When the Morrison Governments $1500 a fortnight Job Keeper 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; 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.
Not surprisingly, reports are emerging that back my claims and show that JobKeeper is too complicated. Below are some examples of the types of issues being experienced.
