The stimulus initiatives to date have not distinguished between viable and non-viable business, and the government needs to make this distinction to ensure JobKeeper 2.0 is effective, according to the Institute of Public Accountants (IPA).
- The way a new business, that commenced operations from 1 January 2020, reports on goods and services tax (GST) should not determine whether they are in or out of the JobKeeper scheme;
- Review of the declining turnover eligibility test: JobKeeper 2.0 should be better targeted to support those who continue to suffer during this pandemic; and
- Review the flat payment structure of JobKeeper and whether it should be a proportional payment.
Andrew Conway, IPA chief executive, said JobKeeper had achieved many of its intended outcomes, particularly by not adding Australian workers onto JobSeeker.
“It is understandable that there were some design flaws considering the short time given for its implementation,” Conway said.
Although the Government should be commended for its initial introduction, Conway said too many changes would erode community confidence.
“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,” Conway said.
“There is also an opportunity for the Government to provide direct assistance to adversely affected industries beyond September.”