JobKeeper: A proposal for clawing back unnecessary spending

by David Richardson

Rather than dumping JobKeeper, we can reform it in such a way that more of the payment is clawed back by the government and that can be done by making it taxable at a much higher rate than other business income. This can be achieved very quickly, merely by increasing the rate at which JobKeeper is taxable for companies earning a profit. That change would mean that the net cost of JobKeeper would fall immediately and would continue falling as the economy improves.

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