000 (33,000 NSW and
25,500 VIC). The initial closure of the NSW Victorian border as a means of protecting the NSW
community from the spread of Covid-19 created significant issues for the cross border community
and the regional economy. Despite these setbacks the region’s business and the broader community
cooperated and adjusted to the new permit system.

The ‘two towns-one community’ ethos spans the length of the Murray River border with Victoria.
This border is the most commercially active border in Australia, with communities spanning either
side of the river sharing services, employment, opportunity and economic prosperity. Splitting these
communities is impractical and deprives both sides with the basic necessities of life.

The most recent constriction of both the permitted reasons to cross the border and the shrinking of
the previous 50km postcode bubble has dealt a major blow to the region’s economy and business
community. The changes caught the community by surprise given the high level of adherence to the
rules laid out under the initial border closure and to date, no active cases in the NE border region.

The impacts of the July 22nd zone modifications and permit system are crippling the regional
economy, preventing thousands of people from going to work and cruelling revenues for of the vast
majority of businesses. Aspects of the new rules are more stringent than those imposed on
residents of Melbourne hot-spots, under which workers are still allowed to attend their workplaces
if they are unable to work remotely.

The NSW Victorian border community is the most impacted business community in Australia,
despite having no active Covid-19 transmissions or active cases at present.

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Fig. 1. Original Cross Border Community zone (red shaded area)

Fig. 2. July 22 Constricted Cross Border Community zone (blue shaded area)

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 3. Impact of the recent border permit changes
Of the approximate 15,000 workers who cross the border every day to work;

• approximately 6,000 cross the border from NSW to work in Victoria, and
• around 9,000 cross the border from Victoria to work in NSW;

of these;

• Of the 6,000 NSW residents who cross the border to work in Victoria, approximately 1,000
travel beyond the new border bubble in Victoria, which would require them to isolate for 14
days on return – they can no longer work
• Of the 9,000 workers coming from Victoria to work in NSW, approximately 1,200 reside
outside of the border bubble zone – they can no longer work
• A further 300 Victorian workers crossing the border are required to travel beyond the border
bubble in NSW – they can no longer work
• In addition, hundreds of trade, health and construction workers service communities beyond
the border bubble on both sides. These workers can only work in their own state or within
the bubble, halving accessibility to worksites
• All up, approximately3,000 workers or 5% of the region’s workforce are effectively unable
to go to work due to the latest border restrictions

Recommendation 1

4. Sales heavily impacted

For those businesses still able to operate, customers and sales have declined significantly. Businesses
on both sides of the border are reporting revenue declines of 30-50% since the recent constriction.
The current situation is unsustainable, resulting in closures and local businesses reporting cash
reserves are rapidly running out.

Tourism and hospitality operators are severely impacted, with the door effectively slammed shut on
visitation from both the NSW and Victorian populations. Operators reported mass cancellations as
the initial border closure was implemented, and further comments from the Premier warning NSW
populations not to visit the border region has effectively ceased all accommodation and tourism
trade.

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 5. Economic impact data
Early reports from businesses in Albury show revenues have declined in the order of 30-50% in the
first few days. Traffic data assessments taken this week confirm northbound traffic has reduced 33%,
consistent with economic indicators.

According to the initial 312 responses of the Business NSW economic impact survey, the average
weekly income loss by respondents is in excess of $7,500.

Border restrictions have impacted staff movements and numbers with respondents reporting an
average of 2.6 employees unable to come to work or perform their normal roles and companies

forced to reduce staff by 1.2 FTEs.

Whilst to date only a small percentage of respondents have closed their business as a result of the
border closure, less than half (42%) are open and operating as normal.

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 6. The permit system as it currently stands
Victorian residents and workers living within the border bubble

The new system only allows cross border residents to enter or return to NSW if they reside within
the newly defined (approximately 2.5km) border bubble, and only then if for one of 3 select
purposes.

• Work
• Education
• Health care

These permits allow the holder to stay within the defined interstate border bubble zone for the
above purposes only.

Victorian residents living outside of the defined 2.5km border bubble

These residents and workers are not allowed to cross the NSW border for anything other than
emergency purposes or critical roles.

Victorian critical workers

There are permit exemptions for critical workers, however critical worker permits only allow the
person to be on the NSW side of the bubble for work purposes, requiring them self-isolate or to
travel back to Victoria if not engaged in the critical service. Victorian critical workers may travel
beyond the NSW border bubble only when performing critical work and must self-isolate or leave
NSW immediately upon completion of the critical work.

Critical workers include

• Commonwealth defence and security services

• maintenance and repair of critical infrastructure
• medical, hospital, dental or veterinary care
• COVID-19 environmental cleaning on a commercial basis that is not available locally
• mining, agriculture, energy or manufacturing
• construction to prevent harm, damage, infrastructure or service failure or where
there is no NSW resident with the relevant expertise
• movement of freight on a commercial basis
• movement of persons on a commercial basis

NSW based Critical workers

The permit rules are particularly challenging for NSW based business owners and employees in
critical roles who are regularly required to work outside of the border bubble in Victoria, as they are
required to self-isolate for 14 days on their return. Users of this permit category are reporting wide
ranging confusion and frustration related to permitted activities, travel distance restrictions and
isolation requirements. In effect this policy requires a critical worker such as a doctor, living in Albury
who travels to a Victorian hospital outside of the tight border bubble to self-isolate for 14 days when
returning home unless performing the critical role in NSW. These workers are not allowed to leave
their home for any other purpose for the 2 week period following the bubble incursion.

This situation is both impractical and unworkable from an individual and business perspective, a
situation that must be reviewed urgently.

