Australia’s JobKeeper wage subsidy: Qantas, Tabcorp, Crown Resorts line up for help
Qantas, Tabcorp, Crown Resorts and Star Entertainment are among corporate giants who have applied for the federal government’s $130 billion JobKeeper welfare subsidy.
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Some of the biggest companies on the ASX – worth a combined $58 billion – are lining up for their share of the federal government’s $130 billion JobKeeper wage subsidy.
Companies including Qantas, Tabcorp, Crown Resorts, Star Entertainment and hearing implant maker Cochlear have applied for the scheme, which was introduced to help businesses retain employees during the COVID-19 crisis and recover quickly afterwards.
The Australian reports the corporate heavyweights are few of 835,000 businesses enrolled in the scheme nationwide, which will pay 5.5 million of their employees $1500 a fortnight.
The Treasury forecasts a $50 billion hit to the economy in the June quarter, and the jobless rate is also expected to rise to 10 per cent, from a low of 5.1 per cent in February.
Employers: We’ve started processing #JobKeeper payments, so if you’ve enrolled you’ll need to take the next step & identify your eligible employees to ensure you get reimbursed. Check out our video below to help you complete this step 👇 Info @ https://t.co/SZahWn5pbL pic.twitter.com/mvOW5VwiRs
— ato.gov.au (@ato_gov_au) May 12, 2020
Josh Frydenberg said the JobKeeper subsidy represented about 16.4 per cent of the nation’s gross domestic product and had sent government debt soaring to $618bn.
However, the scale of the spending has helped limit the unemployment rate. This was noted by the Reserve Bank in a statement on monetary policy on Friday.
“Although there is expected to be a large increase in the unemployment rate – perhaps peaking at around 10 per cent – the increase would have been much larger were it not for the JobKeeper wage subsidy program,” the RBA said.
“The JobKeeper program will support employee earnings by reducing job losses.
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“The program also provides a wage floor for eligible employees that will increase income in the near term for lower-paid employees and limit the decline in income for those who have had their hours reduced or been stood down.”
The Australian reported while the Treasurer said the scheme “saved the bacon” of some businesses, it was temporary. Payments are due to end on September 27.
There is also pressure from the opposition for the Australian Government to extend the scheme as well as pressure from Liberal MP Jason Falinski to phase it out when schools return full-time.
“Australians know there is no money tree,” Mr Frydenberg said on Tuesday.
People aged under 20 experienced the largest % drop in jobs since Australia recorded its 100th confirmed COVID-19 case. For more, see https://t.co/d0qj9V8yQa pic.twitter.com/UZ86dydIjO
— Australian Bureau of Statistics (@ABSStats) May 8, 2020
“What we borrow today, we must repay in the future. Temporary and targeted, the new spending measures were not designed to go forever but to build a bridge to the recovery phase.”
According to the Bureau of Statistics’ most recent survey of businesses, about 45 per cent of firms reported the scheme had influenced their decision to continue to employ staff.
A total of 60 per cent of surveyed firms registered for the program were also intending to maintain their workforce.
JobKeeper has tight eligibility criteria – businesses turning over more than $1bn a year must show a monthly revenue fall of at least 50 per cent to access the scheme.
Originally published as Australia’s JobKeeper wage subsidy: Qantas, Tabcorp, Crown Resorts line up for help