JobKeeper – the lifeline or cash cow?

Check out this article in the SMH.

For many businesses, JobKeeper was the life support machine that kept them afloat, hopefully to bounce back and recover. Saving jobs and communities. Perfect.

For many others, whilst JK was a life support machine, it was simply delaying the inevitable. It kept some businesses alive, and in so doing may lead to collateral damage to other businesses, taking them with them on their delayed demise. Not quite so perfect.

For others JK was a cash cow. Kicking off millions in government subsidy for businesses that whilst initially, possibly, negatively impacted by covid, recovered very quickly but continued, legally, but possibly inappropriately to bank the hand outs.

The people are speaking – they would like to know who took the handouts. Should this info be revealed?

We will not take a position on this, but we certainly encourage any director at a firm who accessed JobKeeper money to each out to an insolvency professional to see where they stand and options to help the business to restructure and move forward into the recovery stage. Or, exit if that is the desired option.

In all cases, an ASIC registered insolvency professional is the only person you should reach out to for qualified, expert advice.