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 7. Lived examples of the issues and impracticality of the existing rules

• We have a small florist shop in Corowa. We live in Rutherglen. We can’t get a permit to cross
the border. We decided that I should stay in Corowa to keep our business going as it has
been very busy. I’ve had to leave my kids and husband in Rutherglen to do this. I’m not sure
how long I’ll last away from my kids.

• Alex, an Albury based restaurant owner is unable to get his head chef to work as he lives
outside of the new border bubble in Victoria. Alex has seen a sharp decline in trade since the
July 22 border bubble constriction, serving just 4 meals rather than more than 80 under
normal circumstances. He has hired another chef, who may not be needed for long as this
business is now unsustainable.

• A business owner living in Walla Walla NSW, 35km away from Albury has taken up
temporary residence in a hotel so he can continue operating his business.

• Jenny operates a riverside accommodation business in Moama NSW. Cancellations since the
border closure was announced have totalled $57,491, consisting of resort -$39,715, retreat -
$6,385, and houseboats $11,391

• Our business is in heavy vehicle repairs & maintenance. We service a large number of bus
operators. The timing of the second closure was in that way good as school had just
resumed. The phones have stopped ringing this week. Our staff are under a great deal of
stress to get to work (3 of 4 FTE from VIC in the border zone). The overnight shrinking of the
border zone had the biggest impact on our business, we should have been allowed to travel
within the 50km radius.

• Here at Cadell on the Murray, due to the New South Wales and Victorian border closing our
motel has 0% Occupancy. Majority of our guests come from Victoria and due to the border
closing they are unable to do this. Any guests who usually come from New South Wales are
no longer coming to stay as most of the tourist attractions are across the border such as
shops, paddle steamers, movie theatre etc. We are unable to use our function room as no
guests can cross the border resulting in many cancellations. Due to massive wait times to
cross the border locals are not able to support other small businesses as no one wants to
cross the border to stimulate the economy.

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 8. Recommendations

In consultation with local business groups, local government management, as well as health
authorities, Business NSW proposes the following.

Recommendation 1

Create a Cross Border Continuity of Employment permit available to residents of the original cross
border postcode bubble (see Fig 1.) Approved permit holders would be permitted to enter the NSW
cross border bubble only for the purposes of employment, and only where the employer has a
registered Covid-Safe plan in place. The same permit would allow NSW residents to work within the
original postcode based cross border bubble only where doing so for employment purposes.

The original postcode bubble data exists in the Service NSW database, and as such this permit type
would be a practical and easily deployed solution. This solution would allow businesses to get their
workers back in place to prevent the estimated additional 5% unemployment hit the region is
currently suffering. This proposal would be consistent with rules in place in other lockdown zones
across Australia, where employers are permitted to attend the workplace where they are unable to
work remotely.

Recommendation 2

The critical worker permit should be modified to ensure workers, who by nature of their roles,
perform critical services in the adjacent state. These workers must be allowed to perform this work
under a strict COVID safety plan and return to their home state without the need to self-isolate.
Again, this recommendation is consistent with other regulations across the country including NSW
hot-spots where workers are permitted to perform critical roles with appropriate safety and hygiene
measures in place.

Recommendation 3

Create a Border closure economic impact grant program, designed to support and sustain impacted
businesses. Business owners in eligible border postcodes would be eligible for grants of up to
$10,000 to assist with cashflow and recovery efforts. Businesses would be required to demonstrate
revenue losses against a corresponding period to meet a pre-determined threshold level. This
scheme could be administered in a similar way to the bushfire grant scheme. Given the requirement
to demonstrate sound and sustainable business revenues aside from the impacts of the border
closure, this model would ensure funds are used to support viable businesses.

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Recommendation 4

Establish a fund to compensate accommodation businesses for cancellations arising from the border
closure. Designed in a similar way to the Victorian Government Regional Tourism Accommodation
Support Program. Under a similar the program NSW accommodation businesses would be
compensated on a per night basis for cancellations arising during the initial and subsequent stages of
the border closure. The fund would be limited to an arbitrary limit of two weeks accommodation.

Whilst these restrictions are severely hampering the regional economy and population, we are still
seeing examples of Melbourne hot spot travellers coming into the Wodonga and border region. No
border control permit system can prevent these travellers from spreading infection to the regional
Victorian population, thus potentially exposing the NSW population as infected persons with a
permit can enter NSW.

Recommendation 5

That the NSW premier urgently call on the Victorian Premier to implement and police more stringent
travel restrictions on anybody coming from a known area of infection or hot spot in Victoria from
travelling into a border region.

Recommendation 6

Implement QR code reading technology at border checkpoints to improve data capture and
compliance. The QR codes would track border movements and ensure authorities are able to better
monitor and check permits at border crossings.

Business NSW understands the urgency required to tackle the COVID-19 crisis and local businesses
have been cooperative in complying with regulations. Unfortunately the recent restrictions were
instituted with no consultation or warning. The unintended consequences of those changes have
crippled the local economy in way a that would have been immediately foreseeable for local
industry had consultation take place.

Recommendation 7

Consult with local industry leaders prior to future changes to border regulations.

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9. Conclusion

The unintended consequences this regional community is suffering as a result of being the front line
of the NSW border protections are beyond what could reasonably be expected. These
recommendations provide an opportunity to implement practical changes that would relieve much
of the economic and social impacts being experienced within this regional cross border community.

Business NSW is continuing to collect survey data from affected businesses across the broader
border region, with a view to clearly quantifying the business and community impacts of the border
closure. This information will be provided once received and analysed. The full list of verbatim
comments received to date in the survey are attached separately to provide further clarity on the
extent of the border restrictions.

Report compiled by

Andrew Cottrill
Regional Manager – Riverina Murray
Business NSW
Ph 0439 389 486
Andrew.cottrill@businessnsw.com

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