Senate debates

Monday, 31 August 2020

Bills

Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020; Second Reading

6:24 pm

Photo of Matt O'SullivanMatt O'Sullivan (WA, Liberal Party) Share this | Hansard source

I rise to speak on the Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020, and I do so with great pleasure. May I add that I welcome the Labor Party's support for this bill. It was great to see Senator Farrell, earlier in the debate, acknowledge how successful this program has been. He was trying to wrangle credit for the program for the Labor Party, but I welcome the support of this bill by the Labor Party nonetheless.

This bill extends the prescribed period of the coronavirus payment framework for the JobKeeper payment from 31 December 2020 to 28 March 2021. This bill also amends the information-sharing arrangements to enable the ATO to share JobKeeper payment information with Commonwealth, state and territory government agencies to assist them in their efforts to address the impacts of the coronavirus, and this would include such information as uptake of differing programs by area. The JobKeeper payment is a key part of the government's response to the significant economic consequences of the coronavirus pandemic—and these effects are still being felt by many, many businesses—and the government is extending and better targeting the JobKeeper payment to support businesses and their workers as they manage and recover from the economic effects of the coronavirus.

As a senator for Western Australia, I've travelled extensively across the state this year, as I know Senator Brockman has done. I acknowledge his presence and his commitment to getting out into the regions. He, I'm sure, would share the same sentiment that we're feeling—that, as we get out and about, this response to the coronavirus pandemic in supporting businesses has been very, very significant. I've said in this chamber many times before that I've heard some quite inspiring stories of invention, ingenuity, adaption and resilience, and I've also heard many stories of those hit hardest by the pandemic and hit hardest by the economic shutdown and the resulting economic shock. Businesses right across WA and those around the Perth metro area, also including those in the great southern and right up in the far north of our state, have all the felt the impacts of the economic shock that's come as a result of the coronavirus.

The industries and the impacts that they have sustained have been substantially different—of course, no two stories are the same—but the Morrison government has continued to back them. This pandemic is impacting businesses differently. Whether you're across various parts of the state or across the nation, it certainly has—and no two stories are the same. This has been reflected in all of my conversations around Western Australia. Time and time again, I've heard stories of how JobKeeper saved jobs and allowed businesses to keep their doors open.

In Albany, in the south of my state, I spoke with Toni from World of Cars who was going to have to let go of her staff. On the day that she was about to announce to her staff that she was going to have to stand them down, the announcement of JobKeeper came in. That announcement came just at the perfect time, because it was only going to be later on that afternoon that she was going to deliver the most awful news to her staff—that they were going to have to be stood down. But because of the JobKeeper program and this government's response, she was able to hang on to those 25 full-time employees. As she told me this story, she was holding back tears. These people are small business people who care deeply about their employees. They know what it would mean to them, but they also recognise what it would mean to their business had they lost those staff. The cost of letting go of staff and then having to rehire and retrain people is astronomical, and it would be a major barrier to their business getting back up and running after we're through the impact of this economic shock.

We continue to listen to businesses like Toni's, and we continue to back them. We will continue to do everything we can to make sure that they are in the best possible position to bounce back in the recovery phase. On 21 July, the government announced that the JobKeeper payment would be extended for an additional six-month period—from 28 September to 28 March 2021—with eligibility retested and targeted to those businesses most in need. In addition, the payment will be restructured into a two-tiered system from 28 September 2020.

As I've gone around Perth, I find that Perth has actually been doing remarkably well through this pandemic. Many businesses are doing quite well. A good friend of mine runs a plumbing business, and he says he's actually never been busier. But then you look at other businesses, particularly those in the hospitality sector or the tourism sector. In my travel up north, I was in the east Kimberley. Broome is doing quite well; Broome is in the west Kimberley. But, in the east Kimberley, businesses are really suffering. They call the Great Northern Highway the longest cul-de-sac in the world because of the border closure. The grey nomads who normally come up from the south to escape the winter cold would often spend some time in Broome and then start heading east towards Kununurra. Many would do a full lap around the country. Quite possibly, those coming from the east would start in the north, head to the Kimberley and Kununurra and then go all the way down to Perth. But, because of the border closure, there is a cul-de-sac, essentially. These businesses are really, really struggling.

The government recognises that there are businesses that are doing okay and there are businesses that are not. Because of the nature of their business and where they're situated, they're going to have differing impacts. This legislation is all about supporting those businesses whose downturn came more recently than others who were affected right at the very beginning. We are responsive to that. We've recognised where the program can be improved. We've taken feedback. We've listened to businesses and we've listened to people on the ground. We've taken that feedback on board and we're implementing it in such a way that the impact is felt where it is most needed. These temporary amendments to the Fair Work Act 2009 support the practical operation of the JobKeeper scheme and help to keep Australians employed and connected to their workplaces. They've been absolutely critical in keeping more people in work.

A survey of employers commissioned by the Attorney-General's Department shows that the flexibility measures issued under the temporary Fair Work Act amendments have been vital for businesses to survive the impact of the pandemic and save jobs. That is the singular focus not just of this legislation but also, importantly, of this government—to do what we can as a government to ensure that we are protecting jobs at this critical time. We cannot allow industrial issues to get in the way of a good commonsense approach to keeping a job and enabling people to be sustained in that job. This legislation goes to addressing the issues that many businesses have been facing. What employers have fed back to us is the flexibility of it, and that's why we have implemented it as part of this bill. Due to the ongoing economic impacts of the coronavirus and the extension of the JobKeeper payment scheme, the temporary changes in the Fair Work Act will be extended until 28 March 2021. However, the provisions relating to annual leave agreements will be repealed on 28 September 2020, as originally intended. Employers who qualify for the JobKeeper payment scheme on or after 28 September 2020 will be able to access the remaining temporary flexibilities in the Fair Work Act.

Businesses, as I've said, have had to deal with so much through this coronavirus pandemic—the health issues and the resulting economic impact. It is this government's commitment that we will ensure that we're adapting and that we're responsive to needs as they come up. In Western Australia, we need to really see things energised and to get back in a sustainable way. I look forward to having further contributions in the debate around what we need to be doing, because it is more than just keeping people safe. We of course must keep our communities safe and prevent the spread of the coronavirus, and everyone needs to be doing absolutely everything they can.

We also need to be looking at what we can do at various levels of government—whether local government, state government or federal government—to ensure that we are creating the right economic environment so that businesses can actually grow, develop and take advantage of the opportunities that are being provided through economic stimulus programs that are putting resources and capital into the economy. But none of that would be possible if businesses were having to let go of people because they couldn't hang onto them. It's only possible to take advantage of the stimulatory measures that are being put in place by this government and then state governments because of the support that is there for businesses to hold onto their staff. That's why this legislation is so critical. I'm very pleased that the opposition supports this and look forward to hearing further debate.

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