Coronavirus: Treasurer pulls rug from unis’ JobKeeper bids

Josh Frydenberg has, for the third time, intervened to block universities from using the JobKeeper program to retain staff.

Treasurer Josh Frydenberg. Picture: AAP

Treasurer Josh Frydenberg has, for the third time, intervened to block universities from using the JobKeeper program to retain staff.

The latest rule change means that universities will face a tougher test to get access to JobKeeper than other organisations, being required to show a drop in revenue over the first six months of this year, instead of the one-month and three-month options available to other employers.

The University of Sydney, which was confident of receiving JobKeeper benefits for more than 7000 staff, which would have offset its wage will by up to $140m, is not eligible.

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Vice-chancellor Michael Spence told staff on Monday that is was a “disappointing outcome”.

In anticipation of getting JobKeeper the university had asked staff to make the required nomination on the JobKeeper website and Dr Spence thanked the more than 7000 who had done so.

Two other universities which also expected to receive JobKeeper — Murdoch and Bond — are now also unlikely to do so following the rule change made by the Treasurer, which applies to both public universities, and universities like Bond which not.

The latest change follows two earlier changes, which also prevented universities from getting access to the JobKeeper scheme.

The first followed the government’s easing of the JobKeeper access rules for registered charities early in April, which required only a drop in revenue of 15 per cent compared to last year to be eligible for the benefit, instead of a drop of 30 per cent or 50 per cent.

When the government realised this would include universities, which are all registered charities, it changed the rules to exclude them, as well as independent schools.

Later it changed the rules again when it became clear that the technical definition of a revenue drop used in JobKeeper, measured by GST turnover, would exclude government grant revenue.

This exclusion made it more likely that universities would reach the 30 per cent or 50 per cent revenue fall threshold for JobKeeper eligibility. The government’s latest intervention to deny universities access to the JobKeeper scheme comes as more institutions reveal the impact of COVID-19 on their revenue this year.

UTS said it expected to lose about $190m in 2020, and between $80m and $250m in each of the following two years depending on when international students are allowed to enter Australia again and whether demand remains strong.

Charles Sturt University said it was putting in place a new “sustainable futures” program to deal with an expected revenue loss of $80m this year, which was mainly due to lower numbers of international students.

Signalling job losses, Charles Sturt vice-chancellor Andy Vann said the university would make savings in its workforce, courses, campuses and non-salary expenses, and would release plans for consultation with staff by the end of June.

“Unfortunately, we will be unable to achieve the savings required to be sustainable without job losses,” Professor Vann said.

“We do not have a target number — we will review our operations carefully and with respect to ensure we have the right structures to deliver our sustainability objectives.”

He also foreshadowed a second round of “workforce changes” in early 2021, which would help the university return to a balanced budget by the end of 2021.

CSU’s executive and its council members will take a 10 per cent pay cut for an initial period of six months.