Fears thousands of retail workers will miss out on JobKeeper
Employers and business groups are calling for the federal government to tweak the JobKeeper scheme amid fears thousands of workers will miss out on wage subsidies in Melbourne’s stage four lockdown, which is tipped to blow a $14bn hole in the economy.
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Melbourne’s sweeping shutdown is tipped to blow a frightening $14bn hole in the economy, amid fears thousands of workers will miss out on JobKeeper wage subsidies.
The city’s stage four restrictions could even lead to the national economy shrinking in the three months to September, according to AMP Capital chief economist Shane Oliver, after this period was tipped to see a return to growth.
Mr Oliver estimated the shutdown would cost $12-14bn — up from his $5bn estimate of the initial six-week return to stay-at-home restrictions — based on New Zealand’s experience of similar rules.
Workers employed by some national businesses are ineligible for JobKeeper and will instead be forced on to the unemployment benefit, worth almost $400 less a fortnight.
Employers and business groups are calling for the federal government to tweak the design of the scheme, and for the state government to refine its business restrictions so more jobs are not lost.
To be eligible for the $1500 fortnightly subsidies, businesses must have seen their turnover crash by at least 30 per cent, or 50 per cent for businesses turning over more than $1bn a year.
It means some national chains will not qualify because the closure of their businesses in Melbourne will not be drastic enough as they continue operating in other states.
Workers at Bunnings, Kmart, Target and Officeworks are ineligible because of the national structure of parent company Wesfarmers.
Its managing director, Rob Scott, said many of his 25,000 retail employees in Victoria would be stood down, other than those running click-and-collect services.
While Wesfarmers has guaranteed two weeks of pay for all staff, Mr Scott said workers would “need to look at what government subsidies are available after that”. “We will be doing everything we can to keep particularly our permanent team members on board,” he told the ABC.
Mr Scott accepted the need for shutdowns, but called on the state government to refine the rules, saying Melburnians would need access to different products while forced to stay at home, such as home office supplies and entertainment for their children.
The federal government maintains the design of the scheme is the most fair and efficient mechanism, with the bulk of the money expected to flow to Victoria in coming months.
Treasurer Josh Frydenberg held talks with business groups on Tuesday night about the problems they faced and what further support was needed.
The Herald Sun has been told some businesses have previously restructured to qualify for JobKeeper in specific areas.
It is understood the federal government believes bigger national businesses which do not qualify should be in a stronger financial position to handle localised restrictions.
Opposition treasury spokesman Jim Chalmers warned the post-September overhaul of JobKeeper was decided when Victoria was “opening up soon, not closing down”.
“Given the deteriorating circumstances in Victoria, there’s a clear need for Scott Morrison to take another look and reconsider what he announced a couple of weeks ago,” he said.
“We can’t afford to see more Australians in Victoria and elsewhere left out and left behind.”
Victorian Chamber of Commerce and Industry boss Paul Guerra called on the federal government to extend the $1500 JobKeeper payment, rather than cutting it to $1200 after September.
He also said the scheme needed to be cover workers hired after March 1.
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