Labor leader Rebecca White says JobKeeper subsidy should be extended, not wound back

Politicians are calling for JobKeeper payments to be extended to support businesses, not rolled back, after Prime Minister Scott Morrison flagged possible changes to the wage subsidy scheme.

THE Federal Government’s JobKeeper subsidy should be extended, not wound back, to further support businesses doing it tough during the COVID-19 pandemic, Tasmanian Labor leader Rebecca White says.

Her call comes after Prime Minister Scott Morrison last week flagged possible changes to the scheme after a review in June, but dismissed speculation it could end before September 27.

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Ms White said a potential winding back of the program would disadvantage workers and businesses who were relying on it to keep their staff engaged.

She urged Premier Peter Gutwein to lobby the Federal Government to ensure the JobKeeper scheme not only stayed, but was extended, particularly for industries like hospitality and tourism.

Tasmanian Labor leader Rebecca White in parliament. Picture: NIKKI DAVIS-JONES

Ms White said the Federal Government should be looking at the scheme to ensure there was equity across the system.

“We’ve heard of a lot of workers who have missed out, whether they are casual workers or visa holders,’’ she said.

“But at the same time, for some other workers who have received the payment, it’s been much greater than their ordinary earnings.”

Meanwhile, everyday Australians have given JobKeeper a tick of approval, with many supportive of an extension to the scheme beyond its current expiry date.

Half of the 978 respondents to an online survey conducted by personal finance app Humaniti over the weekend said they would like to see the scheme continue beyond September 27.

National Retailers Association CEO Dominique Lamb. Photographer: LIAM KIDSTON

National Retailers Association CEO Dominique Lamb told News Corp a taper period for the JobKeeper subsidy would be welcome news for many struggling businesses.

“Retailers right now don’t need another hit. If you give them something like JobKeeper and then take it away immediately, it would be problematic. But a gradual reduction would certainly give them time to manage their cash flow,” she said.

Danielle Wood, the incoming CEO of public policy think tank the Grattan Institute, said there were strong arguments in favour of extending JobKeeper.

“I’m extremely worried about the situation where a whole lot of government support in the economy is going to cut out at once,” she told News Corp.

“It won’t be business as usual by September, so taking a path that allows you to transition off the JobKeeper payment makes a lot of sense.”