Jam Packed Cafe owner Richard Scarr raises JobKeeper loophole with Prime Minister Scott Morrison

When Prime Minister Scott Morrison visited a Hobart cafe for breakfast earlier this month, the business owner delivered more than just bacon and eggs. Find out how the conversation went >>

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A CHANCE meeting a Hobart cafe owner had with Prime Minister Scott Morrison during the PM’s recent visit to Tasmania has prompted a review of a JobKeeper loophole that disadvantages those that took on new businesses during the COVID-19 pandemic.

Richard Scarr, who took over Jam Packed Cafe in August, took the opportunity to raise his plight with Mr Morrison when the PM popped in for breakfast earlier this month.

The Hunter St eatery’s employees are not deemed eligible for JobKeeper payments, even though they were receiving them under the cafe’s former owner, Federal Group.

Prime Minister Scott Morrison trying Bruny Island Oysters during his recent visit to Hobart. (AAP Image/Chris Crerar)

Mr Scarr took on the business believing the five full-time staff would be eligible for the income support payments, but has been told that because he only recently acquired the business, he cannot satisfy criteria relating to a demonstrated fall in income.

“I served breakfast and coffee to him and his wife and I asked if he had 90 seconds to hear an issue with JobKeeper. He said ‘yeah all right’ and I just laid it out as simply as I could,’’ he said.

“He said that was an unintended consequence of the legislation. I think he was a bit taken aback by it.”

Mr Scarr said while he understood there were no promises to make change, he was hopeful of a positive resolution, saying he appreciated the PM’s consideration.

“How good is our country? You can actually speak to your PM and they take something on board. I find that amazing,’’ he said.

Mr Scarr said access to JobKeeper would make a significant difference, saying he was currently “just paying the bills” and trade was less than half what it was this time last year.

Andrew Wilkie MP and owner of Brew at Sandy Bay and Jam Packed in the IXL Building Richard Scarr. Picture Chris Kidd

Federal MP for Clark Andrew Wilkie said Mr Morrison approached him at Parliament soon after the conversation with Mr Scarr and told him the policy was being reconsidered.

“The Prime Minister made a point of coming over to me and recounting the interaction and assuring me he would have a look at it,’’ he said.

“Good on Richard. He really made an impression on the PM and isn’t it nice we live in a country where we can do that.”

Mr Wilkie described the loophole as an “unintended consequence” and an “anomaly” that needed to be urgently addressed.

He said his discussion with the PM had given him optimism the rules may be changed.

“At a time like this where there would be a lot of businesses changing hands and people taking over businesses in good faith and making the same assumption as Richard made, it’s putting business owners at risk and all of their employees at risk,’’ he said.

“I think it’s reasonable to assume that this will be tripping up thousands of businesses around the country.”

Mr Wilkie said his office would continue to lobby the PM’s office and apply pressure to have the policy changed.

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