La Trobe University believes it is eligible for JobKeeper support
La Trobe University is pushing for JobKeeper funding to help keep its 3000 staff employed.
La Trobe University is pushing the federal government for $50m in JobKeeper funding to help keep its 3000 staff employed as it battles a $150m revenue shortfall this year.
Even though La Trobe’s 2020 revenue has fallen by less than the 30 per cent threshold the government says is required for JobKeeper, the university believes that detailed guidelines published by the Australian Taxation Office indicate it is eligible.
Its application for JobKeeper assistance comes as more universities reveal the large revenue hits they expect this year due to the COVID-19 travel ban cutting international student numbers.
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University of Wollongong vice-chancellor Paul Wellings said his institution was facing a budget shortfall of about $90m and that he and his senior team would take a 20 per cent salary cut for the next 12 months. He said the university had ensured its short-term liquidity with additional borrowings and spending cuts.
Swinburne University vice-chancellor Linda Kristjanson said her institution expected a $76m revenue cut and she and her executive group had taken a 30 per cent pay cut. Both universities are asking staff to take leave and voluntarily reduce working hours.
La Trobe vice-chancellor John Dewar told staff in an email on Wednesday that the university had not expected to receive JobKeeper but later found that, according to analysis of ATO guidelines, it did qualify.
“While we can’t rule out the possibility of a last-minute change to the eligibility requirements, confirmation by the ATO of La Trobe’s eligibility for the JobKeeper payment scheme would be of enormous financial assistance to La Trobe,” he said.
It would provide $1500 a fortnight for each eligible employee until the end of September. The money must be passed on to employees, but it reduces the university’s wages bill and preserves jobs.
Employers such as La Trobe — with annual revenues of less than $1bn — are eligible for JobKeeper if they have had a decline in revenue of more than 30 per cent this year compared with last year.
According to ATO guidelines, the revenue decline is measured by “GST turnover”, a term that has a strict definition and normally does not include government grants, which account for about one-third of La Trobe’s revenue. With government grants excluded, the university’s GST turnover has fallen more than 30 per cent compared with the same month last year.
The university said that independent external advice confirmed it had applied ATO guidelines and methodologies appropriately in determining its JobKeeper status.
All universities have been hard hit by the travel ban and others are keeping an eye on La Trobe’s application and are likely to apply for JobKeeper if La Trobe is successful.
James Cook University said it was “closely watching developments with regard to this matter”.
Treasurer Josh Frydenberg’s office was asked for comment but had not replied by deadline.
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