Job Keeper and Tax Cuts

Fair enough, but.... you only have a couple weeks to get it right and the cash out. Go.

I'll admit I was surprised that some people could end up with a payrise from the whole thing, but I keep reminding myself it was never really about helping the unfortunate everyday battler as it was getting billions of dollars through the economy.
Heck, I'm on JK myself and have spent more time travelling Australia the last few months than I have my entire life. I didnt need the assistance (although I'm not working), but it justified me going out and spending money with tourism and hospitality providors insteading of buckling down at home and watching my spending - and in that regard I am ideal recipient as far as the goverment are concerned - and enough people are doing he same who cares of a few businesses take advantage. The pros out weigh the cons I assume.

 

I care because this is borrowed money not free money.
I can't fathom how businesses are still trading with there employees on jobkeeper, everyone still working??? the general taxpayers are paying these companies staff while the companies just rake in profit.
The penny has to drop sooner or later

 

Fair enough sentiment, but you havnt really offered any sort of alternative policy that is fool proof and able to be implemented in a couple of weeks for an unprecedented event.

The idea is to keep business trading and paying employees rather than simply making employees redundant. I doubt many eligible businesses are truly 'raking in the profit' right now.
On balance I would say it is taxpayers that receive JK who are benefiting benefiting, rather than businesses rampantly ripping off the system.

 

This is correct but if the businesses in question have not stopped working than there employees were never going to be made redundant, and yet they are on JK. One of these businesses laughed and said to me the other day - I know have the Government by the you no whats!! In NSW the building industry is going very very well and never even closed down during any lockdown as they are an essential service.

 

I was wondering what type of auditing etc might follow JK paymemts but I doubt there will be any.

I have no doubt the programme has saved a lot of jobs and businesses, but as much as the situation you highlight is frustrating I doubt its collectively any worse than regular benefit fraud.

My hat goes off the the government in disguising the entire thing as a labour-esk welfare package when its clearly anything but. In anycase, I am a beneficiary of it and doing my part to support local tourism and pubs.

 

It is really good, just not enough thought went into it, too many MASSIVE loopholes if you can call them that.
What I have highlighted is not even fraud because the businesses have not done anything wrong - It's just not enough thought went into it and allowed our economy to lose millions right at a time we can least afford it. If Anthony Albo done something this bad, Scomo would of destroyed him over it.

 

To more support @Property Baron comments. I know about 10 people on job keeper. 3 of them truly need it and are in a worse of position. The other 7 though don’t need it and are in a better position because of it. I also have 2 mates who deliberately manipulated the system all legally to be much better off.

im not saying it’s a complete failure because I know without it many small businesses like my local cafe would have gone under. I do however believe even in the very small window they could have and should have done better.

 

I haven't looked at the revised scheme in any great detail, does it improve the situation you describe or is it very similar only paying out less money?

 

Like yourself I haven’t looked at it in great detail but the parts I have read definitely sounds like most of the issues will be resolved.

I know @Property Baron gave some examples of how big business could and may still be able to manipulate it. I think most of the damage though was being caused by casuals and part timers getting huge pay rises.

I know of someone who got a 10* pay rise a WEEK. I know of someone else whose husband earns 500k a year and she was still working earning 650 a week and then got an extra $100 a week from job keeper.

These stories are endless and I do believe that has been one of the major focuses of the new update.

 

I'll add to this and say that without Jobkeeper, have a think about the true unemployment numbers we would have, we could be at 10 or 12% by now, how do you think the economy or share market would look like if that was the case?

 

its not over yet by a long shot.

Melb will be crushed with ongoing lockdowns and many business‘ will just not be able to come back from this, more job losses

We have no cases in WA, Perth and its been a while since we got out of lockdown, yet restaurants still only at 50% capacity.

jobkeeper is required but there will be an expiry date, and when its done we will see the full impact

 

I have not heard a single person say that there should never have been job keeper???

 

I have never forgotten this hence the point I keep making. Do you think paying millionairs and there staff for 6 month is putting money back into the economy?
And don't forget the millionairs I have been talking about have lost no work at all, staff doing more hours then ever. These guys have so much work backed up they can't take any more on and yet the greedys buggers have there staff on Jobkeeper because of the way the system was put together.

 

I was speaking to my Dad who was telling me that any government handout is based on a formula that actually only equates to a much smaller percentage than the actual figure.

By that Say someone is given $750 a week then by the time they are taxed on that, they spend that and pay GST for a product that was manufactured by a company that pays tax on the selling if the product who may import parts that are taxed on and so on and so on.

Is anyone familiar with this and know the true figure? And does the government use this figure in its deficit forecasting?

 

$750 - $81 (income tax) = $669

Assuming $669 is spent on GST items then $66.90 GST

The GST companies receive offsets the GST they pay.

So ~$150 back in tax revenue, ~$600 into the economy.

Plucking numbers out of the air, but say the companies make 20% profit and pay 30% business tax rate.

That would be $120 * 0.3 = $40

Total, $150 + $40 = ~$190 or ~25.3% returned.

 

Surely they won't bring forward the final round of tax cuts aimed at the highest earners (2024)? That will be a gift to Labor politically.

The issue with the money saved by that cohort (who likely already use structuring to mitigate tax) is they will apply the proceeds to debt reduction or investing, rather than putting the money back into quick circulation via consumption.

 

So JobKeeper 2 stops if your revenues recover in June quarter? But if you're in Melb and you're locked down again, your revenues will dive in Sep quarter. How does that work.........................

 

They have no idea - job bungle is a joke

 

Blardy Frydenberg is in my electorate. Should send him a letter as a local. Most businesses going to nosedive in Melb in Sep qtr again.