‘Fiscal cliff’ looms as JobKeeper deadline nears

University of Melbourne labour economist, Mark Wooden, says the federal government should use an upcoming review of JobKeeper wage subsidy scheme to fine-tune it. Other economists agree that the scheme should be adjusted so that it targets sectors of the economy that continue to be hardest hit by the coronavirus pandemic.

Meanwhile, Danielle Wood from the Grattan Institute claims Australia faces a “fiscal cliff” when stimulus measures such as JobKeeper end in September:

Treasury is working on transition options from the scheduled expiry in late September and will consider pulling back where it is clearly too generous.

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