Hundreds of jobs at risk

ATO closure would create $53m economic hole

THE potential closure of the Australian Taxation Office in Geelong could bust a $53m, 200-job hole in the local economy, modelling has revealed.

Analysis from consultant REMPLAN, which handles economic appraisals for councils across Australia, says that the 120 potential ATO job losses could result in 96 more jobs being stripped from the broader economy in supply chain and hospitality sectors.

Committee for Geelong chief executive Jennifer Cromarty called on the ATO to defer its decision on the future of the Geelong office, planned to be finalised next month, beyond the middle of next year.

“In terms of gross output, related to capital, labour and intermediate inputs, the direct, supply chain and consumption effects are estimated to cost our local economy $53.6m,” Ms Cromarty said.

“(According to REMPLAN data) the loss of 120 jobs at the ATO could lead to another 96 job losses in the local economy. Job losses would be felt in the supply-chain (31) and in consumption-related roles such as retail and hospitality (65).

“Lost wages could reach up to $19.7m and local valueadded economic effects would reduce by as much as $30m.

“Half the value-added impacts would be lost as a direct result of the office closure and the other half due to flow-on impacts.

“The ATO and key federal government decision-makers should defer its decision regarding the ATO Geelong office closure and take time to carefully explore options and consult deeply before making a final decision.”

The Community and Public Sector Union has predicted a potential ATO Geelong office closure would result in $9m in wages being ripped from the local economy. A spokesman for the union said it had met with the Treasury Department three times since news of the potential closure surfaced earlier this year.

“The CPSU has written to the ATO Commissioner about this matter, and also made a submission to the department about this matter,’’ he said. “We are expecting a decision at the end of the month.”

An ATO spokesman said the organisation was not planning to defer its decision on the future of the Geelong office beyond next month, and would not comment on the estimated economic impact of it.

REMPLAN modelling is developed by analysing the “latest” Australian Bureau of Statistics data to estimate losses to employment, wages and salaries, imports, exports and gross regional product.

A CPSU petition to keep ATO jobs in Geelong has had more than 1000 signatures.