When the Morrison Government’s $1500 a fortnight JobKeeper wage subsidy was first announced, I argued that it was far too complicated and contained four key flaws, namely:
- Inadequate cash flow: JobKeeper requires cash-strapped businesses to pay their employees now (backdated to 1 March) but not receive reimbursement from the ATO until May;
- Business turnover must have fallen by at least 30% to qualify, which necessarily will leave many impacted businesses’ employees out, including start-ups;
- Many casual employees do not qualify, since they must have been employed with the company for at least 12 months;
- Employers and sole traders need to first register their interest with the ATO and then await contact, which adds significant wait time and requires bureaucratic input; and
- JobKeeper will create a boom for accountants, who will be engaged to navigate the rules and delay the timing of sales to make sure their businesses qualify.
Over recent weeks we have witnessed numerous examples of JobKeeper’s complexity, which is preventing the scheme from functioning properly and leaving many workers behind (see here, here, here and here).
