Corangamite MP Libby Coker is urging the Federal Government to use the Federal Budget to reverse its decision to cut back the JobKeeper subsidy on September 28.
Labor analysis of the Treasury and ATO JobKeeper data estimates that around 22,528 workers in Corangamite could be worse off and more than $20,000,000 will be ripped out of the local economy every fortnight if the Morrison Government goes ahead with its cuts.
Ms Coker warned the planned cuts will only make the recession worse and will do little to help already struggling businesses in regional Victoria.
These cuts are coming at the worst possible time for many workers, businesses and communities who are relying on it, she said.
While regional Victoria is benefiting from the easing of restrictions, for many businesses it is going to be a long road back.
We shouldnt be ripping support from those who need it.
From Monday 28 September, cuts and changes to the JobKeeper scheme will see local businesses and workers lose access completely, while others will have their payments slashed by between $300 and $750 per fortnight.
Ms Coker said with nearly one million Australians unemployed and with unemployment expected to increase, it made no sense for the Morrison Government to be withdrawing support without a comprehensive jobs plan to replace it.
The premature withdrawal of JobKeeper support follows the Morrison Governments inexcusable decision to exclude millions of workers from the program, including over a million casual workers, she said.
In recent days, concerns around compliance with JobKeepers rules by some businesses have surfaced, with 8,000 tip-offs reported to the Australian Tax Office many concerning deliberate underpayments of the wage subsidies.
JobKeeper has done a lot of good and protected many businesses in my region. But we must acknowledge its failings, Ms Coker said.
At the end of the day, the program has been cruelled by Scott Morrisons botched implementation, poor compliance enforcement, and premature cuts.
The recession will be deeper, and the unemployment queues will be longer because Scott Morrison is pulling support from the economy too soon.
Our community really needs and deserves a comprehensive jobs plan to set us up for the recovery and the future.
