BREAKING: The Federal Treasury has admitted a 'significant error' has greatly inflated the number of people using JobKeeper and its cost. The $130 billion program is likely to cost $70 billion and cover 3.5 million workers, rather than more than 6 million.
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.But shadow treasurer Jim Chalmers said the problem showed the government was a shambles."After all the lectures about fiscal responsibility, Scott Morrison and Josh Frydenberg have had to admit to getting their numbers wrong by $60 billion," he told
The Sydney Morning HeraldThe Age."For weeks they’ve been telling casuals and others that the program was full when in reality they were 3 million workers short."If they can’t get this basic maths right how can we expect them to get the recovery right?"
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The PS pays gigantic salaries specially for the HODs . Do they have a basic knowledge of arithmetic? Hey buds. Give another 4.7 Billion to the pensioners. After all when pensioners received the first stimulus package it was at the peak of the virus and super markets were ripping them off with their high prices.
More training required, errors at any level need more attention than has been given. Since the Federal Treasurey is working with Tax Payer Funded money a report of actions intended on the desk by Monday please? Help the casuals then!!! At least it isn't a negative error where they're spending more than thought
JoshFrydenberg must have asked senbmckenzie to help. Dumb and dumber. auspol Good news. Less national debt. God help us with the muppets in charge Bunch of jokers, and these are the people we’re supposed to believe can run this country Hillsong about to get a donation. Hmmmmmmm....Doppiopappa Oh Come on - this is such a bullshit story. Who WASN'T thinking the problem was going to be bigger at the start.. That's what you have to DO at the time. This was contingency for if the problem got huge (1)
Josh is an error. ScottMorrisonMP JoshFrydenberg This is a great error so we could leave a smaller debt to our children. Don’t forget people what ever the figure it’s tax payers money so it has to be paid back some how Only nearly 100% error. Nothing to see here. Rather have savings than the alternative.
At least Australian politics admit to their errors, Communist China would have stuck to their lie and kidnapped those who exposed their lie. So casuals; University’s could have had this program? 🤔 The significant error is giving this low brow a job he is just not cut out to do! But then again just look at his boss ScottyFromMarketing so I suppose the bar is VERY low in the LNP
Need a new bookkeeper JoshFrydenberg can’t that money be used to assist the families that dipped into their superannuation?! Thats because they kept fiddling the rules We are all human and can make mistakes. Ho well it’s a small mistake ,is it not? The significant error was electing this government into power.
There are teenagers who were paid $150 fortnightly in their jobs who went to be paid $1,500 fortnightly on JobKeeper. Seriously? Did no one notice that? Would deliberating altering the rules to exclude university employees perhaps have something to do with that? Oh Terrific, now we are only half as fuck with government debt as before. After it hits $80bn, we should just stop counting.
And Josh is the Treasurer. FFS! No wonder Australia is in trouble Do we laugh or just recoil in horror that they mucked this up so catastrophically? Ha f ha that’s just made my year Incompetence is what the liberals do very well So, working as intended then. They've excluded so many businesses from applying and made it so hard for those who are eligible that they spent half what was needed.
Just another error from this corruptwankergovt Wake up Australia! It's a rounding error. Better over than under .... I smell a rat..... The best kind of error to have , is one that cost us less How fucking dumb is that? But jobseeker figures are bigger...if not on jobkeeper they're likely on jobseeker lol
Anyone have any figure's on how many workers are in Australia? Do the numbers add up or is joshy telling more lies? They really Ruby Princessed this didn’t they! Misleading parliament its no error.... it's in their DNA but a CEO would be sacked by the board if this error was made in a corporate environment. worldwidecrisis JoshFrydenberg
Good might keep Good, might keep going for the six months. Clearly that is the case. All of those out of work folk are there by choice- there is plenty of work around! What a joke- great money managers eh! 'saved' money must be used towards further boosting the economy. What, did they get Dutton to help with the counting or something?
