Courtesy of The Guardian, some headline results of another weekly Essential Research poll on coronavirus, the full report of which should be published later today. This includes regular questions on federal and state governments’ handling with the crisis, of which we are only told that respondents remain highly positive, and on easing restrictions, for which we are told only 25% now consider it too soon, which is down two on last time and has been consistently declining over five surveys.
Beyond that, the survey gauged response to a number of what might be described as conspiracy theories concerning the virus. By far the most popular was the notion that the virus “was engineered and released from a Chinese laboratory in Wuhan”, which has received a certain amount of encouragement from the Daily Telegraph but is starkly at odds with the scientific consensus. Agreement and disagreement with this proposition was tied on 39%.
Thirteen per cent subscribed to a theory that Bill Gates was involved in the creation and spread of the virus, with 71% disagreeing; 13% agreed the virus was not dangerous and was being used to force people to get vaccines, with 79% disagreeing; 12% thought the 5G network was being used to spread the virus, with 75% disagreeing; and 20% agreed the number of deaths was being exaggerated, with “more than 70%” disagreeing. The poll also found 77% agreed that the outbreak in China was worse than the official statistics showed.
The poll was conducted Thursday to Sunday from a sample of 1073.
UPDATE: Full report here.
What a joke.
https://www.theage.com.au/politics/federal/government-looks-to-carbon-capture-for-climate-action-20200518-p54u4n.html
frednk
Scrott from Marketing fixed everything with his reforms.
The number of people who believe in these various conspiracies persuades me that we are not as “educated” as we suppose.
Nor as “clever”. Barley growers are very unhappy this morning.
Great post from it’s thevibe last night at the end of the last thread.
lizzie @ #3 Tuesday, May 19th, 2020 – 4:49 am
It would be interesting to see how many respondents believe in multiple conspiracies and what percentage of the population believe in at least one.
Barney
And how many conspiracies you have to believe in at once to qualify as a Malcolm Roberts!
Good morning Dawn Patrollers
With justification, Peter Hartcher describes Trump as the “mad sheriff” as he examines Australia’s strategic position.
https://www.smh.com.au/national/on-the-brink-of-peril-australia-is-left-wondering-what-the-mad-sheriff-has-in-mind-20200518-p54txp.html
Katharine Murphy unpicks the latest Essential poll of 1,073 respondents that suggests the economic shock caused by the pandemic has shaken people’s faith in their short and medium term labour market prospects, with low optimism about wages growth and prospects for promotion once the crisis has passed.
https://www.theguardian.com/business/2020/may/19/essential-poll-one-in-10-australians-who-have-lost-jobs-fear-they-wont-work-again
Australian shares are set to catch a global wave of enthusiasm about rising prospects for a vaccine against the COVID-19 virus. ASX futures were up 2pc.
https://www.afr.com/markets/equity-markets/asx-to-surge-a-rallies-on-vaccine-hopes-20200519-p54u6a
China’s President Xi Jinping has backed a comprehensive review of the global response to the coronavirus, but has stopped short of endorsing an independent probe advocated for by Australia and the European Union.
https://www.smh.com.au/world/asia/xi-jinping-backs-comprehensive-review-of-covid-19-20200518-p54u5u.html
The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said, and she stressed the danger of protectionism.
https://www.smh.com.au/business/the-economy/imf-chief-warns-full-global-economic-recovery-will-take-much-longer-than-first-thought-20200519-p54u6d.html
The SMH editorial says that prolonged continuation of closed state borders looms as a huge economic challenge and should not be viewed just as basic interstate rivalry. The national cabinet should turn its attention to resolving the issues co-operatively, in the interests of the whole nation’s recovery from the debilitating pandemic.
https://www.smh.com.au/business/the-economy/interstate-travel-will-be-crucial-to-economic-recovery-20200518-p54u1d.html
Frank Bongiorno writes that crises can make leaders but they can also break them – or, as happened over the summer with Morrison, nearly break them. He says that despite Morrison’s good start on the pandemic Morrison faces immense challenges of rebuilding the economy in the context of debt, deficit, global depression and the danger of new outbreaks of disease, may well be a more testing challenge to his leadership than anything so far.
