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Small-business owners are beginning to worry about the end of JobKeeper in seven weeks, as the government continues to rule out an extension of the wage subsidy program.
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Post-JobKeeper jitters hitting small-business owners: Survey
11 February 2021
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The January Sensis Business Index has found that 39 per cent of small businesses are now saying that the loss of JobKeeper will have a major impact on their viability, up from 29 per cent in November and 31 per cent in December.
The survey of 1,000 small-business owners found that a further 51 per cent believed it would have a moderate impact, with just one in 10 saying it would make no difference to their business.
The JobKeeper program will come to its scheduled end on 28 March after first being introduced at its $1,500 per fortnight rate in late March 2020, before tapering down to its current $1,000 per fortnight rate for full-time workers and $650 per fortnight rate for others.
“We can see over just three months that the attitude of business owners has changed,” said Sensis chief executive John Allan.
“Despite a growing chorus of voices asking the federal government to keep JobKeeper in place for certain industries, it doesn’t look like the government will change its mind and that will put a lot of these businesses under pressure to survive.”
Treasurer Josh Frydenberg has repeatedly rejected calls for the wage subsidy program to be extended, despite certain industries, including the tourism and hospitality sectors, continuing to be significantly impacted.
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“Based on what we know today, there should be no expectation that JobKeeper will extend beyond the end of March. It was always a temporary program,” Mr Frydenberg said late last month.
“More than $80 billion is already out the door, and it’s helped to support more than 3.5 million Australians.”
Reserve Bank of Australia governor Philip Lowe had also recently backed the government’s decision to wind down the JobKeeper program as the economy continues on its path to recovery.
Dr Lowe said that job losses stemming from the withdrawal of JobKeeper was to be expected but suggested that such unemployment “blips” would only last for a month or two.
“Am I disappointed the government is stopping the JobKeeper program? No. The government made it clear this was a temporary program,” Dr Lowe said.
“Given the recovery of the economy, I can understand why the government wants to stop that program.
“When we talk to businesses, our sense is that job creation is going to continue. I’m hoping that will be enough to offset the job losses from the ending of the JobKeeper program.”
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