The Federal Treasury has admitted a 'significant error' in the Morrison government's JobKeeper application form has greatly inflated the number of people using the scheme and its total cost by $60 billion | swrighteconomy
The Treasury Department has revealed a 'significant error' in how businesses have applied for JobKeeper will save the government $60 billion.
Very large text sizeThe Federal Treasury has admitted a "significant error" in the Morrison government's JobKeeper application form has greatly inflated the number of people using the scheme and its total cost.In a statement released on its website, the department revealed the $130 billion program - the centrepiece of the government's response to the coronavirus pandemic - was likely to cost $70 billion and cover 3.5 million workers, rather than more than 6 million.
Treasurer Josh Frydenberg is due to comment later on Friday about the JobKeeper revelations.Credit:Alex EllinghausenIt said a tax office review of the enrolment forms used by businesses to apply for the scheme had found about 1000 firms had made "significant errors" when estimating the number of staff who would use the program.
The most common error was where firms, asked to report the number of employees they expected to go on to JobKeeper, actually reported the amount of money they expected to receive. More than 500 firms alone with one eligible worker reported "1500", which is the JobKeeper payment per person per fortnight.
AdvertisementLoading"This reporting error has come to light as the ATO and Treasury have been analysing the amounts being paid out under the scheme, reconciling these with the estimates provided by enrolled businesses of the likely number of eligible employees," it said.
"It was not picked up by the ATO earlier as their primary focus in the first fortnight of JobKeeper payments was on ensuring that JobKeeper payments were paid promptly to those eligible for them, and not paid to those who were ineligible."These initial estimates from businesses of employees covered are not linked to payments, and so were not as carefully analysed."
The department said as of May 20, 910,055 firms had enrolled for JobKeeper, of which 759,654 claims had been processed.LoadingBased on this take-up, the Treasury now believes 3.5 million will access the program. When it was first announced, the government said it expected 6 million.
The much lower number of people on JobKeeper will also deliver a huge saving to the federal budget. Treasury now puts the estimated cost at $70 billion.The department said the problems did not alter its view of the state of the jobs market."It remains the case that in the absence of the JobKeeper program, Treasury expects the unemployment rate would have been around 5 percentage points higher," it said;
"Treasury continues to expect the unemployment rate to reach around 10 per cent, although as indicated by last week’s labour force survey, the measured level of the unemployment is highly uncertain given the impact of social distancing restrictions on the participation rate."
Treasurer Josh Frydenberg is due to comment on the revelations later on Friday.Sign up to our Coronavirus Update newsletterGet our Coronavirus Update newsletter for the day's crucial developments at a glance, the numbers you need to know and what our readers are saying. Sign up toRead more: The Sydney Morning Herald »
swrighteconomy Well, they can extend it to all the workers they left out, casuals, migrant workers, arts, international students noworkerleftbehind swrighteconomy Effectively $60b they arent stimulating the economy with. I know of two companies that never actually received the jobkeeper payment but qualified. It’s not a budget error, it’s skimping . Casuals, overseas workers hung out to dry too. Recession requires government stimulus.LNP👎🏻
swrighteconomy Taylor: I didn’t download it Morrison: I didn’t approve sportrorts Cash: I didn’t call the AFP Liu: I didn’t breach AEC Cormann: I didn’t know I hadn’t paid airfares Canavan: I didn’t know Mum signed me up Frydenberg: I didn’t know about the extra $60b auspol JoshFrydenberg bencubby swrighteconomy A significant error!! that's putting it mildly
swrighteconomy Josh looks like he's put on weight, looking chubby face. Must be that $240 a day meal allowance polly get swrighteconomy Mistakes made in forecasts are ok but this just shows how out of touch government system are to reality. Job keeper was overly complex. Still how about stop pending more fear and admit you got the virus modelling 98% wrong and we can call it even.
swrighteconomy Good! Government can print less money and stop devaluing our savings, income and pensions! swrighteconomy Oh dear swrighteconomy scottyfrommarketing conartist morallycorrupt dishonest notsurprised untrustworthy swrighteconomy Dear oh dear, where’d that big hole come from? swrighteconomy Woops, forgot to carry the one! Thank God the superior economic managers are in charge.
swrighteconomy I can read the headlines before the next election “ WE HAVE SAVED BILLIONS in jobkeeper payments!” swrighteconomy Should be sacked for being incompetent swrighteconomy This corrupt government keep fucking things up ... Our Murdochracy is under threat . swrighteconomy Such a competent government in every possible way 🙄
swrighteconomy I wouldn't trust an economist to count the fingers on one hand. Economics is as reliable as astrology and entrails gazing. It's a voodoo practice and needs a complete overhaul. It predicts nothing. swrighteconomy What a load of cobblers. Bushfire Response. Ruby Princess. China Trade. Stimulus Bungle....they are taking incompetence to a whole new level.
swrighteconomy Honestly …..he is the Treasurer of OZ LNPfail swrighteconomy Something to do with hiding under that doona that ScottyFromMarketing is always on about? swrighteconomy swrighteconomy It’s an error in Australia’s favor, we are not in so deep and should bounce back quicker swrighteconomy Treasury the keeper of the accounts?
swrighteconomy They have to go!! Fiscally irresponsible and corrupt to boot!! swrighteconomy mmm some small error pocket money swrighteconomy Vitally missing the word reported ‘had greatly inflated the reported number’, actual number now lower swrighteconomy Arts and cultural workers. International students. Universities. Local Governments. We know where the gaps are. Let's putty them up!
swrighteconomy 6.2% unemployment is way way out!! It’s more like 12% or even higher!! swrighteconomy swrighteconomy So the unemployment figures must be way out then swrighteconomy Imagine if this guy was the Treasurer..... swrighteconomy Just like the Dead Zone Plague, lockdown etc, Even the HQC (but not the zinc)
swrighteconomy That's a hell of an error swrighteconomy
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