https://theconversation.com/why-good-leaders-need-to-hold-the-hose-how-history-might-read-morrisons-coronavirus-leadership-137785
The editorial in the AFR says that a year on from its devastating federal election defeat, it is no clearer where modern Labor stands on the mainstream economic reform agenda.
https://www.afr.com/policy/economy/labor-looks-lost-in-the-battles-of-the-1980s-20200518-p54tuy
Michelle Grattan discusses a five point plan that Bill Kelty has proposed to help Australia climb out of the recession.
https://theconversation.com/view-from-the-hill-bill-keltys-five-point-plan-for-coming-out-of-covid-if-scott-morrison-is-looking-for-ideas-138848
South Australia is headed for huge State Budget deficits of more than $1 billion both this year and next, as spending explodes and tax returns plummet due to unprecedented coronavirus pandemic responses.
https://www.adelaidenow.com.au/news/south-australia/sa-set-for-state-budget-deficits-above-1-billion-this-year-and-next-as-lockdowns-health-costs-bite/news-story/4f39abafec4c4bcb6d6625f46e2b468f
Troy Bramston writes that Scott Morrison can’t make history while he’s still a mystery.
https://www.theaustralian.com.au/commentary/scott-morrison-cant-make-history-while-hes-still-a-mystery/news-story/90fe04cdda297898e89d303343f56738
The big stimulus spending has just begun. Here’s how to get it right, quickly suggests Richard Denniss.
https://theconversation.com/the-big-stimulus-spending-has-just-begun-heres-how-to-get-it-right-quickly-138414
Bevan Shields writes that the European Union would be allowed to raise joint debt under an unprecedented coronavirus recovery plan considered a political and fiscal no-go zone only two weeks ago.
https://www.smh.com.au/world/europe/merkel-and-macron-find-a-new-and-unusual-path-to-stave-off-trouble-in-europe-20200519-p54u67.html
New data suggests the economy is on the road to recovery. A survey by the Australian Bureau of Statistics found the number of Australians with a job has steadily increased over the month to early May.
https://thenewdaily.com.au/finance/work/2020/05/18/abs-survey-economic-recovery/
The unemployment rate gets the headlines but it’s underemployment we should look out for warns Greg Jericho.
https://www.theguardian.com/business/grogonomics/2020/may/19/the-unemployment-rate-gets-the-headlines-but-its-underemployment-we-should-look-out-for
Fergus Hunter tell us that Communications Minister Paul Fletcher has condemned online misinformation linking 5G technology to the coronavirus and sounded the alarm about a growing vandalism risk to critical telecommunications infrastructure.
https://www.smh.com.au/politics/federal/government-lashes-utterly-baseless-5g-coronavirus-conspiracy-theories-20200518-p54u06.html
Experts are calling for couriers and other workers at risk of becoming “super-spreaders” to be the focus of a new wave of coronavirus testing, after a dozen McDonald’s outlets were closed when a delivery driver tested positive to COVID-19. The article lists a number of occupations that pose similar risks.
https://www.smh.com.au/national/the-jobs-that-could-put-you-at-risk-of-being-a-coronavirus-super-spreader-20200518-p54u12.html
Hundreds of McDonald’s employees in Melbourne are on unpaid leave for 14-days because they may have come into contact with a delivery driver who tested positive to Covid-19.
https://www.theguardian.com/world/2020/may/19/hundreds-of-mcdonalds-employees-placed-on-unpaid-leave-after-covid-19-contact
Ian Harper, the economist who chaired Australia’s minimum wage panel the last time it decided to freeze the pay of Australia’s poorest workers has warned any increase this year risks higher unemployment and lower spending.
https://www.smh.com.au/politics/federal/top-economist-says-australia-should-turn-to-its-gfc-playbook-on-wages-20200518-p54u0m.html
The editorial in The Canberra Times says that it’s a time for empathy, and evidence-based measures that actually help people gain new skills and meaningful employment, instead of just punishing them for falling on hard times.
