Australia’s Reserve Bank Governor Phil Lowe has warned ending the $1500 JobKeeper’s wage subsidy too early would be a “mistake” and it may need to be extended beyond September.
Breaking with the Prime Minister’s rhetoric that the scheme needs to be phased out as soon as possible, the RBA chief has warned the premature withdrawal of stimulus could damage the economy.
But he’s proposed that any extension would likely to be more targeted, for example for the tourism industry hit by international border closures, an option the Prime Minister has previously flagged.
Giving evidence to Parliament’s COVID-19 inquiry today, he also described the nation’s April jobs figures as a “shocking set of numbers.”
How long do people have jobs that they don’t have, Captain Phil?
A much better idea is to leave JobSeeker at the boosted rate and scrap JobKeeper. It is a little lower to remind folks they need to find work, and a massive lift in the dole is long overdue.
By scrapping JobKeeper we avoid all of the mess associated with eligibility, the rorting and the sectional interests.
Scrap it and boost JobSeeker and let the cards fall where they may with no fiscal cliff.
The only problem is in ScoMo’s head given he just loves to kick the unemployed while they’re down.