Job Keeper and Tax Cuts

A bit harsh. You have to consider the situation at the time with the jobkeeper payments and the accompanying laws introduced almost overnight. I'd be confident that the next tranche will be more selective but still unlikely to remove every little anomaly.

 

It’s biggest failing and oversight was the causal workforce.

Unluckily for us my wife worked casually in childcare but had left to have a baby (well not unlucky but you see my drift).

Anyway thousands like her do small shifts a week, some as Low as 6 hours a week earning a couple of hundred dollars.

These type of people are now being paid $750.
That’s like your boss saying “you have done well so we are going to give you a 700% pay rise”.

 

Yes those payments are really bad, inexcusable to be honest. But the big companies profiteering from it is truly astonishing to me.

Luckily for the Libral party - the Labour party don't have a lot between the ears. The Libs are going absolutely off about Andrews and the security guards while no one mentions the biggest payment stuff ups I have ever seen and probably in history.

If this shoe was on the other foot, Scomo would have them begging for mercy.

 

What about the small businesses that have been saved from closure because of it?

 

That is fantastic - that is what it was meant for, I have mentioned this many times in previous posts. But this is not the point some are trying to make about jobkeeper.

 

Oh it works in a way. I went to buy a takeaway coffee today, the place had no customers (naturally). I was there for around 10 minutes waiting for coffee and not one person came in (so generally maybe they're doing $50-100 revenue per hour?). It had around 5 floor staff + 3 in the kitchen. Imagine on award wages that's $170/hour of wages + super + payroll. All paid for by Govt (taxpayers of course)

 

Jobkeeper officially extended! WOOOOOOO!!!!!!

JobKeeper extension | Treasury.gov.au

 

Jobseeker looks unchanged? bit over $1000 a fortnight per person, $550 higher than precovid.

 

I have some good news, my daughter was made redundant 3 months ago, went on jobseeker during this time.

She actually got offered a job today, full time. She in Melbourne...delighted.

 

Great to hear

A very odd time to start a new job though!

 

Not sure why its odd??

 

A family member had just landed her first part time job earlier this year, was working a few hours, 1 day a week for 5 weeks making $100 pw. Then got on jobkeeper 16yo on $1500 pf. To say she was excited is an understatement. I was happy for her, but It just doesn't make sense.

 

These payrises to casuals will be paid off by taxes over the next 10 years.

Either we pay more tax or less projects are used for spending. Either way, it's going to hurt. None of these pollies seem good in a crisis.

 

I mean it will be very strange circumstances depending on the job. We had some people start at my work at the start of COVID and still haven’t actually met them - they are just people off it the cloud somewhere

 

My brother just got stood down to job keeper but all a bit suss as been having issues with his employer for a while. Anyway me being in recruitment and having lots of friends in recruitment he had a new job within 1 week paying 40k minimum more.

To say he is beyond happy is an understatement. As I keep saying this thing is real and the economic pain will be felt for decades. But for a lot it’s also a new opportunity and with all my heart think the world looks a lot better on the other side.

 

Just on my last post I went in to my local cafe and had a very long chat to the owner and now friend. He told me he just saw his accountant and it’s not good. He is losing minimum $600 a week to stay operational.

As of next week he is dropping food and just doing coffee and drinks in the hope of surviving.

It broke my heart but then at the same time he warmed it. He said I’m hurting and I’ll never recover the losses but when it’s all over he said he thinks there will be more opportunity. Rents will be cheaper, he has learned to operate more efficiently, source better and so on.

To see optimism from someone who is smack bang in the fire line was heart warming.

So just a thought to my PC family. If your one of the lucky ones doing well. Maybe this weekend if you can, buy a local coffee. It won’t seem like much but rest assured you will definitely be making an impact.

 

Jobkepper eligibility is based on revenue and not profit.

I assume revenue was the chosen metric as its immediately recognizable and the stimulus was needed asap rather than waiting until the end of the financial year.

There are flaws with it, but remember this was a stimulus package put together in a couple of weeks.
Governments could have spent a few years fine tuning it and had all the specifics worked out but that would have defeated the purpose.

Also remeber, it's a fiscal stimulus package disguised as a welfare package so it's not as important to have it directed with the same level of precision.

 

Ok we know that. Just proves my point even further though. Lets look at a big building company that builds 3-10million dollar houses. Company has many offshoots ie, cabinetry - swimming pools - scaffolding - concreteing up to 50 employees on the books. This company as a whole would easily profit 5million per year.
So if they take a month holiday in what was it March?? and then get a few payments held back those months all of a sudden they have lost 30% revenue in that month.
They come back from holiday and have 50 employees on jobkeeper for next 6 months and have not lost a cent in there normal revenue.
This equals approx $1 million new REVENUE for the company.

Jobkeeper was not meant for these companies but because not much thought went into jobkeeper the high end businesses with the best accountants out there just licked there lips

 

While the scenario you paint is entirely possible, I'm sure that in the main the objectives were mostly met.

The billions had to make it's way out somehow, and if a few took advantage then it doesnt really matter as the issue was never about welfare in the first place.

I would also expect that it would be the smaller end of town gaming the system but they would be more vulnerable and probably need it anyway... hence the 30% and 50% tests.

I think most high end businesses with the best accountants would also be the more difficult to maniulate revenue figures, I work for ASX200 company receiving jobkeeper payments and it was offices full of HR types and not accountants dealing with it.

If the occasional (I would say rare) business takes advantage to the tune of $1m, then it's not even going be a rounding error in the big scheme of the programme anyway.

Loopholes exist no doubt, but how would you suggest getting billions of dollars out in a matter of weeks while ensuring not one ineligible person/business received a cent?

 

It's more than possible - i know it's happening costing taxpayers millions.
I don't feel so bad when the smaller end of town might get an advantage but the higher end of town contributing to the economic demise does not sit well with me, because they don't need it, just greedy and bored and smarter than our government. Having a laugh/taking the ****.

To resolve the issue - I just think a few more checks needed. I.e a better look at the jobs you have on the go and what there worth - not which month you get paid for them.