Sunday, 19 July 2020
The South Australian Business Chamber is calling on the Federal Government to extend JobKeeper for businesses still restricted by COVID-19 until at least the end of the year and possibly beyond.
The independent peak business body in South Australia says businesses in a range of industries could be wiped out if ongoing wage subsidy support is not received.
The South Australian Business Chamber CEO, Martin Haese, said the Chamber of Commerce and Industry had written to Treasurer, Josh Frydenberg, urging the Federal Government to continue the JobKeeper scheme, albeit in a stepped down approach.
“There is no doubt businesses will have to be weaned off JobKeeper,” said Mr Haese.
“But to simply turn off the tap could have devastating consequences with businesses choosing to lay off staff or close up all together.”
Under the South Australian Business Chamber’s proposal, businesses that continue to be materially impacted by restrictions imposed by Governments such as the one person per two square metre rule and international travel restrictions should continue to receive JobKeeper at the current rate of $1,500 a fortnight until at least the end of the year, possibly beyond. This should be on the basis that a business can prove its revenue remains down materially more than the currently prescribed 30 per cent on pre-COVID levels for the September quarter.
Examples of those sectors that fall into the “ongoing heavy impact” category include travel agents, inbound tour operators, event venues, live performance venues, hire businesses primarily linked to events and hospitality/accommodation venues in locations heavily reliant on international tourism such as Kangaroo Island in South Australia.
The South Australian Business Chamber says many of these businesses remain either closed or sales down by 70 per cent.
For other businesses more broadly impacted by the pandemic, the South Australian Business Chamber argues JobKeeper should proceed past September, although at a reduced rate of no less than three quarters of the current payment provided businesses can demonstrate remaining down 30 per cent over the September Quarter.
Like the current JobKeeper rules, alternative eligibility tests should continue to be available for businesses that had rapid revenue growth pre-COVID-19.
“The South Australian Business Chamber is the first to acknowledge that JobKeeper cannot go on indefinitely and that the Federal Government will have to tighten the belt, particularly for those causal workers who were working for considerably less than a $750 a week salary,” said Mr Haese.
“But, with ongoing uncertainty around the second wave in Victoria, an increase in the unemployment in SA to 8.8 per cent and low consumer confidence, a wide range of businesses are still struggling to trade at capacity.
“Instead of seeing businesses drop off the JobKeeper cliff come September, the South Australian Business Chamber prefers a step-down approach where heavily impacted businesses continue to be supported. This should also be coupled with an FBT exemption on meal and entertainment expenses.
“The South Australian Business Chamber is also against a specific State or Territory JobKeeper policy and argues the scheme should continue no matter where businesses are located.”
