$37 million a fortnight taken from 42,000 workers a fortnight after JobKeeper reduction, Labor says
About $37 million dollars a fortnight will be ripped from the pockets of 42,000 workers across the Geelong region when JobKeeper is slashed from Monday, estimates suggest.
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THE Federal Opposition is claiming that about $37 million a fortnight will be taken from around 42,000 workers across the Geelong region when JobKeeper ends.
As the $85 billion national wage subsidy weighs down the nation’s budget bottom line, the government on Monday will reduce the $1500 fortnightly subsidy to either $750 or $1200.
Labor estimates the move will mean workers collectively lose $17.61 million a fortnight in the Corio electorate and $20.07 million in Corangamite, and that more than 19,000 workers in each electorate will be impacted.
The next rounds of JobKeeper with tougher eligibility requirements will run until March and will cost about $16.6 billion.
The Federal Treasury did not respond to confirm or deny Labor’s estimated figures.
Corangamite MP Libby Coker said it didn’t make sense for the federal government to reduce support without a comprehensive jobs plan.
“JobKeeper has done a lot of good and protected many businesses in my region. But
we must acknowledge its failings,” Ms Coker said.
“At the end of the day, the program has been cruelled by Scott Morrison’s botched implementation, poor compliance enforcement, and premature cuts.”
Treasurer Josh Frydenberg said yesterday: “We are providing additional extended support for both Jobseeker and JobKeeper. The economy needs to transition. We want to encourage labour market mobility and get more people into a job. In the budget you will see a number of initiatives and programs that are designed to do exactly that.”
Daisy Dry Cleaning owner Kerry Gauci said two of her employees accessing the subsidy would still be paid more than pre-COVID levels after the drop.
“(Support for my business) is still OK for me. It helps us try and get some business back.
“Because we are in Lara a lot of my customers are Melbourne-based workers,” Ms Gauci said.
She said her business was operating at 20 per cent of September 2019 levels, and it had not recovered to pre-COVID turnover.
Lara dog kennel owner Yvonne Hill said two of her casual workers would still be paid more than pre-COVID.
“They are still ahead of what they would have been (paid) ordinarily,” Ms Hill said.
“We are still tracking at about 80 per cent down of what we usually be. If it wasn’t for grants and JobKeeper we wouldn’t have been able to survive.”
More than $121 million has been handed out by the federal government to Corio and Corangamite businesses since the March.
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JobKeeper payments have topped $15.7 billion to more than 300,000 Victorian businesses as of September 10, and 60 per cent of JobKeeper payments are expected to be made to Victorian businesses in the December quarter. Nationwide $314 billion of support has been announced post COVID.
Between January and March next year JobKeeper is due to fall to $1000 or $650 a fortnight.
Labor’s JobKeeper estimate relies on each employer having on average four employees on the subsidy; 25 per cent of JobKeeper workers losing $300 a fortnight from Monday, and 75 per cent of workers losing $750 a fortnight from Monday. Both are based on government predictions.
It also uses an electorate-level percentage of JobKeeper access to determine how many of the 1.86 million workers nationally, expected to drop off the scheme from Monday, will be from each electorate.
JOBKEEPER REDUCTIONS
CORIO
Businesses impacted: 5201
Affected workers*: 19,763
Lost per fortnight*: $17,609,138
CORANGAMITE
Businesses impacted: 5,928
Affected workers*: 22,528
Lost per fortnight*: $20,072,100
*Estimates
Originally published as $37 million a fortnight taken from 42,000 workers a fortnight after JobKeeper reduction, Labor says