Necessary tweaks needed for JobKeeper 2.0: IPA

Institute-of-Public-Accountants/IPA/JobKeeper/andrew-conway/

21 July 2020
| By Chris Dastoor |
image
image
expand image

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 IPA recommended JobKeeper be changed to address the following:

  • 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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 1 day ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND