MP: More companies wrongly claimed JobKeeper as scheme went on

JobKeeper overpayments have been described as ‘the biggest waste of taxpayer money in Australian history’ by the deputy chair of a parliamentary committee on economics.

The percentage of companies whose turnover increased while they were getting JobKeeper from the Commonwealth jumped substantially during the first six months the scheme operated during 2020.

Treasury data crunched by Labor MP Dr Andrew Leigh into a state-by-state breakdown of JobKeeper shows that in the first three months it operated, between April and June last year, 22 per cent of companies in NSW who claimed the subsidy actually increased their turnover.

But as the scheme rolled on and the amount of money going out the door rose, the number of firms receiving the taxpayer subsidy, despite increasing their turnover, also jumped.

Deputy Chair of the Standing Committee on Economics Andrew Leigh.

JobKeeper went to companies whose revenue was predicted to drop by 30 per cent if they had revenue of less than $1 billion and 50 per cent if their revenue was higher.

In total $89 billion was spent on the scheme but $20 billion of it ended up going to firms who actually increased their turnover.

While 22 per cent of firms wrongly got JobKeeper in its first three months, by July and September 2020 more than a third of firms in NSW getting JobKeeper were not entitled to it.

In the scheme’s first three months, $1.5 billion of JobKeeper went to firms doing well in the pandemic, in the second three months, $3.1 billion went to firms whose revenue rose.

The percentages on undeserving JobKeeper recipients in other states were even higher.

Between July and September the percentage of firms getting JobKeeper whose turnover increased was 45 per cent and 43 per cent respectively.

Dr Leigh, who is parliament’s Deputy Chair of Standing Committee on Economics, said it was clear early on there were problems with the scheme, and it was a good idea badly managed.

“Josh Frydenberg knew within a few months of JobKeeper starting that over one-fifth of the money was going to firms with rising revenues, yet he didn’t step in,” Dr Leigh said.

“JobKeeper overpayments are the biggest waste of taxpayer money in Australian history.”

Originally published as MP: More companies wrongly claimed JobKeeper as scheme went on