Business SA welcomes today’s Federal Government $130 billion Job Keeper wage subsidy package in response to the COVID-19 economic crisis.
The peak industry body says the package would provide relief to businesses and workers who will be feeling financial pain for many months to come.
The wage subsidy will see eligible employers receive a $1500 payment per fortnight for each employee they keep on over the next six months.
Business SA, CEO, Martin Haese acknowledged while some employees may still be worse off, this significant and unprecedented support package was a big step forward in securing South Australian jobs through the COVID-19 economic storm.
“We welcome the Federal Government’s $130 billion wage subsidy scheme which will undoubtedly provide some comfort for those businesses and industries hit hardest by the COVID-19 pandemic,” Mr Haese said.
“The wage subsidy will mean we have less people out of the workforce. By keeping employees on the books, on the payroll, the economy will be able to bounce back quicker when this crisis is over.
“It also means that employees will be able to maintain continuity of service, which will protect their leave entitlements, while employers will not have to pay out redundancies when they have little or no cash available to do so.
“The issue will be around accessing the scheme. There is already a great deal of confusion in the business community from sole traders through to larger companies around how to access government support.
“We call on the Federal Government to make this as simple and easy as possible, cut the red tape and let’s get the money in the bank for these businesses crippled by coronavirus as soon as possible.”
The wage subsidy scheme will be rolled out to eligible employers who have suffered a loss of turnover of at least 30 per cent from 1 May 2020 and backdated to today via the ATO.
Employees stood down since March 1 will be eligible.
While welcoming the wage subsidy package today, Business SA says businesses are still waiting in anticipation for support from the Federal Government on commercial rent relief.
“Businesses are experiencing their worst nightmares right now and are crying out for a rent holiday,” Mr Haese said.
“Landlords can’t shoulder all of the burden, they need help.
“While we welcome the announcement of a moratorium on evictions, we await further support in the space as we know it is desperately needed.
“Commercial rent relief needs to be a shared outcome involving governments, landlords and in some instances, tenants.”
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