https://www.canberratimes.com.au/story/6759666/reset-welfare-system-to-help-not-punish/?cs=14258
The Grattan Institute’s Marion Terrill understands Gladys Berejiklian’s nervousness about relaxing the lockdown. She says travelling on public transport is risky at present, and her plan is a sensible attempt to deal with those risks head-on.
https://www.smh.com.au/politics/nsw/shame-about-the-cars-but-premier-is-right-to-be-cautious-about-public-transport-20200518-p54txr.html
Mike Foley reports that the Morrison government is eyeing legislative changes to allow its clean energy agencies to fund carbon capture and storage from fossil fuel projects in a bid to unlock $2b of private investment to reduce greenhouse gases. Here we go again!
https://www.theage.com.au/politics/federal/government-looks-to-carbon-capture-for-climate-action-20200518-p54u4n.html
According to the AFR businesses are manipulating their cash flow to artificially suppress monthly revenue and game the federal government’s $130 billion wage subsidies. Surprised?
https://www.afr.com/policy/economy/jobkeeper-payments-being-gamed-20200518-p54tyy
The Commonwealth Director of Public Prosecutions has appointed top Sydney barrister David McLure SC, a former legal officer attached to the special forces turned rising star of the Sydney bar, to lead efforts to prosecute decorated Afghan veteran Ben Roberts-Smith for alleged war crimes.
https://www.smh.com.au/politics/federal/top-sydney-barrister-to-oversee-war-crimes-probe-against-ben-roberts-smith-20200518-p54u49.html
Processing of both temporary and permanent visas appears to have all but ceased, even ahead of the pandemic, writes Abul Rizvi.
https://independentaustralia.net/australia/australia-display/international-movements-collapse-as-visa-processing-hits-record-lows,13906
The government has tossed $130 billion at business, the corporate largesse is dripping all over the big end of town. Even highly profitable $8 billion property developers such as Mirvac are rolling in the free money, yet when it comes to Virgin Australia they are being all punctilious about “letting the market sort it out”. Michael West reports on the future of Virgin.
https://www.michaelwest.com.au/the-virgin-brides-fate-of-airline-on-a-knife-edge-as-bids-lob-and-cash-runs-dry/
Matt Johnson reports that Australia’s big banks have come under fire for charging ‘exorbitant’ interest rates on credit cards tied to Virgin Australia’s frequent flyer program.
https://thenewdaily.com.au/finance/consumer/2020/05/19/big-banks-frequent-flyer-credit-cards/
The AIMN piles into Andrew Laming over his comment in the media recently suggesting that parents send their children back to school, regardless of the recommendations of the various Education Departments around Australia.
https://theaimn.com/people-that-live-in-glass-houses/
The head of an international group coordinating coronavirus vaccines has warned against “vaccine nationalism”, saying she fears for what happens once a vaccine is found.
https://www.canberratimes.com.au/story/6760810/epidemic-chief-warns-against-coronavirus-vaccine-nationalism/?cs=14350
Stephen Bartholomeusz explains how The US is playing a dangerous game as it seeks new pressure points to demonstrate how tough it is on China.
https://www.smh.com.au/business/the-economy/trump-is-threatening-the-global-financial-system-as-he-looks-to-punish-china-20200518-p54ty8.html
Jennifer Hewett writes about the death of hot-desking, a cost saving masquerading as a HR fad.
https://www.afr.com/property/commercial/the-death-of-hot-desking-a-cost-saving-masquerading-as-a-hr-fad-20200518-p54u1u
Anna Patty reports that new allegations of misconduct have been levelled at St Andrew’s College after a landmark review had recommended cultural change. This outfit certainly has form!
https://www.smh.com.au/national/nsw/new-allegations-of-student-misconduct-at-university-of-sydney-college-20200518-p54txw.html
Jenna Price explains just what that form is.
https://www.smh.com.au/national/nsw/at-sydney-uni-s-privilege-factories-the-mostly-migrant-workers-clean-up-rich-kids-mess-20200518-p54u2f.html
Rosalind Dixon proposes ways in which the government spend on childcare can be effectively repurposed to assist our economic recovery.
