Small business revenue jump to hit JobKeeper subsidies

Research undertaken by Xero Small Business Insights and AlphaBeta, based on a sample of 100,000 companies, suggests that small business revenue increased by 5.2% year-on-year in September. It is the highest growth in revenue since the onset of the COVID-19 pandemic and could push a large number of JobKeeper recipients off the subsidy:

The extraordinary jump [5.2%] is higher than any month since the COVID crisis began and is even higher than the average year-on-year growth pre-COVID of 4.6 per cent…

In August the government amended the eligibility criteria…

To qualify for the December quarter JobKeeper, business must show turnover has declined by 30 per cent for both the June and September quarters, compared with the same quarters last year.

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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.