THE Federal Government’s extension of the JobKeeper wage subsidy will save jobs in some of the economy’s most damaged businesses in the essential recovery phase, Mount Gambier Chamber of Commerce president Hayley Neumann says.
Prime Minister Scott Morrison confirmed the payment will run until March 28, 2021 under a twotiered payment system, with the $1500 fortnightly flat payment reduced to $1200 per fortnight from September 28 and to $1000 per fortnight from January 4, 2021.
A lower payment rate of $750 per fortnight will apply for people who work part-time or fewer than 20 hours per week from September 28, which will decrease to $650 from January.
Ms Neumann said the eight month extension was a welcome relief for businesses which would have struggled if JobKeeper payments ceased on the expected September deadline.
“It is great news for businesses, particularly the tourism and hospitality industries and especially if the virus continues to spread as it has been in Victoria and New South Wales,” she said.
“Being so close to the border, people are worried about what they will do the virus spreads or we have to go back into lockdown.
“Extending JobKeeper will help support all businesses if that happens again.
“It is great the government is looking forward to the future so people can have contingency plans in place, rather than a reactive policy.”
Ms Neumann said approximately one quarter – 530 – of Mount Gambier businesses were in receipt of the wage subsidy, payable to businesses that have experienced a 30pc or more drop in turnover.
“Confidence is crucial while we wait for the economy to recover and the JobKeeper payment will provide confidence to some of our businesses,” she said.
“We definitely lose a lot of trade with the hard border closure.”
In announcing the $16b expansion, Treasurer Josh Frydenberg said the scheme recognised Australia’s economic recovery was still in its early stages and a number of businesses and individuals remained significantly affected by the global COVID-19 pandemic.
“The government’s focus remains on reopening the economy where it is safe to do so, but the extension of these measures recognises that some parts of the economy will continue to be affected and need continued support,” Mr Frydenberg said.
“Sadly, as a result of this global health pandemic, businesses will close and people will lose their jobs, but that is why we have extended the Coronavirus Supplement and announced a new skills package to help people transition from welfare to work.
“It is also why we are extending the JobKeeper Payment beyond September to help keep businesses in business and Australians in jobs as our economy reopens.”
Business SA welcomed the expansion, but has called for further support mechanisms to be introduced to help businesses that continue to be affected by restrictions.
The state’s peak independent business body expressed concerns about “those businesses at the pointy end of the pain scale”.
“Some of our members materially impacted by international travel bans are telling us their revenue is down by 70pc or more and that will not be changing any time soon,” Business SA chief executive Martin Haese said.
“Business SA argues these businesses should receive additional financial support measures over and above the JobKeeper payment.”
