Retailers and small business owners effected by last month’s Martin Pl siege in Sydney’s CBD face smaller insurance payouts if the siege is deemed a terrorism event by the Federal Government.

Fairfax Media reports some Sydney traders whose businesses were effected by the event at the Sydney Lindt Cafe and the associated lock down of Sydney central on December 15 claim sales were down 70 per cent on the day of the siege.

Insurance firms are now awaiting on the decision by Federal Treasurer, Joe Hockey, to determine if the siege is declared an act of terrorism.

Businesses which have been making claims for disruption to their insurers are likely to receive smaller amounts of compensation if it is defined an act of terrorism as a government body will step in to curb insurers’ losses, according to Fairfax.

The Australian National Retailers Association (ANRA) forecast consumers would spend $8.3 billion the week of the siege as part of its weekly spending projections in the lead up to the Christmas.