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Businesses shun JobKeeper due to ineligibility

Maja Garaca Djurdjevic
Maja Garaca Djurdjevic
05 May 2020 1 minute readShare
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A majority of businesses that do not intend to register for JobKeeper have cited ineligibility as the main reason for their decision, latest figures from the ABS have revealed.

The third Australian Bureau of Statistics (ABS) survey on Business Impacts of COVID-19 has revealed that 61 per cent of the 2,014 surveyed businesses had registered or intended to register for the JobKeeper payment scheme.

Of those businesses registered or intending to register, 73 per cent expected more than half of their employees to the eligible for the scheme.

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However, of those that are holding back, a majority believe they are ineligible.

“Of the businesses that did not intend to register for the JobKeeper payment scheme, 55 per cent reported that it was because the business was not eligible,” said ABS head of industry statistics John Shepherd.

 

He noted that less than one in 10 (7 per cent) reported not registering for JobKeeper due to insufficient cash flow to continue paying staff before payments commence.

Last week, the Prime Minister revealed that 650,000 businesses have registered for the $1,500 a fortnight wage subsidy scheme.

Over 900,000 businesses had expressed interest in the scheme in the weeks before enrolments began.

Recently, Treasury Deputy Secretary Jenny Wilkinson said that no further “significant” changes will be made to the JobKeeper eligibility criteria.

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Late on Friday, the Treasurer published details of the anticipated modified decline in turnover test for employer entities, including minor amendments to the employee nomination criteria.

As per the new rules, employers must provide their employees with an employee nomination notice within seven days of enrolling in JobKeeper.

Businesses shun JobKeeper due to ineligibility
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Maja Garaca Djurdjevic
Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of My Business. 

Maja has a decade-long career in journalism across finance, business and politics. Now a well-versed reporter in the SME and accounting arena, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies and enabling citizens to influence decision-making.

You can email Maja on [email protected] 

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