MinhKular That's what happens when you just pluck figures out of the air The good news is we found the error (and dealt with him in the potatoe patch like the rest of the capitalist idol worshipers), after translating the Mandarin number 4 correctly this time - we hope?. Oops! The bad news - w r all still scre....! Thanks. Enjoy ur day! 😁 auspol
Oh good, it's cheaper. that's good I guess. but the numbers are more or less meaningless if like the bushfire recovery fund, no one's received the funding, or like the women in sport thing, where no-ones received the funding. Notice a theme? All talk, no action. That’s great news They are going to balance the budget. 🤣🤣🤣🤣🤣🤣
Bull$hit - this is propaganda by theMORRISON government and an enabling pathetic media. We have a forecast government debt of $1Trillion Don't forget the people that aren't eligible for it due to income threshold for current FY, watch the numbers increase dramatically fron July 1 (if it's still around that is)
This doesn’t factor in thay the jobkeeper is taxable so the government will get 10-20b if that back in tax and Medicare levy? Was this Excel spreadsheet colour-coded? Good error!! Maybe they can afford to inlude university staff and the arts. The superior economic managers. How convenient
'Significant error': Treasury reveals much lower JobKeeper useThe 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 swrighteconomy swrighteconomy That's a hell of an error swrighteconomy Just like the Dead Zone Plague, lockdown etc, Even the HQC (but not the zinc)
Number of Australians on JobKeeper revised down by 3 million due to 'significant' reporting errorBREAKING: Treasury has revealed the number of Australians receiving the JobKeeper allowance has been grossly overestimated. So we cannot even get a correct number on this...well done So the money is now available for cultural workers? University workers? local government workers?
Jobkeeper payment overestimated by $60 billionBREAKING: Treasury and ATO have revised the number of expected JobKeeper recipients from 6.5 million to 3.5 million, after discovering 'significant' reporting errors. 9News pls let's find a treasurer who can do math. Lmao they run our country. Hope the person that caught this error gets a gift card
Unemployment rate expected to rise further | Sky News AustraliaTreasury Secretary Steven Kennedy has revealed he would “not be surprised” if the country's unemployment rate rose again following a more significant drop in the April participation rate than expected. \n\nAustralia’s unemployment rate rose to 6.2 per cent in April, with the participation rate dropping by 2.4 per cent in the same month. \n\nMr Kennedy said it was not clear if the JobSeeker scheme was contributing to the fall in participation, but said he believed it was due to people not being available for work due to lockdown restrictions. \n\nImage: News Corp Australia
Australia close to virus unemployment peak, says TreasuryTreasury secretary Steven Kennedy is confident a prediction of a 10 per cent unemployment peak is close to the mark, despite a lower official figure. Might one suggest that, based on the definition of employment by Govt, unemployment has been above 10% for years. How about we tell the truth and base the number on those achieving above a liveable wage.
Contingency needed for JobKeeper end: Labor | Sky News AustraliaShadow Employment Minister Brendan O’Connor says the government must outline its contingency plans for businesses kept alive by JobKeeper when the program ends in September in case the economy stalls in its recovery. \n\nThe government’s wages scheme, along with it’s the increase to the JobSeeker welfare payment, conclude on September 30, fuelling concerns the end of the scheme is only delaying a sharp increase in the unemployment rate. \n\nMr O’Connor told Sky News despite easing restrictions, Labor remains concerned for those employed in sectors, such as aviation, that will taker longer to open back up. \n\n“Our concern would be sectors that would not be opening up very quickly, like aviation, and further beyond the end of JobKeeper and JobSeeker packages, how will businesses survive if they are still dealing with this issue full on in front on,” he said. \n\n“There has to be at least some contingency plans of government to deal with those issues now and deal with the potential challenges we will face at the end of September.”\n\nWhen asked if he would like to see the programs extended, the Labor frontbencher said that was the government’s problem to solve. \n\n“I think the government should come up with its proposals. It has access to treasury, it has access to government agencies, I think it has, should have, a really good picture of what is happening in the labour market and the economy,” Mr O’Connor said. \n\n“We will work with the government but it is up to them to come up with the precise options.”\n BOConnorMP Like give more money?....ffs. JEChalmers BOConnorMP Mr O’Connor, you state that 500,000 people stopped looking for work last month. Do you think this is due to the Govt’s increased amount of money for the ‘Jobseeker ‘ payment? BOConnorMP Onya Kevin Rudd.