Keeper subsidy still in demand

THOUSANDS of cashstrapped businesses rushed to sign up to JobKeeper last month despite the payments being scaled back.

About 15,000 businesses nationally signed up to the federal government’s scheme in October, with Victorians the most in need — about 270 businesses a day sought help there.

The new Australian Taxation Office data showed that from September 30 to October 30 about 8110 Victorian businesses reached out for urgent financial help, followed by NSW at 3300, Queensland at 1830, WA at 892, SA at 575, Tasmania at 146, ACT at 87 and NT at 46.

Employers need to satisfy a decline- in- turnover test to qualify for JobKeeper payments, and from the end of September payments are in two tiers.

They fell from a flat payment of $ 1500 per fortnight to $ 1200 for full- time employees.

For those working less than 20 hours per week payments dropped to $ 750 per fortnight.

Federal Treasurer Josh Frydenberg said the scheme provided critical financial support for Australian businesses during the COVID- 19 pandemic.

“The temporary JobKeeper payment continues to be an important economic lifeline for hundreds of thousands of businesses across the country,” he said.

“By design, JobKeeper goes to the areas and the sectors of the economy that need it most.”

JobKeeper has helped keep more than 900,000 businesses and 3.5 million Australians afloat during the pandemic.

It’s expected by the end of December about 60 per cent of JobKeeper recipients will be from Victoria.

The Council of Small Business Organisations Australia’s chief executive Peter Strong said many small operators were still struggling.

“There will be some businesses that won’t survive,” he said.

“It’s hard to imagine if you haven’t had a decent income for six or seven months how do you come out of it.”

JobKeeper is estimated to cost $ 101bn and so far more than $ 69bn has been paid out.

Payments are being scaled back again in January and the scheme is due to end on March 28, 2021.