Government’s $60bn JobKeeper cost error could see program extended for tourism sector
Underspending on the federal government’s JobKeeper scheme could see it extended beyond six months for the tourism sector.
The estimated cost of the program has now been cut nearly in half, falling from $130 billion to around $70 billion.
It comes as the number of people on JobKeeper was revised by three million after the Department of the Treasury and tax office revealed “significant errors” by businesses.
Prime Minister Scott Morrison and Treasurer Josh Frydenberg (pictured above) have taken responsibility for the forecasting mistake.
However, Treasurer Frydenberg told the ABC’s News Breakfast he could use the unspent money to extend JobKeeper payments beyond six months for tourism operators, with the program expected to be reviewed next month.
“The tourism sector could be one sector in need of further support,” he said.
“That’s what we’ll look at in the context of the economic situation at the time.”
Treasurer @JoshFrydenberg says the Government won't make "wholesale changes" to the JobKeeper program after the $60 billion miscalculation was revealed.
He also reiterated the doubling of the subsidy for job seekers is temporary. pic.twitter.com/qTUB2j5bWm
— News Breakfast (@BreakfastNews) May 24, 2020
There are now calls for JobKeeper to be expanded to cover arts and entertainment workers, university staff and many casual workers, who have been deliberately excluded from the scheme, the Australian Associated Press reported.
While economists say the windfall must be spent to prevent another wave of job losses, amid the coalition’s framing of the JobKeeper bungle as cost-saving and “good news” for taxpayers.
“Maybe we’re not looking at a 10 per cent drop in GDP, maybe we’re looking at 5 per cent, but that’s still significant – so the economy still needs support to get going again,” Angela Jackson, an economist at Equity Economics, told The New Daily.
However, Treasurer Frydenberg told News Breakfast he has no plans to make “wholesale changes” to the scheme.
Bunnik Tours chief executive Dennis Bunnik had called for JobKeeper payments to be extended beyond September before federal treasury revealed the cost error for the program.
He believes that until international borders re-open – with Tourism Minister Simon Birmingham suggesting they could remain closed until the end of the year and into 2021 – the industry will remain in a “severe crisis”.
“Having JobKeeper stop in September is not an option, especially for the tourism industry,” Bunnik told Travel Weekly. “It needs to be extended.”
The consequence of not extending the program beyond the six-month cut-off would be two-fold, Bunnik said, with financial collapse running alongside the risk that talented tourism professionals will leak out of the industry.
“Overall, the industry will lose a massive amount of talent,” he said.
“And then when the recovery does come, we’ll have the issue that there’s a massive skill shortage.”
Bunnik, who is also the chair of the Council of Australian Tour Operators (CATO), said his association is now involved in a concerted effort to get that message through to government.
The Tourism & Transport Forum (TTF) said that if small to large tourism businesses are to survive, the industry would need ongoing support to retain critical staff.
“The industry will be terrifically damaged if we cannot retain the businesses, particularly in regional areas, that provide the content and experiences that travellers expect,” TTF chief executive Margy Osmond said.
“From a business traveller perspective with limited aviation opportunity, border uncertainty and no clear view of when major business events may be viable again the need in the conferencing and events sector is also acute.”
According to research commissioned by the TTF, Australia’s tourism industry is bleeding more than $9.6 billion per month and will see the loss of over 400,000 jobs.
“To survive this perfect storm the industry must have critical support and the surplus in the JobKeeper funding fits that bill,” Osmond said.
Domestic tourism, which may return country-wide by July, could play a part in offsetting some losses due to travel restrictions, with net tourism imports to Australia worth $20 billion per year.
The Travel Corporation is one company banking on a domestic tourism boom and has expanded its line-up of Australian product, while the caravan industry is preparing for a rebirth of the road tripper.
Bunnik believes the opening up of domestic borders “is a small step”, but not the answer to tourism’s problems.
“The answer for the industry is the opening up of international borders, and Australians being able to travel overseas again,” he said.
“And until that happens, the industry is going to remain in a pretty severe crisis.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
bunnik tours Dennis Bunnik JobKeeper Josh Frydenberg margy osmond scott morrison tourism & transport forumLatest News
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
Malolo Island Resort opens brand new Spa
Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.
Visit Sunshine Coast reveals new brand identity
If you were looking for another reason to visit the Sunshine Coast then this is it.
Sofitel launches brand campaign starring Sex Education’s Gillian Anderson
We can confirm the content of this video is less spicy than Sex Education.
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!