Australia disbursed A$27 billion to firms that did not qualify for subsidies
The Australian government has disbursed some A$27 billion (US$20 billion) subsidies under its JobKeeper wage subsidy programme to businesses that did not qualify for the programme, according to an analysis by the Australian Treasury.
Some of these were paid out to firms with revenues that did not fall sufficiently enough to qualify, while others were made to companies with increased revenues over the period.
The government paid out A$11.4 billion (US$8.36 billion) in Q2′ 2020, and A$15.6 billion (US$11.45 billion) in Q3′ 2020 to businesses that did not have a 30% or 50% decline in sales compared with a year earlier, the Australian Treasury highlighted in a report.
Some A$4.6 billion (US$3.38 billion) was paid out to companies with an increase in revenue over the year to June quarter, while A$9.2 billion (US$6.75 billion) was made to businesses with an increase over the year to the September quarter, highlighted the report.
About A$12.1 billion (US$8.88 billion), or 88% of the total of payments were made to firms with increased revenue over the period, which were small businesses.
Many of these firms had been allowed to use an alternative test to determine their eligibility, as sales relative to a year earlier was not a good indication of the pandemic’s impact on their business, reports Bloomberg.