Sunday, 19 July 2020
The South Australian Business Chamber has welcomed the Federal Government’s decision to extend the JobKeeper scheme until the end of March 2021.
However, the peak independent business body in South Australia has called for further support mechanisms to be introduced to help those businesses that continue to be crippled by international travel restrictions.
Today’s announcement by the Prime Minister follows a submission by the South Australian Business Chamber to the Federal Treasurer last week, pleading for a “step-down” approach to the wage subsidy.
The South Australian Business Chamber had requested those businesses that continue to be materially impacted by COVID-19, such as those restricted by ongoing bans on international travel, continue to receive JobKeeper at the current $1,500 full rate.
The South Australian Business Chamber CEO, Martin Haese, welcomed the Federal Government’s $16 billion package today that will see financial support continue for business owners.
“The South Australian Business Chamber commends the Federal Government on the announcement also agreeing that JobKeeper cannot continue indefinitely, particularly for casual workers who are effectively receiving a pay rise on the subsidy,” said Mr Haese.
“The South Australian Business Chamber called for a step-down approach, not a stop, so we are pleased to see JobKeeper will continue at $1,200 per employee until the end of the year and $1,000 for the first three months of next year. This is a good outcome for businesses.
“Today’s announcement will provide businesses with certainty in an ever-changing environment and protect further job losses in South Australia.
“The South Australian Business Chamber welcomes the introduction of a second tier for those employees who work less than 20 hours a week, which will better align with their fortnightly earnings.
“Further, the South Australian Business Chamber is pleased to see that there will be no geographical differentiation to the scheme and all South Australian businesses who can demonstrate their turnover remains down by 30 per cent pre-COVID levels in this year’s June and September quarters will be eligible for the wage subsidy.
“What we are concerned about is 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 70 per cent or more and that won’t be changing any time soon.
“The South Australian Business Chamber argues these businesses should receive additional financial support measures over and above the JobKeeper payment.”