https://www.smh.com.au/national/replace-free-childcare-scheme-with-tax-deductions-to-kickstart-economy-20200518-p54tyg.html
David Crowe reveals that the Morrison government is yet to spend more than $600 million in cash promised one year ago for community projects, just as local councils call for urgent funding to boost the economy.
https://www.smh.com.au/politics/federal/federal-government-still-to-spend-600m-promised-to-communities-20200518-p54u3q.html
There is no way bankers want to get embroiled in the battle between billionaire retailer Solomon Lew and the big shopping mall owners and retail landlords, but they’re keeping a close watch writes Karen Maley.
https://www.afr.com/companies/financial-services/bankers-keep-close-watch-on-shopping-mall-wars-20200518-p54twb
The London Telegraph explains how Saudi Arabia has been forced to take a good look at itself.
https://www.smh.com.au/business/markets/saudi-crown-prince-bites-the-bullet-as-kingdom-faces-its-biggest-crisis-ever-20200518-p54tti.html
The Washington Post says Trump has proclaimed the latest phase of pandemic response the “transition to greatness”. But Trump appears poised to preside over the eventual transition more as a salesman and marketer than a decider.
https://www.smh.com.au/world/north-america/trump-shrinks-power-of-the-us-presidency-in-response-to-pandemic-20200518-p54tv3.html
The Washington Post reports that US Attorney-General William Barr says he does not expect a Justice Department review of the FBI’s handling of 2016 election interference to lead to criminal investigation of former president Barack Obama or former vice-president Joe Biden.
https://www.theage.com.au/world/north-america/no-criminal-probe-barr-pours-cold-water-on-trump-s-obama-allegations-20200519-p54u6b.html
Cartoon Corner
David Rowe
Cathy Wilcox
https://static.ffx.io/images/$width_828/t_resize_width/q_86%2Cf_auto/806ae91c7947787a8f5feda5e548f5e0cf8cc61d,jpg
Andrew Dyson
Matt Golding
Andrew Weldon
Mark David
Chris Downes
John Spooner
https://cdn.newsapi.com.au/image/v1/da1d0a052ffdb8360de1800c89b9f091?width=1024
From the US
Well just pick up the phone and give them a call Simon.
They’ll keep voting National/LNP, as they always do.
Australia should be spamming China with beer ads. Mmmm, refreshing Australian craft beer.
lizzie @ #6 Tuesday, May 19th, 2020 – 5:02 am
I think that is an accepted definition for an approximation of infinity.
Jaeger
Like this ? 🙂
.
.
Mmmm, refreshing Australian craft beer.
Morrison setting out his new narrative for the Labor Party. Exclude them from discussions, then say they refuse to cooperate.
https://thenewdaily.com.au/news/2020/05/19/paul-bongiorno-scott-morrison-polls/?utm_source=Adestra&utm_medium=email&utm_campaign=Morning%20News%20-%2020200519
Spot the lie in this announcement by Trump.
Jacob Greber
@jacobgreber
· 1h
BREAKING: Trump says “I’m taking it, right now”
Hydroxychloroquin
Lot of doctors, front line workers taking it too, says Trump
GG
But Trump has heard lots of good stories about it!
Xi now supports a ‘comprehensive’ review.
I assume that this will include why states like Australia refused to release full modelling and all data inputs at the beginning of the virus, why Australia banned travel from China and continued so to do when it was obvious that countries like the US were a major source of Australian infections. And why countries like Australia left overseas people from countries like India and China to beg for food and shelter.
Naturally any comprehensive review will look at how Trump fucked up the management of the Virus in the US.
Also, naturally the investigation should only start once the Virus is under control… next year at the earliest but perhaps even 2021. The long game beats a series of short games every single time.
Xi has donated an additional $2 billion to WHO. Trump cut US funding to WHO.
Xi is now punishing Australia for Huawei, treating Chinese nationals badly, singling out China for travel bans, and instigating a de facto attack on Xi’s handling of the Virus.
