The Federal government will soon unveil the second phase of the JobKeeper wage-subsidy program, as industry cringes at the prospect of renewed restrictions and more evidence emerges in the argument for continued economic support.
Over the weekend Finance Minister Mathias Cormann confirmed the JobKeeper scheme will end in September in its existing form, telling media the government will ensure any ongoing support is “appropriately targeted” to take in the businesses that genuinely need it.
This is likely to mean tougher eligibility guidelines and more frequent revenue-test snapshots. Cormann and Treasurer Josh Frydenberg will outline the results of a review into the scheme this week and the associated changes to the program, which are tipped to include a lower $1,000 per fortnight payment for eligible workers.
Many have suggested a ‘financial cliff’ is looming when JobKeeper ends in September, alongside other measures expiring at the same time, such as rent deferrals and protections against insolvency.
Figures published today by Deloitte Access Economics, calculated on Government and ABS data, cite around 240,000 businesses are at high risk of failing if support is ended in September. Particularly seen at risk are businesses in hospitality, professional services and transport.
The AHA and TAA also released modelling today, outlining the economic benefit of assistance to Australia’s hospitality and accommodation sectors. The draft report through Ernst & Young (EY), Economic impacts of stimulus for the Accommodation and Food Services Sector, focused on the extension of JobKeeper until March 2021, and the suspension of Fringe Benefits Tax (FBT) for three years.
The research finds the support measures return the investment by Government several times. For instance, suspending FBT on accommodation, meal, beverage and entertainment expenses would have a minor impact on FBT tax collected, while returning 3.25 to 3.81 times the direct cost in economic benefits.
“The draft report shows that depending upon final Government policy settings, three of the four JobKeeper scenarios examined indicate economic returns range from 1.42 to 3.38 times the initial cost to Government,” notes AHA National CEO Stephen Ferguson.
The EY document noted 84 per cent of businesses reported decreased revenue, with 53 per cent reporting revenue decreases of 50 per cent or more. Nationally, accommodation hotel room revenue has fallen 77 per cent and occupancy rates 66 per cent.
NSW continues to grapple with fresh positive cases of COVID-19, centred around two separate clusters, with mystery cases making the virus detectives “really concerned”.
The State’s contact tracing team has swelled from six people in March to 180 over the weekend, with ability to double again quickly and talk of more if required.
From today international arrivals into Sydney Airport are being limited to 350 a day, down 100 from the previous cap, as a second wave of coronavirus infections continues in Victoria, with corresponding tightening of rules, and NSW authorities considering following suit.
NSW has recorded double-digit new cases for days, and 20 new cases overnight, bringing the State’s total to 3,399. Fortunately, all of these new cases are from known sources.
“Where we are unable to find links between cases that means we haven’t been able to lock down that cluster and there may be other people out there,” warns NSW Deputy Chief Health Officer, Jeremy McAnulty.
Cases confirmed associated with the Crossroads Hotel cluster have grown to 48, as Victoria reported another 428 on Friday and 217 new cases Saturday.
Authorities have slammed a group of 60 people at a house party in Schofields on Saturday night, with each reveller issued a $1,000 fine.
Police were called following noise complaints, deploying a helicopter, dogs unit and officers from several neighbouring commands to manage the reportedly “intoxicated” crowd. A brawl broke out involving 15 people and pepper spray was used by the police. Thirty people were arrested for refusing to leave, and 15 were taken to Riverstone Station to have their identities verified.
Under current regulations gatherings of more than 20 people are not permitted, and NSW Transport Minister Andrew Constance is urging people such as the party-goers to take responsibility for their actions.
“Think about what you’ve just done. You’ve just put an entire state … 8 million citizens at risk.”
NSW Health is stressing all citizens should take extra care and follow recommended actions:
- Stay home if you have ANY symptoms – except to get tested
- Improved testing methods are seeing most results delivered in 24-48 hours
- Stay 1.5m apart from other people at all times
- Masks: recommended, particularly where social distancing is compromised
- Do not go where there are crowds
- Get tested – even if only mild symptoms
- Clean hands thoroughly and regularly, using soap and running water for 20 seconds, or alcohol-based sanitiser
- Protect others from your cough or sneeze – into a tissue or your elbow
- No gatherings of more than 10 people
- Avoid gyms – ensure equipment is thoroughly cleaned before use and strict social distancing
- Venues must have a COVID-Safe plan, ensuring physical distancing between customers and staff, good hand hygiene, and staff are checked for symptoms before beginning work
