THE extension of the JobKeeper wage subsidy program will provide a further “airbag” for the Australian economy, according to the Property Investment Professionals of Australia (PIPA).

The Federal Government has announced that the JobKeeper program will be extended until the end of March next year, but with reduced fortnightly payments and stricter eligibility criteria.

PIPA chairman Peter Koulizos said the wage subsidy extension would help to soften the economic blow from the pandemic.

“We need to accept that the economic impact of COVID19 is going to be significant,” Mr Koulizos said.

“However, if the various stimulus initiatives and financial support packages hadn’t been implemented, then the fallout would have been severe. In essence, these measures are providing an economic airbag to help slow down, and soften, the impact that we all know is coming.”

Mr Koulizos said a similar strategy of stimulus initiatives was employed during the GFC that ultimately resulted in the Australian economy avoiding a recession.

“Those stimulus packages were vital in keeping people employed during that protracted global downturn,” he said.

“This time, it’s clear we won’t be able to avoid a recession, but these programs will help to prevent our economy languishing for the long-term.”

The tightening of JobKeeper eligibility criteria announced today would also mean that the wage subsidy would be targeted to the people who really need it, Mr Koulizos said.

“The extension, as well as the continuance of mortgage repayment pauses, will benefit homeowners, landlords and tenants who continue to need financial support over coming months,” he said.

Mr Koulizos said the wage subsidy extension also provided some much-needed preparation time for people whose employment was looking tenuous.

“The JobKeeper extension gives people more time to organise alternatives, such as retraining or studying, if their current job is not secure,” he said.

“It also gives people time to breathe and prepare – rather than starting to panic about how to financially survive post-September.”

About PIPA

Property Investment Professionals of Australia (PIPA) is a not-for-profit association established by industry practitioners with the objective of representing and raising the professional standards of all operators involved within property investment.

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THE INQUIRY into food pricing and food security in remote Indigenous communities will hold further public hearings over two days this week.

Julian Leeser MP, Chair of the House of Representatives Indigenous Affairs Committee, said the Committee would hear from key stakeholders from the Northern Territory and New South Wales including Land councils, other Indigenous peak bodies and agencies, leading academics, the Northern Territory Government, and key industry players such as Woolworths and Metcash.

"The collective expertise among the witnesses who will appear is extensive, and I look forward to hearing the insights they will share," Mr Leeser said.

"It is very important that the committee gets a thorough understanding of the food pricing and food security issues that are affecting remote Aboriginal communities. We look forward to hearing from witnesses about what dynamics are involved and what can be done to improve the situation."

The hearings will be conducted via telephone and video links due to social distancing requirements relating to COVID-19. Full programs are available at the inquiry website.

Public hearing details

Date: Thursday 23 July
Time: 9am to 5pm AEST
Location: Via conference call

Date: Friday 24 July
Time: 9am to 2.20pm AEST
Location: Via conference call

An audio broadcast will be accessible at aph.gov.au/live

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A PARLIAMENTARY inquiry into the impact of COVID-19 on Australia’s defence, trade and international relations will turn its attention to public health at its next public hearing.

Senator David Fawcett, Chair of the Parliament’s Foreign Affairs, Defence and Trade Committee, said the pandemic had exposed problems in Australia’s pharmaceutical and medical equipment supply chains.

Senator Fawcett said,  “Although our health system is amongst the best in the world, it can’t function without reliable supplies of drugs and equipment, especially during severe public health events like the pandemic.”

Witnesses from Aspen Medical, an Australian-owned health services supplier, and the Public Health Association of Australia will give evidence on aspects of Australia’s healthcare response to the pandemic.

Full terms of reference for the inquiry are on the Committee website. Submissions can be made until 24 July 2020.

Public hearing details

Date: Thursday 23 July
Time: 3pm – 4.30 pm AEST 
Location: By teleconference

The hearings will be audio streamed live at aph.gov.au/live

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THE extension of the JobKeeper wage subsidy, along with its associated industrial relations flexibility, will help business owners make smart, fair decisions that will keep their doors open and staff employed, according to Employsure, Australia’s largest workplace relations advisor.

Prime Minister Scott Morrison has revealed that the Federal Government’s JobKeeper program will run at a reduced rate for another six months from the end of September, while JobSeeker will continue for at least another three.

"This extension of JobKeeper and the IR flexibility that comes with it, will give small business owners a sense of certainty to move forward and make smart employment decisions into 2021,” Employsure managing director Ed Mallett said.

"Our main advice to business owners right now is to fully understand the details of the amended scheme, its potential repercussions and to get professional advice on how to implement it across their business.

"Even more importantly, employers shouldn’t use it as a reason to bury their heads in the sand. Subsidy shouldn't be confused for sustainability, and if you need to make hard decisions about the viability of your business, don't delay the inevitable.”

The wage subsidy will initially be reduced to $1200 per fortnight (fulltime) and $750 (part time) from the end of September, and dropped again to $1000 per fortnight (fulltime) and $650 (part time) in January. Eligibility criteria will apply.

"Business owners need to be cautious about how this will work day-to-day,” Mr Mallett said.

“JobKeeper 2.0 will still need to go through Parliament to be legislated and that's where the real rules about this program will emerge.

"There will be the inevitable potholes that business owners will find frustrating. For example, the February before the pandemic is being used as a benchmark to assess ‘employee hours worked’. What if an employee was on leave in the February pre-COVID? Will seasonal businesses that operate off-peak in February be disadvantaged by not having enough financial support to get them through their peak season that occurs in December?

"These are all questions that get answered after-the-fact, leaving small business owners to navigate the confusion in the absence of clarity.

"JobKeeper has been successful and it is welcome news that it will continue, but it's not perfect and we can't pretend that JobKeeper 2.0 won't present pain points and frustrations for many business owners."

www.employsure.com.au

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