Coalition under extreme pressure to reinstate JobKeeper

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The NSW government will formally request the federal government reinstate the JobKeeper wage subsidy scheme, amid expectations that the COVID-19 lockdown of Greater Sydney will be extended for at least another month. The state government is also believed to have sought financial modelling on a number of scenarios, including extending the lockdown until 17 September:

NSW Treasurer Dominic ­Perrottet is expected to submit a request for the reintroduction of the JobKeeper wage subsidy scheme to the commonwealth based on the new timetable.

The federal government is ­already considering extending ­financial support measures to larger businesses, asking Treasury to consider options on lifting caps and providing payments to specific industries that may not be located inside an official hotspot.

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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.