JobKeeper’s fatal flaw exposed again

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Industrial relations lawyer, Daniel Anstey, is the latest to attack the Morrison Government’s JobKeeper program for being a convoluted, bureaucratic mess.

In particular, Anstey argues that JobKeeper’s design will create a liquidity crisis for some businesses, which will inevitably mean that many employees will unnecessarily miss out on the scheme. This is because JobKeeper requires businesses to pay their employees $3,000 a month now (backdated to 1 March) but not receive reimbursement from the ATO until May:

For a small business with no revenue and 20 employees, finding $60,000 a month on top of rent and all other costs is a big ask, an ask which could leave many thousands of Australians ineligible for JobKeeper through no fault of their own.

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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.