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Scott Morrison says post-JobKeeper coronavirus support to help Victorian businesses, tourism

July 19th, 2020 | | backpacker

Businesses in Victoria and in the tourism industry are likely to benefit from extended government support set to be announced next week, Prime Minister Scott Morrison says.

Key points:

  • Further income support targeted to help businesses are set to be announced next week
  • Scott Morrison says a “targeted, national program” will be of particular benefit to businesses in Victoria
  • Mr Morrison says underemployment will likely be an issue for some time

Flagging extended demand-driven help for businesses doing it tough, Mr Morrison indicated the Government has abandoned a “snap back” approach to the economy after the September expiry of JobKeeper.

“I don’t think anyone has a crystal ball here when it relates to the pandemic. Circumstances change and the Government has changed with those,” he said.

The ABC understands that support will be offered to struggling businesses, with a sliding scale of payment depending on workers’ employment status.

The Government will unveil its changes on Thursday.

Mr Morrison said the measures were still being tweaked to respond to the ongoing crisis in Victoria.

“I’ve made it clear now for some time that there’d be a further phase of income support that would extend beyond where we are with JobKeeper and JobSeeker, we’ll have more to say about that next week,” he said.

“It’ll be targeted, it’ll be a national program, it’ll address those businesses in most need wherever they are, but I would expect that would particularly be the case because of what’s occurred in Victoria and around Melbourne.

“Also, those parts of the country like North Queensland and parts of the Gold Coast and others which have also been very affected by the downturn in international tourism.”

The $70 billion JobKeeper payment supplements employee’s wages to the tune of $1,500 per fortnight.

Being in work ‘comes at a premium’

Barista warms milk at industrial coffee machine
JobKeeper has kept businesses afloat, but will end in September.(Unsplash.com)

Mr Morrison said amid lockdowns in Melbourne and its surrounds, job figures released yesterday offered a glimmer of positive news, with the estimated effective unemployment rate falling from well over 13 per cent to 11.3 per cent, as more people entered the workforce.

“There’s 210,000 jobs that were created in June, that came back into the economy, that’s the biggest number ever,” he said.

However, the headline unemployment rate increased because of a net rise in the number of people looking for work.

The increase in jobs was mostly due to an increase in part-time positions, rather than those offering full-time hours.

Mr Morrison warned Australian workers hungry for more hours they would have to endure underemployment for some time, as having a job at the moment “comes at a premium”.

“In this economy, in this COVID-19 recession, being in a job comes at a premium,” he said.

“I welcome the fact that businesses are choosing to keep more people on and sharing those hours around a bit, and that’s going to be necessary into the future.”

Source: ABC

Sourced by Mike Barrow