JobKeeper could send firms broke

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 14-Jul-20

The federal government will announce details of its revised JobKeeper wage subsidy scheme on 23 July, when it will also release an economic update. Council of Small Business Organisations Australia CEO Peter Strong says JobKeeper has enabled employers to retain staff. However, he warns that many businesses will need to think carefully about signing up for the revised scheme, as employees on JobKeeper are accruing entitlements such as annual leave that will have to be paid out if they are laid off. These will have to be paid from cash reserves if the company is not making a profit.


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