Calls for government to splash the JobKeeper cash

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May 25 2020
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The Morrison government’s sudden cash windfall following JobKeeper being overvalued by $60 billion has resulted in leading advocacy groups calling for its expansion.

The Treasury has now revised the cost of the JobKeeper program from $130 billion to around $70 billion, and now expects 3.5 million employees to be covered, instead of the initial 6.5 million estimates.

The latest updated figures show that 910,055 businesses have enrolled in the program, with $8.7 billion paid out to 759,654 businesses, covering around 2.9 million employees.

The government’s $60 billion JobKeeper “reporting error” has advocacy groups such as GetUp saying the windfall should be used to support casual workers and people on temporary visas who have previously missed out on vital income support.

GetUp’s national director, Paul Oosting, highlighted the government should use this opportunity and, instead of cutting JobKeeper, expand it as “the funds are literally all there”.

“JobKeeper was proof that the money for social spending was always there,” he said.

“There’s no justification to cut these vital funds that are keeping food on the table for families across the country.”

The advocacy group highlighted how families who are facing homelessness due to COVID-19 job losses are turning to generosity of others instead of government support to get through the crisis.

“This has been one of the government’s biggest policy failures in this pandemic; now they have the opportunity to step up and do the right thing,” Mr Oosting said.

“If Scott Morrison doesn’t use this opportunity to extend JobKeeper to casual workers and people on temporary visas, then he cannot say it’s because of the cost.”

While unions, the arts and entertainment industry and the heavily hit tourism sector all fight to get their hands on some of JobKeeper’s leftover cash, key ministers all but ruled out expanding the program.

Treasurer Josh Frydenberg has no plans to make wholesale changes to the current JobKeeper scheme.

However, the Australian Treasurer has noted the unspent money could be used to help the tourism industry beyond the six months for tourism, to help the sector get back on its feet.

The program, which was designed to keep people connected to workplaces that were decimated by the COVID-19 outbreak, is set for review in the coming months.

“The tourism sector could be one sector in need of further support,” Mr Frydenberg told the media. “That’s what we’ll look at in the context of the economic situation at the time.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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