While Xi was trying to bring Australia to heel on the Virus investigation and sundry other national insults to Xi (and hence China) Trump (and hence the US) helpfully thought it might be time to gut Australian industries which depend on JSF production.
Compare and contrast Xi and Trump.
Morrison (and hence Australia)? Mug in the Middle.
BK @ #14 Tuesday, May 19th, 2020 – 5:29 am
I have a good story.
I took it for Malaria prevention years ago and remember having some really vivid dreams.
It was the first time I can remember dreaming in colour! 🙂
Trump is the master of diversion
Barney in Tanjung Bunga @ #16 Tuesday, May 19th, 2020 – 7:33 am
Did it turn your hair Orange?
Greensborough Growler @ #18 Tuesday, May 19th, 2020 – 5:37 am
No idea, I’d have to have hair first! 🙂
In breaking news:
Barney in Tanjung Bunga @ #19 Tuesday, May 19th, 2020 – 7:39 am
You obviously didn’t have the good stuff, then!
Yep. Trump is a master of distraction. And so many continue to fall for it.
It is a running clusterf@@k, but yet as soon as Trump throws a bone of distraction. Everyone is chasing it. Sigh….
Meanwhile…….
Greg Sargent
@ThePlumLineGS
· 7h
NEWS:
House Dems have learned that the State Department IG fired by Trump had mostly completed an investigation into the decision by @SecPompeo to fast track $8 billion in arms to the Saudis, I’m told.
Dems are looking at a possible link.
New piece:
https://washingtonpost.com/opinions/2020/
GG
Freeballing is a health hazard. Lol!
Btw did you see my reply to your post re plenty gorge walk?
The Drum. Adam boasting about the huge rise in Oz subscriptions. But the truth is…
poroti,
Craft beer – not cruft beer.
While Trump boasts about taking unproven drugs to combat coronavirus, meanwhile….
https://www.nytimes.com/2020/05/12/us/politics/kushner-election-november.html?campaign_id=39&emc=edit_ty_20200518&instance_id=18576&nl=opinion-today®i_id=80183539&searchResultPosition=1&segment_id=28269&te=1&user_id=38bee17b31353ebe4f4614d1b2cabcc0
This is more likely the situation
Laffmotron
@laffmotron
·
55m
Replying to
@TheRickWilson
This is a stock scam.
He and his pals hae invested heavily in it.
trumpo is not taking hydroxychloroquine, he’s PUSHING it
Vic,
Hi Vic. Yes I did.
Anything north of Grimshaw Street is your parish afaiac.
Looking forward to Farm Vigano reopening, though.
Drat, missed the “New thread” bit again. Sort of a repost. Can I go home now?
Gina and Twiggy and Clive and other fossil fuel companies will be lining up with their greedy little hands out if this joke go through.
The Emissions Reduction Fund, surprise surprise, is chaired by a former Business Council of Australia president so of course he thinks it’s a wonderful idea. Maatteess looking after maatteess.
https://www.smh.com.au/politics/federal/government-looks-to-carbon-capture-for-climate-action-20200518-p54u4n.html
Deputy Dope and the Dopey Clan will just drift along in Sheriff Trump’s dust as he continues to wreak havoc everywhere. Deputy Dope will make meaningless noises and just pull his bandanna up to stop choking on the fallout from Dust Storm Donald.
https://www.smh.com.au/national/on-the-brink-of-peril-australia-is-left-wondering-what-the-mad-sheriff-has-in-mind-20200518-p54txp.html
Victoria @ #27 Tuesday, May 19th, 2020 – 5:52 am
Ever since he started spruiking it I’ve wondered what kind of kick backs he was getting. It therefore wouldn’t surprise me at all to learn that this is true.
GG
Actually my parish is St Mary’s. Lol!
Farm vigano is a very nice place.
My niece who has autism attends a program at that site.
It certainly looks like China has taken control of the trajectory of the WHO inquiry into the origins of covid-19. Presumably the US will have little say unless Trump resumes its financial contribution to WHO.
Morning all. Thanks BK for the roundup, some good pieces in the Conversation.
