FIRMS DEFEND SUBSIDY STANCE

CORPORATE Australia is digging in over repaying billions of dollars in JobKeeper despite booking profits and paying dividends.

Many top executives have argued the safety net, which also has the effect of lowering wage bills, was crucial as the pandemic hit while shareholders are relying on dividends in the face of low interest rates.

An analysis of company reports reveals that 56 of the largest listed companies received more than $1.5bn of taxpayer money in the first half of the financial year, with a majority paying dividends to the tune of $1.39bn. These dividends were paid by 39 high-profile companies who between them received $531m in JobKeeper while booking $2.57bn in profits.

Some $996.7m was paid to loss-making companies that did not declare an interim dividend such as Qantas and Crown Resorts.

Car dealer group Eagers Automotive received $129.6m in JobKeeper, covering 14 per cent of its payroll, between March and

September. This week it declared a full-year profit of $156.2m. Eagers, who also announced Keith Thornton would be the new CEO, elected to pay out $65m in dividends. “It’s important to note we halved our financial year 2019 final dividend and elected not to pay a 2020 half-year dividend,” said a spokesman. “We stopped receiving JobKeeper in September, yet there have been several instances where we have continued to pay our employees despite them not being able to work due to government shutdowns.”