Data has revealed 40 per cent of companies in the Wingecarribee Shire accessed JobKeeper in May.
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Analysis of Australian Bureau of Statistics and Treasury data by actuarial consultancy Taylor Fry shows 39.8 per cent of Southern Highlands businesses were accessing JobKeeper in May.
That level is 4.6 per cent above the national average and shows the pandemic has had an outsize impact on businesses in the region.
This was partly due to the exposure to rental, hiring and real estate industries in the area.
It was also due to comparatively low number of financial and insurance businesses, which have experienced relatively mild job losses.
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The data did not disclose which businesses applied for JobKeeper.
Neighbouring council areas including Wollondilly, Upper Lachlan Shire and Goulburn Mulwaree were comparatively better off.
However Shoalhaven was also hit hard, as was Wollongong, where more than 43 per cent of businesses are using the JobKeeper scheme.
JobKeeper allows companies that have experienced a 30 per cent fall in revenue in the COVID-19 downturn to claim a subsidy of $1,500 a fortnight to keep staff employed.
More than 90 per cent of companies claiming JobKeeper are small businesses.
The Council of Small Business Organisations Australia (COSBOA) said the analysis highlighted the need for local customers to spend with small businesses.
COSBOA chief executive Peter Strong said the Southern Highlands had been hit hard by the pandemic.
"Small businesses support local clubs and sports teams. They support schools and bring character to neighbourhoods," Mr Strong said.
"Whenever you are making a spending decision, think about these businesses and go local first.
"So whether it's for meal deliveries, shopping for groceries, getting some accounting work done or some maintenance on your home or place of work, consider how you can support your community and go local first."
Taylor Fry principal Alan Greenfield said the impact of the COVID-19 restrictions was widespread and varied between local government areas.
"Areas most impacted are tourist and residential areas," Mr Greenfield said.
"We expect our analysis to be useful in determining the impact of COVID-19 on an ongoing basis as we continue to update it."
The in-depth geographical analysis of JobKeeper payments across Australia is available at: https://taylorfry.com.au/articles/jobkeeper-reliance-may
COSBOA is running a six-month campaign supported by the federal government encouraging Australians to go local first and buy from small businesses whenever they can.
Information on the campaign and how to support small business is available at www.golocalfirst.com.au, or search the popular hashtag #golocalfirst on Instagram.