On the headline poll for this thread, 12% to 13% of Australians are confirmed idiots. No wonder Hanson and Katter get reelected so easily. It really is a sobering lesson. It is not just 2-3%. One voter in eight will fall for nonsense.
So much money floating around and yet none of it will help bushfire victims. But it could fund some you-beaut fire-fighting machines.
https://www.theage.com.au/national/nsw/celeste-barber-s-51-million-raised-for-rfs-cannot-be-used-by-other-charities-court-told-20200518-p54tzw.html
Socrates
Based on the anecdotal experiences I have had over past few weeks, I am inclined to believe the poll. Why are so many people gullible?
Well at least by taking hydroxychloroquin, Trump won’t catch malaria when he visits the swamplands of Louisiana.
There was a Conversation piece (well written) about a poll of leading economists on whether the lockdown was worth it. Over 70% said yes.
Yet this is one issue where the economists should be ignored. Economists get in trouble when they imagine they can answer all questions. The inventor of welfare economics warned that it should only be used to decide between similar, measurable things. Fundamental social issues, like whether to feed the poor, should be decided on ethical and political grounds in a democracy.
In this case, we don’t even know what the long term risks are from the virus. So we should listen to the doctors, who are the real experts.
There is a kind of ‘end of days’ feel about the Trump govt, despite the polls that show him as competitive in those key states.
My guess is that they haven’t found the right Trump sycophant and corporate thief to fill the position yet.
https://www.washingtonpost.com/us-policy/2020/05/18/treasury-coronavirus-bailout-fund-cares-act/
Honest Donald expects us to believe him?
https://www.washingtonpost.com/politics/trump-says-he-is-taking-hydroxychloroquine-to-protect-against-coronavirus-dismissing-safety-concerns/2020/05/18/7b8c928a-9946-11ea-ac72-3841fcc9b35f_story.html
Cough, choke, gasp. Coffee went the wrong when I read this –
https://www.washingtonpost.com/national-security/pompeo-says-he-didnt-know-fired-inspector-general-was-investigating-him/2020/05/18/3ab08dca-9923-11ea-b60c-3be060a4f8e1_story.html
Dr. Dena GraysonVerified account @DrDenaGrayson
Numerous studies have shown ZERO benefit of #hydroxychloroquine, and this study in veterans showed more DEATHS in those who took the drug, yet @realDonaldTrump keeps hawking it.
https://apnews.com/a5077c7227b8eb8b0dc23423c0bbe2b2
Ken PlumeVerified account @KenPlume
Ken Plume Retweeted Dr. Dena Grayson
The moment when Fox News realizes that Trump will be killing off their viewer base.
Even Neil Cavuto is stunned by Trump’s announcement that he’s taking #hydroxychloroquine: “If you are in a risky population here, and you are taking this as a preventative treatment…it will KILL you. I cannot stress enough. This will KILL you
https://www.rawstory.com/2020/05/it-will-kill-you-fox-news-host-stunned-by-trumps-boast-hell-take-discredited-coronavirus-treatment/
I think we can say 12% of those polled had an IQ equal to room temperature.
I see everyone has made the appropriate comments about Morrison’s stupidity regarding China.
I would just like to add that in one thing China may have a point. There is a subsidy to farmers. It’s called the Diesel fuel rebate.
This could be the first salvo in the international climate trade war.
Victoria
Good question. I don’t think its (only) lack of education or intelligence. It must be at least in part psychological. People are first latching onto a stupid idea. Then they are holding onto it in face of evidence to the contrary. The first bit could be desperation and ignorance. The second bit could be stubbornness or arrogance.
But if I really knew the answer I would know why Australia fell for the Morrison government, or why people keep using financial planners.
poroti @ #44 Tuesday, May 19th, 2020 – 6:13 am
I wonder if we’ll get an age breakdown.
citizen @ #36 Tuesday, May 19th, 2020 – 6:07 am
Maybe DC still is a malarial swamp and it’s an admission that he has failed to drain it?
