I’m here with the COVID-19 business continuity update for Monday 11th May.
It’s a quick update today. In today’s press conference, Prime Minister Scott Morrison was asked if JobKeeper would be wound back.
In true politician style he didn’t provide a definitive answer. The answer he did provide was that the Government’s goal is get money in the hands of businesses so that they can continue to employ people and turn the economy around.
He said, “The thing that matters is getting Australian businesses back open, because when that happens, there will be no need for those levels of income support. Success for our economy is when we’re able to get ourselves out of the situation which requires such enormous taxpayer support.”
The JobKeeper legislation was passed by parliament with six months of support built in so we need to continue to model our businesses with that timeframe in mind.
While it is possible that the legislation could be changed to scale back the JobKeeper scheme, it’s exceedingly uncommon for a Government to undo their own legislation. And with the government’s focus on growing the economy, they would need to have seen such significant improvement in business performance and employment that JobKeeper would no longer be necessary for businesses that have returned to self-sustaining levels.
It was great to hear from Dan Andrews today about the first step in the reopening of the Victorian economy, we’ll review this tomorrow.
Here’s the transcript from the press conference of PM’s response to questions about JobKeeper:
And here’s the link to the source:
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching