JobKeeper recipients to face review

Finance Minister Mathias Cormann says the next phase of JobKeeper will take place in an economic environment better than the government originally feared.

Australian Federal Treasurer Josh Frydenberg and Finance Minister Mathias Cormann.

Finance Minister Mathias Cormann says the next phase of JobKeeper will take place in an economic environment “better” than the government originally feared.

Josh Frydenberg is reportedly considering a move away from the flat $1500 rate of wage subsidies toward sliding payments.

Ahead of the Treasurer’s economic statement on Thursday, Senator Cormann said it will be appropriate to reassess which businesses still need support.

“Clearly the situation is now better than it was at the end of March. The situation is better than what we feared would be the case now,” he told Sky News.

“There will be adjustments to the program to ensure it is appropriate for the next phase.

“When we first designed the program back in March, speed was of the essence.

“As we get to the end of September, clearly it is going to be important to reassess which businesses still should be receiving this support.”

The Weekend Australian on Saturday revealed the $70 billion JobKeeper scheme is set to be extended beyond September, with Josh Frydenberg flagging an extra round of economic support in next week’s economic statement.

Meanwhile, ACTU president Michele O’Neill said the trade union will continue to support new flexible workplace rules if JobKeeper support remains at a high level and is time-limited.

The trade unions are resisting calls from within government and business to make new industrial relations rules brought in last March to become a permanent fixture.

Ms O’Neill said on Sunday the current wage subsidy for $1500 a fortnight per worker was the right level, and she was happy to consider more flexible work arrangements if the program is extended for six months.

“We think that the level is right, but we will look at what the government announces and discuss what’s needed to ensure that those workers get JobKeeper, that they’re subsidised and they stay connected to their jobs,” she told the ABC.

“(The ACTU would support flexible arrangements) for people getting JobKeeper and for that time, a time limited period while they’re getting the JobKeeper support.”

The Treasurer told The Weekend Australian that the Victorian COVID crisis would deliver another economic shock and threatened to undermine the broader national economic recovery.

“It is clear the economy will need further economic support and we will continue to do what it takes to keep businesses in business and Australians in jobs,” Mr Frydenberg said.

“As we have done every step of the way, we will calibrate our response to the economic and health conditions that we face.

“We know that many sectors will take considerably longer to recover, even after restrictions are eased.”