Socrates
It would require truly profound ignorance to believe radio waves spread a virus.
https://www.theage.com.au/national/three-random-words-saved-cornelia-on-a-cold-wet-day-of-bushwalking-20200515-p54sxa.html
Guytaur
Further to the gullibility Victoria and I discussed, most of those barley growers have probably voted National or Liberal since the day they failed high school. Careless words from those parties are destroying their incomes. Yet they will mostly keep voting for them like lemmings.
This is huge and overlooked in debate.
https://www.abc.net.au/news/2020-05-19/coronavirus-rental-hardship-pushed-down-the-line/12259322
It’s no wonder Morrison wants the sport distraction back.
$14 000 in debt with losing your home as the insecurity. No wonder stress and suicides are of major concern.
Businesses are manipulating their cash flows to artificially suppress monthly revenue and game the federal government’s $130 billion wage subsidies, adding to cost blowout pressures on the coronavirus stimulus program.
To qualify for JobKeeper a business must record or credibly forecast at least a 30 per cent decline in monthly or quarterly revenue between March 30 and September 27, compared to the same period last year. Large companies with annual turnover above $1 billion must suffer a 50 per cent revenue decline.
Once eligible a business receives the $1500 a fortnight payment for each worker for six months, even if their revenue rebounds before the scheme expires in September.
Companies and sole traders such as tradespeople are delaying billing their clients and deferring undertaking work for customers, according to sources across the business, accounting and tax sectors.
Tax experts warned the Australian Taxation Office would target firms that artificially contrive their turnover to qualify for the wage subsidies.
Tax Institute senior tax Counsel Bob Deutsch said the cash flow boost from JobKeeper had been very well received by struggling businesses, but it was open to exploitation.
“One of the areas where there is likely to be manipulation is turnover,” he said.
“You only have to satisfy it once and henceforth you are in until September or they rewrite the rules.”
Grant Wilson, head of Asia-Pacific at macro advisory and data analytics firm Exante Data, said he was aware of accountants soliciting businesses to devise ways to qualify for the scheme.
“There is businesses moving revenue around and delaying invoices for a month to qualify for the whole six months,” he said.
“They are going out of their way to qualify for this very, very generous test to effectively write off the cost of their payroll for six months.”
“That’s not Australian, that’s not fair and it’s soaking up the funding so the people who really need it are going to get hurt.”
The program’s take-up has surged to more than 6.3 million workers across 888,249 entities, already surpassing the 6 million workers budgeted for under the uncapped $130 billion scheme.
Treasury is due to review the scheme by June.
Prime Minister Scott Morrison said last week “there’ll be some things to sort out” on JobKeeper, but that so far the changes required were relatively modest.
About 40 per cent of enrolled businesses are sole traders, 39 per cent are companies, 15 per cent are trusts and 6 per cent are partnerships.
The ATO has published an integrity rule aimed at stopping “contrived and artificial arrangements” that technically satisfy the eligibility requirements, but have been implemented for the sole or dominant purpose of accessing a JobKeeper payment.
This includes bringing forward or delaying making supplies to a third-party customer.
HLB Mann Judd tax partner Peter Bembrick said the ATO could go after any “schemes” linked to JobKeeper.
“There are anti-avoidance integrity measures in the rules if sales turnover is pushed, for example from April into May.”
“Anything that manipulates the numbers, the ATO can go after that.”
K&L Gates tax partner Matthew Cridland said some businesses that had received JobKeeper may not be genuinely eligible and could have to pay back the ATO, plus penalties and interest.
“To date the ATO has treated taxpayers with a velvet glove, but it will revert to the iron fist.”
“If an employer makes business decisions that result in a decline in turnover, they may qualify for JobKeeper. However, it does not follow that they were genuinely eligible to access JobKeeper,” Mr Cridland said.
“The ABC [Artificial, Blatant and Contrived] test would then apply where you would be asked was the scheme artificial, blatant or contrived? Was it undertaken with a sole or dominant purpose of accessing or inflating JobKeeper payments?
“Ideally employers would have their eligibility reviewed and signed off by an external adviser that has taken into account the integrity measures.
“However, many employers are understandably wanting to save on costs and some may view this as an unnecessary expense.”