ScoMo announces JobKeeper must come to an end - but how will this affect you?
The latest ABS employment data released shows that Australia’s employment rate has bounced back to pre-pandemic levels. ScoMo says an extension to JobKeeper would hold the economy back, as unemployment has also dropped by 70,000 people in Feb 2021.
ScoMo has said there is “still a long way to go”, but what does this mean for you? How will this impact you, your family, your employment, your business? The Government has maintained that JK is in its final phase, and that “If these programs go beyond what have been their effective period, can actually start to hold the economy back.”
Treasurer Josh Frydenberg agrees that “it will be bumpy.” Bumpy. Solid economic policy right there.
The last 12 months have impacted families, business and individuals in different ways. Some have lost everything, others have prospered. What I am interested in learning and hearing about here is how this will affect you. What domino effects will the cessation of JK have on you?
We are in the unique position where we get to see business data first hand and the way that Covid has changed each business owners’ world. When Covid first hit, we saw some businesses close their doors, some had their retainers cancelled overnight, other businesses grew.
Prior to Covid, there was an assumption that being employed provided stability whilst working for yourself was risky. In my opinion, the tables turned last year. A pandemic forces creativity to another level, and whether thinking outside of the box was a result of innovation or desperation – it provided motivation for thousands of people.
In the 2019-20 financial year, ABN registrations increased (source ABS). There was a 21% entry rate for Sole Traders with 139,323 registrations whilst companies had the largest net growth of any type of legal organisation, increasing by 25,678 businesses.
In a conversation with my account manager Steve Leaney from Xero last year, he mentioned that 150,000 new ABNs had been applied for since Covid hit. That was in November 2020 – 8 months, 150,000 new registrations.
The press articles being written at the moment estimate over 100,000 jobs will be lost when JK ceases in less than two weeks. This is deemed to be short term however transport, arts, and food services are categorised as high risk, as they are the first to be impacted when lockdowns are enforced. Coupled with the once in a hundred year flood events currently happening in New South Wales - where does this put your recovery?
I say this with genuine curiosity. I am wondering how we as a community can band together and help each other. What do you need to make it through?