Cashed-up teens a major flaw in JobKeeper program – and they’re about to come crashing down to earth

CASHED-UP teens highlight a major flaw in the government’s controversial coronavirus support program, writes DENISE CAHILL.

Some casual and part-time employees have been better off under JobKeeper than if they had been working, writes Denise Cahill. Picture: iStock

THE only thing more terrifying than a global pandemic is a cashed-up teen.

That was one downfall of the federal government’s jobs schemes.

Since March this year, a teenager working at a local pizza shop for a handful of hours a week earning just enough money for petrol and beer, started getting $750 a week, regardless of how many hours they worked.

For many, this would be hundreds of dollars more than they pocketed before coronavirus hit.

Some may not have been working at all with many businesses having to stand staff down.

From October, that income will drop to $600 a week, or $375 a week for casuals working 20 hours or less.

It will be reduced again for the first three months of 2021.

The JobKeeper payments should have been tiered from the beginning.

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It’s been a hell of a year, but for casual working youngsters they’ve had a bigger disposable income than they’ve ever seen.

Money to buy tangible goodies like motorbikes and TVs that bring short-term pleasure was all of a sudden at their fingertips.

Now that income is being chopped … and chopped again.

Casual workers should have received the payment that reflected their pre-coronavirus income from the beginning.

For most on JobKeeper, the government supplement was just a portion of their weekly wage.

That should have been the case for casual workers too.

There are currently 4777 NT businesses in the NT signed up to JobKeeper.

That’s thousands of businesses that have survived and been able to offer a livelihood to employees in the Territory.

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Chamber of Commerce NT chief executive Greg Ireland said the government’s decision to extend the wage subsidy past September would give some much-needed certainty for these business people.

“Businesses here were very concerned facing that September cliff. This extension will help keep people in business ahead of the next peak season,” Mr Ireland said.

“Clearly not everyone will be a winner out of that, but I’m sure that clarity will be welcomed by business.”

Treasurer Josh Frydenberg said the government expected that the number of JobKeeper recipients would reduce substantially.

About 1.4 million people are expected to remain eligible in the December quarter, and one million in the March 2021 quarter.

“JobKeeper 2.0, together with the extension of the coronavirus JobSeeker supplement, will assist Australians right around the country,” Mr Frydenberg said.

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The JobKeeper scheme has been integral in keeping people in jobs, shop doors open and families fed.

But the haste in which it was rolled out means it wasn’t the best it could have been.

Not only will some people now need to recover from the mental ramifications of coronavirus restrictions, they’ll also have to readjust the budget after receiving an inflated income for the past few months.

Denise Cahill is the Head of News at the NT News

Follow @DeniseCahill18