Almost 23,000 SA businesses on JobKeeper 2.0, thousands come off payment as economy recovers

The number of businesses leaving JobKeeper is being hailed as a good sign, but the Parafield cluster’s economic fallout now looms.

More than 20,000 South Australian businesses are still receiving JobKeeper but thousands have recovered enough to come off the payment.

It’s been hailed as a good sign for SA’s economic recovery, but the business community warns the latest JobKeeper figures do not take into account the fallout from the Parafield cluster restrictions.

Business SA chief executive Martin Haese.

Nearly 61,000 SA businesses and more than 200,000 South Australians were relying on the $1500-a-fortnight wage subsidy under the first phase of the scheme, which ended on September 27.

Almost 38,000 SA businesses had recovered enough to come off the payment, but about 23,000 reapplied for JobKeeper 2.0 under the tighter turnover test. The new version of the scheme is supporting 66,300 workers at lower rates of $1200 or $750.

Business SA boss Martin Haese said: “The last two weeks of changing restrictions related to the Parafield cluster are not reflected in the current JobKeeper 2.0 numbers and should not disguise the need for ongoing support to SA businesses, particularly hospitality and service businesses, which rely on CBD office workers that are being advised to work from home.”

Treasurer Rob Lucas said the JobKeeper figures showed SA’s economy was recovering.

He said there had been high demand for the second round of SA’s $10,000 cash grants for small businesses, with $22m already paid in just three weeks.

The deadline has also been extended until February 28 for businesses to apply.