Government eyes ending JobKeeper for businesses that recover before September
The Federal Government is considering changes to JobKeeper that would result in businesses which recovered quickly losing their $1500 a fortnight wage supplements before the scheme expires.
The Treasury is looking at the new scenarios based on the assumption the economy will recover faster than first believed.
"If anyone had told you at the end of March that we would be where we are at the beginning of June in terms of the economic context, I think people would not have believed you necessarily,'' Finance Minister Mathias Cormann said.
"People would have thought you were too optimistic. We are working to ensure that we get ourselves in the strongest possible position over the next few months."
While the country had technically entered in recession after the March quarter contracted by 0.3 per cent, Treasurer Josh Frydenberg has accepted the June quarter will not be as bad as expected.
A Treasury review of JobKeeper this month will look at the 1.7 million workers receiving more under the flat payment than they did before, and whether businesses should receive the subsidy for the entire six months of the program if they no longer needed it.
Any decision will be announced as part of a budget update on July 23.
Sheridan Randall, 5th June 2020
