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When the Morrison Government first announced its JobKeeper scheme, I warned that it would create cash flow problems for Australian businesses:
Perhaps the biggest problem with this scheme is that it requires cash-strapped businesses to pay their employees now (backdated to 1 March) but not receive reimbursement from the ATO until May.
Thus, firms will need to cover any shortfall from their own cash reserves or via short-term loans.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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