Business SA warns against early JobKeeper cut-off as PM won’t rule out reducing payment
SA’s business community says it is “alarmed” at the prospect the $1500-a-fortnight JobKeeper payment could be reduced or even phased out before its six-month cut-off date.
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South Australia’s business community is “alarmed” at prospect the Federal Government’s $1500 JobKeeper payment could be reduced or phased out before its six-month cut off date.
More than 43,000 SA businesses have applied for the temporary payment to help pay employees’ wages during the coronavirus shutdown.
The federal Treasury is conducting a review of the $130 billion JobKeeper package by June, which could see the payments revised if Australia’s success in flattening the COVID-19 curve continues.
Prime Minister Scott Morrison did not rule out changes to the payment when asked about it on Monday. But he said speculation JobKeeper could be scaled back or cut off before September 27 was “premature”.
“We are six weeks in to a six-month program,” he said.
“The impact of the virus – how it will impact on Australia in the months ahead with a reopening economy – is very much a work in progress.”
Business SA chief executive Martin Haese warned against cutting off the payment early or reducing it, saying: “JobKeeper is the modicum of confidence that is holding this country together at the moment, economically.
“JobKeeper is doing precisely what the federal government intended it to, to ensure as many businesses as possible survive the current turbulence and actually have a business at the other end.
“We would be concerned, if not alarmed if it was to be wound back.”
SA Council of Social Service chief executive Ross Womersley said the economy may not recover for a long time and the government should be prepared to extend the JobKeeper and JobSeeker payments, not cut them off early.
“We need the Federal Government and we need governments at all levels to be prepared to embrace debt for a period of time into the future as a means of helping keep our population well positioned to take up employment when the employment opportunities return,” he said.
Treasury modelling released last week predicted SA would lose 87,100 jobs in the first half of 2020 due to coronavirus.
It also estimated 55,000 SA jobs will be recovered through the federal and state governments’ three-step plan to reopen the economy, which means about 32,100 South Australians are not expected to regain work in the coming months.
Ready to reboot: 55,000 SA workers
The easing of stage 1 COVID-19 restrictions will inject $178 million into the South Australian economy with 16,500 employees poised to return to work, new economic modelling shows.
Treasurer Josh Frydenberg, was on Monday due to hand down a surplus Budget.
Instead, he will update the Federal Parliament on the economic blow of the coronavirus pandemic.
Treasury figures reveal 55,000 South Australians, or three in five workers, stood down during the first half of 2020 are forecast to be back in jobs once all three stages of the restrictions are lifted come July.
The state on Monday enjoyed the revival of regional travel, outdoor dining at cafes and restaurants, camping, property auctions and face-to-face learning.
However if South Australians ignore health advice, prompting bans to be returned, it would cost the state’s economy $200 million a week.
“Australians know there is no money tree,” Mr Frydenberg will tell Parliament.
“What we borrow today, we must pay back in the future.”
Mr Frydenberg says rebuilding consumer and business confidence will be essential because the nation’s finances can only be sustained by a “strong and growing market-led economy”.
“With $320 billion, or 16.4 per cent of GDP in financial support, our focus is getting the country through the crisis and positioning the economy to recover on the other side,” he said.
– Jade Gailberger