Necessary tweeks to Jobkeeper 2 says IPA

WHILE the Government should be commended for the introduction of JobKeeper at such a critical time for Australia’s businesses and individuals, too many changes to its next phase will erode community confidence, warns the Institute of Public Accountants (IPA). 

“JobKeeper has achieved many of its intended outcomes including not adding to the jobless queues,” IPA chief executive officer, Andrew Conway said.

“It is understandable that there were some design flaws considering the short time given for its implementation. 

“However, there were also benefits and we need to ensure that we don’t throw the baby out with the bathwater; we should recognise what good has been achieved by this initiative.

“Notwithstanding making changes to JobKeeper at this point in the cycle, we would like to see the following:

• The way a new business, that commenced operations from January 1, 2020, reports on GST should not determine whether they are in or out of the JobKeeper scheme.
• Review of the declining turnover eligibility test.  JobKeeper 2.0 needs to be better targeted to support those who continue to suffer during this pandemic.
• Review the flat payment structure of JobKeeper and whether it should be a proportional payment. 

“All of the stimulus initiatives around Australia to date have not distinguished between viable and non-viable businesses.  The challenge for the government is to make this distinction to ensure JobKeeper 2.0 achieves the desired outcomes.

“There is also an opportunity for the government to provide direct assistance to adversely affected industries beyond September,” Mr Conway said..

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 38,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. 

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