Coronavirus: MPs push for JobKeeper overhaul

A growing number of Liberal MPs are calling on the government to stop paying JobKeeper money if businesses no longer need it.

NSW Liberal MP Jason Falinski says the government should consider phasing out the payments once all schools return full-time next month. Picture: AAP

A growing number of Liberal MPs are calling on the Morrison government to stop paying businesses JobKeeper money if they no longer require help, while demanding the program be extended beyond September to those suffering ongoing financial hardship.

The internal push to overhaul the $130bn scheme came as some Liberal and Labor MPs asked for special consideration for thous­ands of airport employees, who work for the foreign-owned air services provider Dnata, to receive the $1500 fortnightly payments.

Australian and foreign governments and their agencies are not entitled to JobKeeper money.

Treasury is reviewing the wage subsidy scheme, which is not due to end until September 27, and will look at “trigger points” for moving people off the payments. Once a business becomes eligible for JobKeeper, it remains eligible for the duration of the program.

Far north Queensland Liberal National Party MP Warren Entsch, whose electorate of Leichhardt takes in the badly-hit tourist destinations of Cairns and Port Douglas, said there was a “strong case” for extending JobKeeper for some industries.

“Cairns and Port Douglas in particular were the first ones to go into this pandemic, to crash when international flights crashed. I suspect­ we’ll be one of the last ones out of it,” Mr Entsch said.

“I would rather extend it to people­ who need it. If that means to say to those who no longer need it, ‘it’s cut short’, I don’t have a problem with that.”

While Scott Morrison has refused to say whether the end date for JobKeeper would be scaled back or extended, NSW Liberal MP Jason Falinski declared the government should consider phasing out the payments once all schools return full-time next month. “It needs to be well-signalled,’’ Mr Falinski said.

“And we need to respond ­rapidly to any unintended consequences that might have, but that should be the point we start to phase it out. We need to keep as much money as we can, because we’ll need it in the next two to three years to get the economy back to 100 per cent.”

NSW Liberal MP Craig Kelly said JobKeeper recipients should be reviewed on a “business by business” basis. “In Victoria, for example­, a golf course may have been closed because of Daniel Andrews­’s closures,’’ he said.

“Now that has been lifted, the golf course is back up, running full steam ahead, why should that business get JobKeeper payments? If you do cut those things off when the business is back up and running, it might give you some flexibility to do something with the airline industry, who may need some support.”

Anthony Albanese said it was problematic that a woman with three children who had worked in a casual job for 11 months would receive nothing — because casuals must have been employed regularly for at least a year — while a university student working six hours’ a week for pocket money could have their income significantly boosted under JobKeeper.

“Some of the design of the program­ has had flaws,” the Oppos­ition Leader told Sky News.

Labor will move to disallow two elements of the JobKeeper package that prohibit universities and companies fully owned by foreign governments from accessing the scheme, amid concerns it does not apply to the 5500 Dnata workers or the higher-education sector.

There are more than 835,000 businesses employing more than 5.5 million workers who are enrolled in the JobKeeper program.