Businesses rush to sign up for wage subsidies in $130 billion coronavirus economic lifeline
More than a quarter of a million businesses have already signed up to the federal government’s $130 billion wage subsidy scheme in just 24 hours. Here’s why it could be a game-changer for the AFL’s thousands stood-down staff.
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More than a quarter of a million businesses have registered to share in an unprecedented $130 billion scheme to subsidise the wages of nearly half of Australia’s workforce.
The Australian Taxation Office will spend the next month approving businesses smashed by the coronavirus crisis for $1500 fortnightly subsidies for their workers, with the cash to flow from the start of May.
In the 24 hours since the package was announced by Prime Minister Scott Morrison, 276,937 businesses registered their interest with the ATO.
The Herald Sun understands the AFL — which has stood down 80 per cent of its workforce including coaches and front-office staff — is eligible for help from the scheme.
Six million workers are expected to receive the flat subsidy, including those stood down or laid off by major retailers and hospitality venues, who are being encouraged to contact their employers to remain on their books with the government’s support.
Treasurer Josh Frydenberg said the spending blitz would leave a “debt burden that will be shouldered by the generations to come”.
But he said the government was determined to ensure that “Australians remain in a job and businesses remain in businesses”.
“We certainly can’t save every employee or every employer,” Mr Frydenberg said.
“This is unprecedented in scope. So we will continue to do what is necessary … I think the weeks ahead will be tougher but I think yesterday’s announcement will support many for the period ahead.”
The economic lifeline may also help rescue Australia’s distressed airlines, amid reports Virgin Australia was seeking a $1.4 billion bailout, which prompted Qantas to suggest it would expect an even bigger loan to level the playing field.
Finance Minister Mathias Cormann said the aviation sector had already received $1 billion worth of support.
“On the other side of all of this, we are committed to ensuring that … we have two competitive airlines,” he said.
“It is not our plan to take a stake in an airline.”
Australian Council of Trade Unions secretary Sally McManus said the package was “a rare moment in history where you’ve got the union movement, the government and big business all agreeing”.
“We’re going to do everything we can to keep people in jobs,” she said.
Unions and business groups are negotiating to ensure there is the flexibility for employers to reduce the hours worked by employees in coming months if required, with the certainty that they will receive the $1500 fortnightly payment.
“The companies who can get this have got to have a big revenue drop, so they’re not going to need people that are full-time,” Ms McManus said.
“We are now looking at that and what can be done.”
Business Council of Australia boss Jennifer Westacott agreed, saying it was “in people’s interest to keep their employees connected so that their businesses can come back”.
She described the package as a “country-saving moment”.
“This will save many, many businesses, many that would have gone under,” she said.
Opposition Leader Anthony Albanese backed the plan and said Labor wanted to ensure “no one has missed out” before parliament sits next week to rush it through.
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