Scott Morrison stands firm despite Labor call for JobKeeper 2.0

Anthony Albanese says he has no idea why the federal government will not restore the JobKeeper scheme, as business backs more support for workers and bosses.

Scott Morrison in Canberra on Wednesday. Picture: Gary Ramage

Anthony Albanese says he has no idea why the federal government will not restore the JobKeeper scheme, as business backs more support for workers and bosses doing it tough during the long Greater Sydney lockdown.

The Opposition Leader said the benefit of the JobKeeper program was that it kept the link ­between workers and their companies, compared to the new ­system where workers receive support directly from the government if they lose hours because of the lockdown.

Scott Morrison will not restore JobKeeper but on Wednesday increased assistance for workers to the same rate of the wage subsidy scheme, at $750 a week.

The Prime Minister also expanded assistance to businesses that had suffered a 30 per cent reduction in turnover to as much as $100,000 a week, up from a maximum of $10,000 a week.

The expanded business support is conditional on companies maintaining their employee headcount as at July 13, including permanent and long-term casuals. But Mr Albanese said, while he welcomed extra support for business and workers, he was “concerned that people will still fall through the cracks”.

“We don’t understand why they wouldn’t have just moved back to JobKeeper given that we know that was a system that worked in keeping that direct contact between employees and employers,” Mr Albanese said.

He said tourism businesses outside of Sydney would be impacted by the lockdown but would not have access to support.

“So it’s a whole range of individuals and businesses that will see their income hurt substantially, and we’re worried that they’re falling behind,” he said.

Mr Morrison said JobKeeper, whereby assistance was paid to companies to retain employees, was “not the right solution for the problems we have now”.

“What we are doing now is faster. It’s more effective, it’s more targeted. It’s getting help where it is needed far more quickly,” the Prime Minister said.

“We’re not dealing with a pandemic outbreak across the whole country. When we did JobKeeper, we had to employ it across the whole country all at once and we did it for six months.

“What we need now is the focused effort on where the need is right now … so it can be turned on and off to the extent that we have outbreaks that occur.”

ACTU president Michele O’Neil said: “JobKeeper saved jobs and provided the security of knowing that you had a job to ­return to. Workers in NSW, and workers who will be affected by lockdowns, need that security.

“Bringing in JobKeeper 2 which covers all workers is not just essential to help workers survive this and future lockdowns, it is also necessary to put money in the hands of working Australians, so that they can spend and we can rebuild our economy once the lockdowns end.”

Business Council of Australia chief executive Jennifer Westacott said the government’s new package would “help protect jobs and help businesses bounce back”.

Australian Chamber of Commerce and Industry acting chief Jenny Lambert said it had come “not a moment too soon” for millions of Australians”, adding: “The support is greatly needed.”