The Morrison government has “no excuse” not to extend jobkeeper wage subsidies to foreign workers and shorter-term casuals as the program is not set to reach its $130bn price tag, Sally McManus has said.
The treasurer, Josh Frydenberg, has released new figures revealing that 728,640 organisations have enrolled in jobkeeper, covering around 4.7m workers, as the Australian Taxation Office begins to reimburse employers making the $1,500 fortnightly payment.
But while Frydenberg trumpeted the “economic lifeline to millions of Australians”, McManus accused the government of falling short of the program’s aim to provide income support to up to 6m people.
The Australian Council of Trade Unions secretary told Guardian Australia “it looks like there will be an underspend of the $130bn, so there is no excuse not to extend it to the arts and entertainment sector” – which has largely missed out due to the requirement casual staff must have 12 months’ service with the same employer – and “visa workers who are left with absolutely nothing” because they are also ineligible for jobkseeker unemployment benefits.
“There is now no argument in terms of cost,” McManus said.
On Friday Scott Morrison signalled that the government will simply book the saving rather than expand eligibility if jobkeeper fell short of its 6m capacity.
Morrison told reporters there were “many calls on the budget in relation to Covid-19” and noted that many employees ineligible for wage subsidies would qualify instead for the $1,100 fortnightly jobseeker benefit.
Morrison said the commonwealth would be “footing a very big bill” for welfare measures and there were “no plans” to change the parameters of jobkeeper apart from “administrative changes”.
McManus said the comments were disappointing, because the jobkeeper program should “start from the principle that everyone who has lost their job due to coronavirus should be entitled to support”.
McManus argued the government should expand eligibility “and not use artificial and unfair restrictions on who gets it and who doesn’t” to keep costs down.
“If you’re out of a job, you’re out of a job. It’s immoral that some working people in Australia, such as visa-holders, get absolutely nothing.”
The ATO has extended the deadline for reimbursement of jobkeeper, allowing those who paid upfront throughout April to claim the $1,500 payment per fortnight per work, backdated to 30 March.
Employers can also join the program at any time, for the remainder of the six-month subsidy.
The Council of Small Business Organisations Australia, Peter Strong, said he was “not surprised” the program was under-subscribed.
Strong said the scheme was “incredibly complicated”, many small business employers struggled to get bridging finance to pay their higher-than-usual wages bill through April, while others had to concentrate on their private lives including care of elderly relatives and home schooling children.
So far, 40% of the employers that enrolled have been sole traders, 39% are companies, 15% are trusts and 6% are partnerships. Most claimants are in New South Wales (252,207), Victoria (197,987) and Queensland (141,972).
Frydenberg said the payment “is giving working Australians their best chance of keeping their job and keeping them connected to their employers so business can bounce back in the recovery phase”.
“Our scheme is uniquely Australian, with every eligible employee receiving the same wage subsidy,” he said.
“The government will continue to do what it takes to ensure that Australia bounces back stronger.”
In a further jobkeeper stoush, the Transport Workers Union has called on the government to waive an exclusion that prevents companies owned by foreign governments from receiving the wage subsidy.
The TWU is concerned that Dnata, owned by the Emirates Group and which carries out 90% of catering needs of airlines in Australia, has told its 5,500 workers in Australia that they will not receive jobkeeper.
Michael Kaine, the TWU national secretary said: “This is a devastating blow for thousands of workers in Australia who have been assuming up to now that their jobs were secure and their income was certain because of the jobkeeper payment.”
