JobKeeper numbers decline by more than 35,000 employees

JobKeeper payments have declined in a sign the economy is recovering, although more than 1.5 million Australians still rely on the payment.

The number of people relying on JobKeeper payments has declined by more than 35,000 employees in November in a sign the federal government says shows the economy is recovering.

Exclusive Australian Taxation Office (ATO) data show there were 1,597,702, employees relying on JobKeeper in November compared with 1,631,197 in the previous month.

At the same time, the number of employers relying on JobKeeper dropped by 7200 from 511,136 in October to 504,136 the following month.

This compares to JobKeeper 1.0 which supported more than 3.6 million workers and around one million businesses at the start of the pandemic

The release of the figures comes as the government prepares to phase out the payment at the end of March.

While declaring there was still a long way to go, Treasurer Josh Frydenberg said the latest data showed the economy was continuing to recover strongly from the coronavirus crisis.

“Between October and November last year, 7000 fewer employers and around 35,000 fewer employees were on JobKeeper. Over the same period, around 90,000 additional jobs were created in the economy,” he said.

Josh Frydenberg says the economy is recovering. Picture: NCA NewsWire/Daniel Pockett

“At the height of this crisis, JobKeeper was an economic lifeline for 3.6 million Australians but the continued reduction in the number of employers and employees relying on the payment is a positive sign that our economic recovery is well under way.

“There is still a long way to go but Australians can look to the future with confidence and hope.” The latest labour force data shows that there were also 90,000 jobs created over the same period.

The Government announced in July last year that JobKeeper would be extended from the end of September 2020 until March 28 this year to help businesses that continued to be significantly impacted by COVID-19. To be eligible for the extension, businesses were required to demonstrate an actual decline in turnover in the previous quarter and not a “projected decline” as was required under the original test.

In November, almost 90 per cent of employees on JobKeeper received Tier 1 payments of $1,200 per fortnight, with the remainder receiving Tier 2 payments of $750 over the same period.

Victoria has received the bulk of the JobKeeper 2.0 payments, accounting for almost 40 per cent handed out in October and November.

NSW has received around 32 per cent while QLD obtained 15 per cent. October was the first month of the JobKeeper extension. The faster than anticipated transition off JobKeeper is attributed to a stronger economy with the government expecting the trend to continue.

While businesses had projected sharp declines in turnover, stronger actual outcomes have allowed businesses to wean off the payment.

Employers receiving JobKeeper must submit a declaration, reaffirming eligible employee details and actual and expected turnover.

The new data comes amid revelations last week that the ATO had “red-flagged” around 6000 cases of potential rorting of the $130 billion wage subsidy scheme, including dodgy employers signing up jailed criminals, dead people and fictitious employees.

The details were contained in FOI documents released to the ABC.

But in a statement issued tonight, the ATO declared only a minority of the flagged cases were later found to be “fictitious” with no payments being handed out.

“Where claims including fictitious employees are identified, no JobKeeper payments are or have been made,” it said

“There have been very few attempted claims for fictitious employees.
“The ATO is not aware of any ultimately successful claim for deceased or other fictitious employees.”