$272m JobKeeper sting

Labor concern at overpayments to businesses

TASMANIAN businesses that did not need emergency financial support amid the Covid-19 pandemic were paid a collective $272m in JobKeeper wage subsidy payments, Federal Labor says.

Analysis from the Parliamentary Budget Office has shown the amount of money paid to businesses that reported an increase in turnover compared to the previous 12month period. It reveals 3815 Tasmanian businesses fit that criteria between July and September last year, who were paid a combined $168m in JobKeeper during that quarter.

In total, Australian businesses that increased turnover when compared to the previous financial year claimed an estimated combined $19.7bn in JobKeeper.

“JobKeeper was meant to help battlers stay in work, but billions of dollars went to companies that didn’t need it,’’

Federal Labor’s shadow assistant minister for treasury and charities Andrew Leigh said.

“Labor wanted JobKeeper to succeed.

“But Scott Morrison used the program as a giveaway for firms whose revenues were rising rather than falling.

“The typical Australian household paid $2000 to firms with rising turnover. JobKeeper overpayment is the biggest waste of money in Australian history.” But Tasmanian Small Business Council chief executive Robert Mallett said most recipients desperately needed JobKeeper to stay afloat.

Mr Mallett said if businesses who weren’t eligible ended up claiming JobKeeper, that should be followed up.

“Yes, some businesses did well out of it because it is amazingly generous to cover your entire wages bill and you get to keep the takings,’’ he told the Mercury. “It was generous, but without that generosity, the Australian economy wouldn’t be in the strong shape that it is now.”

Federal Treasurer Josh Frydenberg has staunchly defended the JobKeeper scheme, which he has called one of the most successful economic support programs in Australian history.

Mr Frydenberg credits JobKeeper with saving more than 700,000 jobs and supporting small businesses, which he says were 97 per cent of the recipients.

The Australian Tax Office said it had stopped more than $274m of invalid claims with an estimated $767m, of future flow-on claims through payment reviews.

The ATO said it had identified about $470m of overpayments across the scheme, of which $194m had been recovered so far.