The end of JobKeeper: one million more unemployed Australians

The end of JobKeeper: one million more unemployed Australians Main Image

By David Smith MP

30 March 2021

The government’s so-called JobKeeper wage subsidy program came to an end on 28 March. This is simply too early to stop this program with nearly 500,000 Australian businesses and over one million Australian workers still relying on this support. In our community there are over 1,000  businesses still receiving JobKeeper.

Someone needs to tell the Morrison government that the COVID-19 pandemic is far from over. Both the health and economic crisis is still going on and the government needs to reflect this fact in its policy responses.

What is the government’s plan to support these people who could lose their jobs almost overnight? The PM and the Treasurer say it is all ok because JobSeeker is there to help these people. I say shame on the government for potentially forcing all of these people into unemployment. I am deeply concerned that we will see a repeat of the horrible scenes of thousands of Australians lining up outside Centrelink offices around Australia. That is what happened last year when the government waited too long to put in place JobKeeper.

The government’s report card on the economic management of the COVID-19 pandemic have not been good enough. They have acted too slowly on putting in place a wage subsidy and they have cut this payment a number of times and are now about to pull the rug from under the feet of businesses, workers and the economy.

I have a suggestion for the PM and the Treasurer, instead of cutting their JobKeeper program and potentially turning 500,000 businesses and 1.5 million workers into JobLosers. Why not chase up your friends in big business who have taken JobKeeper payments while still making big profits and force them to pay back this money and then use that money to support those who need it.

According to an AFR article: “of the listed 66 companies that took JobKeeper in the second half of 2020, 58 that received payments totalling $741 million reported increased profits. JobKeeper payments of $284 million also accounted for 20 per cent of the improvement in underlying earnings on pre-pandemic levels reported by 34 companies.” (https://www.afr.com/policy/economy/pay-back-jobkeeper-to-team-australia-20210322-p57d15)

My colleague Andrew Leigh has reported that: Harvey Norman received $22million in JobKeeper and made record sales not paying back the JobKeeper money, Solomon Lew received a $20 million dividend after getting JobKeeper … nothing paid back, Nick Politis car dealerships received $130 million in JobKeeper payments. Profits up, massive dividends paid out, nothing paid back.

I say it shouldn’t be voluntary to pay these amounts back, it should be compulsory. JobKeeper was meant to help Australians get through the worst economic crisis in our lifetime, not line the pockets of Australia’s richest people.

The government’s administration, language and spin on this program have all been sub-standard. JobKeeper, JobSeeker, JobMaker …  all of these programs have been about marketing and spin instead of substance. All Mr Morrison cares about is what sounds right, not what is right.

They have left people guessing as to what they are going to do next at every turn. Waiting until the last minute to announce changes, instead of giving people the certainty they need to plan ahead.

Labor has always said that financial support needs to be tailored to the economic conditions, which is why the Morrison Government must urgently consider options to provide targeted support to hard hit parts of the economy and ensure those who need financial support continue to receive it.

There are sectors like travel, the arts that will need support for a period of time and the government should be ensuring these supports are in place, and ensure that every business and every worker is supported until we are through the COVID-19 pandemic.

I am calling on the government to reverse this heartless decision and keep the proper supports in place for those who need it. The health and economic crisis that is the COVID-19 pandemic is not over, so the support for those who need it should not be taken away.

If you are having your JobKeeper payment taken away and are not sure of what to do next you can contact my office and we will help you navigate this difficult time.

Thanks for reading,

David