Jobkeeper Gold Coast: Employers struggle to avoid mass lay-offs once changes take effect

GOLD Coast business leaders have warned against an early celebration as the nation’s official unemployment rate drops, fearing JobKeeper 2.0 will flatten any gains.

GOLD Coast business leaders have warned against an early celebration as the nation’s official unemployment rate drops, fearing JobKeeper 2.0 will flatten any gains.

Australian Bureau Statistics figures released on Thursday show the state’s unemployment had fallen from 7.5 per cent to 6.8 per cent.

However, local leaders believe those jobs figures would be dealt a severe blow when rules around JobKeeper were revised towards the end of the month.

As revealed by the Bulletin yesterday, major employers will be ineligible for the JobKeeper subsidy that has kept food on the table for thousands of staff if they fail to prove GST turnover for the first quarter of this financial is at least 30 per cent lower than the same time last year.

TOM HANKS $6K-A-NIGHT QUARANTINE MANSION

Gold Coast Chamber of Commerce president Martin Hall. Picture Glenn Hampson

Gold Coast Central Chamber of Commerce president Martin Hall said the city was bracing for a hit once JobKeeper 2.0 came into effect on September 28.

“The Gold Coast Central Chamber of Commerce believes there will be job losses when JobKeeper 2.0 is introduced. However, at this stage, we do not have a clear picture of how many jobs will be lost,” Mr Hall said.

In July, the Gold Coast’s unemployment rate was 6.1 per cent, its highest in a decade.

The work force participation rate also took a hit with just 65.5 per cent of locals engaged in some form of employment. Regional employment figures for August are yet to be released.

Council of Small Business Organisations Australia CEO Peter Strong said he viewed the predicted decline in those qualifying for JobKeeper as a “glass half full”.

“It is certainly not all the way full but his could mean some areas are doing OK. Others will certainly struggle,” he said.

“The businesses we are particularly worried about are tourism, hospitality and anything with high human contact.

“Even if you are 28 per cent down you will still have to pay rent, and that is a big hit.”

'WHY I HAD TO APPLY FOR 855 JOBS': How Coast man finally found employment

John Howe said JobKeeper has been a lifeline for the Gold Coast. Picture by Scott Fletcher

Executive Chairman of iEDM Gold Coast John Howe said JobKeeper has been essential for his event management business.

“There are no events, so that is a 100 per cent revenue drop off for us,” he said.

“Job keeper going to be essential to companies now the cliff is approaching.

“I think needs to be flexibility terms of individual cases moving forward.

Mr Howe said his company which has 25 employees on the program has not yet had to let go of staff.

“I think the danger is everyone thought we would be back by Christmas, and we are seeing now that it is not.

“JobKeeper has been a great success story in allowing us to maintain people, I encourage the government to keep looking before we fall off the stimulus cliff.”

EARLY WARNINGS FROM COAST EMPLOYERS

THE Gold Coast’s largest employers are drastically assessing the books to avoid mass lay-offs once changes to a government lifeline take effect at the end of the month.

From September 28 major employers will be ineligible for the JobKeeper subsidy that has kept food on the table for thousands of staff if they fail to prove GST turnover for the first quarter of this financial is at least 30 per cent lower than the same time last year.

PRINCIPAL PODCAST: TRINITY LUTHERAN COLLEGE’S TSAE WONG

Government figures in May show the Gold Coast has been one of the hardest hit by the coronavirus crisis.

Giant Coast corporates provided measured responses when asked yesterday about what the JobKeeper rule changes would mean for them. Privately, however, they are fearful of the climate heading into Christmas. They say they will look at other measures, such as annual leave, in a desperate bid to keep staff.

“JobKeeper ending doesn’t mean there will be lay-offs straight away but there will be lay-offs,” one corporate boss said. “It just depends how businesses can drag it out. We won’t see the real damage until November.”

Government figures in May show the Gold Coast has been one of the hardest hit by the coronavirus crisis. More than 27,000 Glitter Strip businesses had applied for JobKeeper, supporting over 100,000 workers. The Federal Government contribution to those staff was $150 million a fortnight.

Accountants the Bulletin spoke to estimate less than 5 per cent of non-tourism businesses surviving on JobKeeper would qualify for payment after September 28. Those still eligible will see staff subsidies drop by $300 a fortnight if an employee worked 80 hours over a four-week pay period, or $750 if they worked less.

QUEENSLAND END OF SCHOOL YEAR TO FINISH EARLY

Village Roadshow said it was not in a position to comment about the JobKeeper changes as it was still “working through the details”. Picture: NCA NewsWire /Steve Holland)

JobKeeper has ensured major firms such as Village Roadshow – the owner of theme parks such as Movie World with 5000 staff – and The Star casino (more than 2000 staff) avoided mass redundancies. Gold Coast childcare giant G8 Education, which has centres throughout Australia, was second only to Qantas in receiving the highest government payment, claiming $86 million. The Star secured $65 million for staff and Village $42 million.

Village Roadshow said it was not in a position to comment about the JobKeeper changes as it was still “working through the details”.

A spokesman for Ardent, the owner of Dreamworld, did not specify if the company would qualify for JobKeeper 2.0.

A spokesman for the Star said the casino had notified staff that it had not qualified and would cease JobKeeper payments after September 27. It did, however, have other options for staff but business was stunted by COVID-19 restrictions.

“More than 75 per cent of our workforce have been returned to their jobs,” the spokesman said. “But the key is restoring as quickly as possible an operational environment that allows us to build further momentum in the business.

“The existing health orders have significantly restricted our capacity. Once they’re relaxed we have an opportunity to stand up more staff.”

Federal Treasurer Josh Frydenberg said businesses were recovering, as seen by a jump in job numbers and a drop in unemployment.

“What we really want to prevent is the scarring effect which economists use regularly when it comes to situations like this COVID-induced recession,” he said. “We want to prevent the situation where people stay unemployed for longer than they have to.”

DON’T BRING PROBLEMS: MP’S SHOCK COMMENTS AT NEW CEREMONY

Queensland Senator Murray Watt

Queensland Labor Senator Murray Watt said the Government had the ability to change the rate and eligibility criteria without passing legislation to ensure vulnerable businesses and workers were not left in the lurch.

“Many small businesses and workers on the Gold Coast are only holding on by their fingernails, and the cuts to JobKeeper will hit many workers and businesses hard – and will mean less money flowing back into the local economy.”

WMS Chartered Accountants partner Stephen Holmes believed the hardest hit to families and the economy was yet to come.

“A good majority of businesses who would have qualified for JobKeeper won’t qualify for the extension,” he said.

“If I had to guess, and this isn’t for my clients, this is for the Gold Coast, I reckon that less than five per cent of businesses who are not in tourism or hospitality would qualify for the new round. Obviously, tourism and hospitality businesses continue to suffer as a result of the border restrictions and a greater percentage of those will qualify.

“The border closures are a double whammy on top of the JobKeeper changes. Hopefully businesses manage. The Gold Coast is coming into some hard times leading up to Christmas”.