The Covid-induced recession has been used across the world to justify massive increases in debt-funded government spending, as well as cheap easy credit. Such actions have definitely helped businesses survive in the short term, though the sums paid out have been massive. Crown Casinos, for example, reported receiving $111 million in Jobkeeper subsidies from March to June 2020, while (the also loss-making) Qantas reportedly pocketed around US$780 million during 2020. Even the smallest businesses on Jobkeeper have received thousands of dollars a month, and countless businesses have had the taxpayer cover most of their wage costs.
Tax-free cash flow boosts of between $20,000 and $100,000 were also paid to virtually all small and medium-sized businesses with employees. They got the money automatically when they lodged their BAS, and didn t even need to apply.
From March 2020 companies were eligible for the $1,500 fortnightly jobkeeper payment per worker for a period of six months if they estimated they would suffer a 30% revenue decline, or 50% for those with turnover of $1bn or more.
The rules were tightened from September requiring a reassessment every quarter and for the downturn to be based on actual GST turnover.
Ownership Matters found that ASX300 companies had banked a total of $3.8bn in government subsidies in 2020, including $2.5bn of jobkeeper payments claimed by 75 entities.
The six largest jobkeeper recipients were Qantas, which received $726m, Crown Resorts ($254m), Flight Centre ($195m), Star Entertainment Group ($152m), Eagers Automotive ($129m) and G8 Education ($102m).
Landlords and tenants face off over online sales
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The sharp growth in online sales spurred by the pandemic is shaping up as the next flashpoint between landlords and tenants as they spar over who gets a cut of the digital deals.
By some estimates up to 80 per cent of leases being renegotiated or signed post-COVID include blanket online sales clauses, a shift leasing specialists and lawyers describe as “contentious” and “overreach”.
Landlords are trying to get a portion of online sales included in leases.
JobKeeper and early super release rorts and overpayments on the rise
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ThuThursday 11
updated
FriFriday 12
The ATO has so far clawed back about $135 million of JobKeeper payments.
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The Australian Taxation Office (ATO) has revealed it is still owed hundreds of millions of dollars from companies that have attempted to rort the JobKeeper wage subsidy, were declared ineligible or were overpaid.
Key points:
More than 31,600 applicants for JobKeeper were rejected due to ineligibility or fraud
Twenty Australian companies have volunteered to repay $144 million worth of payments, but the ATO has so far received just $20 million
Individuals and companies are also having to repay incorrect payments for the early super release scheme and business cash flow boost