Morrison takes responsibility for $60bn JobKeeper blunder

But the PM has refused to expand the JobKeeper payment to include all casuals and people in the arts sector.

Prime Minister said the Australian Taxation Office made an “administrative error”.

Scott Morrison has taken responsibility for the $60bn funding gaffe of the JobKeeper scheme as he pushes back against calls to expand the eligibility of the payment.

The Prime Minister said the Australian Taxation Office made an “administrative error” when it reported that about 6.3 million workers were enrolled to receive the $1500-a-fortnight subsidy.

On Friday, that number was revised down to 3.5 million workers at a total cost of $70bn — down from the initial estimate of $130bn.

“Treasury put forward an estimate as to what they thought the demand for that program will be and they thought at that time it would be reaching out to around six million people,” Mr Morrison said.

“Now it has proved that this has not been the case and the demand is not as high as Treasury estimated. And along the way the information we were getting from the Australian Taxation Office was indicating that official estimate was accurate.

“But as we have all seen, there was an administrative error in how that information was being tracked by the taxation office.

“So sure, the estimate was overstated and the process with the taxation office to keep us updated with that had a flaw in it. We acknowledge that. I acknowledge that. And ultimately I have to take responsibility for those things.”

Mr Morrison said the funding revision means “Australians won’t have to borrow so much money”.

“This is not money that is sitting in the bank somewhere, this $60bn,” Mr Morrison said.

“That is all money that would have otherwise have had to be borrowed. Borrowed against the taxes that future generations would pay.

“I would liken it a bit to this: if you are building a house and the contractor comes to you and says it is going to cost $350,000 and they come back to you several months later and say: things have changed and it is only going to cost you $250,000. Well that is news that you would welcome.”

Mr Morrison said he had no plans to expand the eligibility of the payment to include all casuals and people in the arts sector.

“It is not free money. It is not money that is just sitting somewhere that can be spent. That money is actually sitting in the accounts of banks and foreign lenders all around the world,” Mr Morrison said.

“And so if the suggestion is that we should be increasing borrowings more than would be needed to deliver the program that we have designed and are delivering, the answer is no.”