Federal Treasurer Josh Frydenberg to wind back JobKeeper payments later this month
Josh Frydenberg says he’s ready for Victoria to step in and help ease the economic burden of COVID-19. And while the state is feeling the pain, the Treasurer has a point, writes Sophie Elsworth.
Opinion
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Absurdity of lockdown rules in Victoria exposed
Government handouts can only last for so long.
Federal Treasurer Josh Frydenberg has been given the green light to cut back the JobKeeper payments for nearly four million recipients later this month.
But the state’s most senior Liberal politician was visually at his wits end this week over the mishandling of the Victorian crisis and the Andrews’ Labor Government’s reliance on federal financial lifelines.
“We are picking up the tab,” Frydenberg told 3AW’s Neil Mitchell on Monday.
“I want Victoria to do more of the economic lifting”.
Reports by the Herald Sun this week found the devastating second wave of coronavirus is costing the state between $300 million and $400 million a day.
Treasury expects that by Christmas, of the 2.25 million JobKeeper recipients 60 per cent – or 1.4 million – will be from Victoria.
The JobKeeper payments were only ever meant to be temporary and those coming off the payments next month are businesses who will be getting back on their feet.
But of those having their payments stopped completely will be few from the crisis-stricken Victoria.
All workers eligible for JobKeeper payments automatically received $750 a week – or $1500 a fortnight under the scheme.
Some workers have never had it so good, receiving more now than there were pre-Covid from their employer.
This has caused mayhem for various industries including farmers who have complained of being unable to find fruit pickers to work.
And as pub baron Craig Laundy said, he’s seen workers “refusing to get off their backsides” and knocking back shifts.
Why would workers want to get paid less for doing a hard day’s work when they could sit on the couch watching Netflix and get more cash in their pocket?
The JobKeeper scheme is set to cost the nation $101 billion and has helped prop up around four million Australians through to the end of this month.
Fortnightly payments will then be wound back from $1500 per fortnight for eligible employees and businesses to $1200 for full-time employees and $750 for part-time workers.
In January 2021, payments will be cut again to $1000 fortnight for eligible employees and $650 per fortnight for part-time employees.
Federal Opposition leader Anthony Albanese has previously attacked the JobKeeper scheme and said it was outrageous that some workers were getting paid more now via the scheme than when they were in paid employment.
The initial JobKeeper scheme has also been extended for a further six months until March 2021.
It’s going to be a tough road ahead for many Australian businesses, particularly those in Victoria, but the sooner employees are back to work the better for everyone.