Big shock coming when financial bailout ends
THE JobKeeper payments are flowing through to about three million employees propped up by borrowed money taxpayers must repay.
Latest figures show more than 955,200 businesses have enrolled in the scheme and about 811,600 applications have gone through the steps enabling them to receive payments.
But this support for many businesses is a short-term lifeline and one that has an end date — at this stage September 27.
Then the financial taps turn off and this is when things will get real.
Which workers will still be employed and which let go?
These financial lifelines come at a cost and they ultimately are always worn by the taxpayer.
As businesses across the nation slowly start to come back to life again, it is vital the economy gets itself off life support and Australians get back to work and start spending.
While the $130 billion JobKeeper calculation was revised down to $70 billion — a win for the taxpayer because it is less debt to be paid back — we still have a long road ahead to pay this money back.
The JobKeeper is a temporary subsidy for businesses impacted by COVID-19 and eligible employers, sole traders and other entities can receive $1500 per eligible employee per fortnight.
But do not forget, this is a financial cushion, and every person in this country who pays tax wears this cost.
As Prime Minister Scott Morrison said in one of his addresses to the nation: “Governments must live within their means so we don’t impose impossible debt on future generations.”
That is on the money. We cannot continue to cripple the taxpayer at every opportunity.
In recent days there have been ridiculous calls by the Public Health Association of Aus Australia and the Australian Cou Council of Social Service for paid pandemic leave — again funded by the taxpayer.
But where do these taxpayer-funded subsidies stop? Has not the taxpayer been hit hard enough at the moment?
Taxing the hardworking Aussie to death is not beneficial for anyone.
And with expectations the unemployment rate will rise to 10 per cent, things are certainly looking grim.
What remains a concern is when these government subsidies end, what will happen?
Free childcare stops, mortgage repayment holidays end, we can no long dip into our superannuation and our JobKeeper and JobSeeker payments either finish or are wound back.
Once you starting giving handouts it is very difficult to stop them without causing uproar.
As the nation starts to navigate its way out of this pandemic, we have to remember these handouts and financial subsidies cannot continue forever.
Sophie Elsworth is the personal finance writer at News Corp.