Travel and tourism organisations have greeted with relief the government decision to extend the JobKeeper wage subsidy for another six months, albeit at a reduced rate, and continue the coronavirus-inflated JobSeeker payment for another three months after September.
The JobKeeper wage subsidy will be cut from $1500 to $1200 a fortnight after 28 September 2020 (with another fall in 2021) and JobSeeker will pay $800 a fortnight after September.
JobKeeper will continue until March next year. From 28 September, people working fewer than 20 hours a week will receive $750.
Key points, as outlined by the ABC are:
- JobKeeper will fall from $1500 a fortnight to $1200 a fortnight in September and fall again in 2021.
- People working fewer than 20 hours a week will receive $750 from September and $650 in 2021.
- The JobSeeker payment will fall from $1100 to $800 a fortnight in September.
Businesses will have to prove each quarter that they’re still in financial distress (turnover down at least 30% on pre-pandemic levels) to stay eligible for JobKeeper after September. That’s actual GST turnover (rather than projected GST turnover).
To be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the both the June quarter 2020 (April, May and June) and the September quarter 2020 (July, August, September) relative to comparable periods (generally the corresponding quarters in 2019).
To be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses and not-for-profits will again need to demonstrate that their actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters relative to comparable periods (generally the corresponding quarters in 2019).
The travel industry welcomed the Government’s action.
THE AUSTRALIAN FEDERATION OF TRAVEL AGENTS (AFTA) described the decision as a victory for the travel and tourism industry, which lobbied the Government vigorously for the six-month extension.
“COVID-19 hit travel and tourism operators earlier than other industries and will continue to impact for longer so ongoing support is vital,” AFTA chief executive Darren Rudd said.
“Government is listening to us and this is a new win which has been achieved through collaborative and constructive interaction at all levels of government and across the political spectrum.
“Keeping the scheme going – albeit at a slightly lower rate and with tighter eligibility tests – provides a lifeline to viable businesses and our members. These are businesses that might otherwise have closed their doors for good, leaving people without jobs and consumers without support at a time when they need it more than ever.
“We know how tough it is for our member agents and the broader community. For economic survival we now need to turn to reopening of all domestic borders when safe to do so as well as establishing travel bubbles to get Australians travelling again while balancing the health risks.”
THE TOURISM & TRANSPORT FORUM (TTF) said the new measure provided “long needed certainty” and extended the lifeline for thousands of Australians in tourism as the industry continues to battle through Covid-19.
TTF chief executive Margy Osmond said the industry had been strongly advocating for an extension to the JobKeeper program though to at least March of next year to enable the sector to survive and provide more time to recover.
“As the significant economic and health challenges brought about by Covid-19 remain front and centre over the immediate period ahead, the Government has heard the voice of the tourism industry loud and clear about the critical need to continue JobKeeper in place as an economic lifeline.
“From accommodation providers, airlines, airports and cruising through to tourism operators, major and business events, performing arts centres and restaurants and cafes, today’s announcement gives our industry critical breathing space.”
“JobKeeper 2.0 will help to save thousands more tourism employees from the unemployment queue and keep them in jobs so that when we eventually come out the other side of Covid-19, we will be ready to move swiftly into the recovery phase.”
Research conducted by Stafford Strategy for TTF reveals that the extension of JobKeeper until March 2021 will help to stem the flow of tourism jobs lost as a result of the ongoing restrictions on travel in place because of the pandemic.
“While some of our State and Territory borders continue to remain shut and with planned openings postponed forcing many people to delay making plans to travel, any eventual uptick in domestic tourism will not be sufficient to fill the $4 billion black hole left by the lack of international inbound travel,” Osmond said.
“While we understand the JobKeeper scheme cannot go on indefinitely, tourism-related businesses have borne the brunt of government-ordered business closures and border closures.
“The seasonal nature of our sector means operators need more time to rebuild their businesses. Many would have had no opportunity if JobKeeper wasn’t extended until March 2021.”
THE AUSTRALIAN TOURISM EXPORT COUNCIL (ATEC) said the measure represented “an important step towards securing the future for Australia’s export tourism industry”.
“The extension of JobKeeper has been highly anticipated by businesses across the economy and none will be more grateful than Australia’s tourism industry to see its continuation,” ATEC Managing Director Peter Shelley said.
“This extension will give tourism operators the security of knowing they can plan about retention of staff and management of resources moving forward as they attempt to navigate a difficult period between now and when the international borders re-open.”
“Tourism businesses have been hit hard this year not just by Covid-19, but by bushfires, drought, floods – but they want to get back to business and are waiting eagerly to welcome back their international visitors. Having skilled staff ready and waiting to go will be a critical factor in the speed of their rebuild.”
Shelley said that while the new March extension date would be helpful for some tourism businesses, many internationally focused businesses would require further support “and sadly, some will not survive the distance”.
Shelley continued: “There are many, many businesses which have invested heavily in building tourism products which appeal to international visitors like reef and rainforest experiences, unique bridge climbs, natural attractions, indigenous tours, food and wine experiences and eco resorts – and these experiences have helped to deliver huge export income for our economy.
“These businesses need to be preserved, along with our valuable inbound tourism operator distribution businesses, in order to ensure we can reignite export tourism once borders open.
“Our research showed 90% of export tourism businesses are currently accessing JobKeeper and 55% say they need borders open by the end of the year to be viable, so we needed a solution to support those businesses to hold on until international borders open.
“We therefore welcome the JobKeeper extension news and congratulate the Government on its commitment to supporting the tourism industry.”
TOURISM ACCOMMODATION AUSTRALIA national chief executive Michael Johnson thanked the Prime Minister and Treasurer, saying accommodation hotels across the country were “barely holding on” and the announcement of JobKeeper 2.0 would save businesses.
“The announcement by the Government today will go a long way towards saving businesses and keeping our staff in jobs after September.
“It is good to see the Government acknowledge sectors like ours are suffering more than others and will continue to suffer into the future.”
“With international travel uncertain for at least 12 months domestic tourism will be our only way out. But until travel between all states and territories is possible, continuing JobKeeper is the only way to keep the sector viable.”
Johnson said the road to recovery for accommodation hotels had been “one step forward and two back, with huge differences across each state”.
He said the Association had concerns JobKeeper would not be effective for businesses which had suffered long-term shutdowns like those in Victoria.
“Given the length of forced shutdowns and our highly-casualised workforce, there is a concern eligible staff will have moved on when these hotels are ready to re-open,” Johnson said.
“JobKeeper is only payable for employees who were with the employer on 1 March 2020, so this would decrease the assistance to businesses in places like Victoria which have recently been shut down for a second time.”
Johnson said TAA would ask the Government to provide a re-set of JobKeeper employee eligibility for businesses which have extended periods of shutdown.
Edited by Peter Needham
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