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JobKeeper 2 victory for dealers
GoAuto News, Sandringham  by John Mellor
12 Aug 2020
General News - Page 24 - 453 words - ID 1315959643 - Photo: Yes - Type: News Item - Size: 329.00cm2

Industry wins important recasting of the JobKeeper 2 conditions from the Treasurer

THE Motor Trades Association of Australia (MTAA) with strong secretariat support from the Victorian Automobile Chamber of Commerce (VACC) has won major concessions in the rules relating to which businesses would qualify for JobKeeper 2 employee support when JobKeeper 1 ends in late September.

The changes negotiated with treasury mean that instead of the GST returns for the June quarter dictating whether a dealership qualifies for JobKeeper 2, the treasurer has now accepted that the criteria from JobKeeper 2 will be applied to the September quarter.

The January JobKeeper 2 payments will now be based on the December quarter.

In addition, anyone who has managed to put on employees between March 1 and July 1 can now count those people into JobKeeper if they are otherwise eligible.

Richard Dudley, CEO of the MTAA, who played a key role in the negotiations with the government, told GoAutoNews Premium: "They have listened to us. We have won considerable benefits.

"We were very concerned about JobKeeper 2 because the revised criteria for accessing based on GST returns in the June quarter was going to seriously impact the automotive sector and in particular new car retailing.

"The problem was that June was a bit of an anomaly because in some states businesses recovered somewhat and even in Victoria there were signs of a recovery as well." He said that what was put to the government was that normal end of tax year surge and the addition of the instant asset write-off combined to generate sales levels that were unlikely to be repeated in the remainder of the year and that using the June quarter as the basis for measuring real dealer financial performance for the purposes of continuing to qualify for JobKeeper was misleading.

Mr Dudley said that the June quarter also included sight-unseen contractual arrangements between the OEMs and their dealers like hold-back and bonuses which are paid at the end of the financial year but covered activities across the previous six months.

"So some of those hit the books in June as well and when it comes to a GST return, that was an anomaly that makes it look better than it actually was," he said.

"So we took all that information to the treasury department, the ATO and the Coronavirus Commission with meetings up until Thursday morning pushing very hard on all of those issues with options they might want to pursue and overnight the treasurer has announced exactly that.

"It will make a huge difference nationally but also across the 520plus dealers across Victoria in particular who can all now plan effectively past September 28 when JobKeeper 1 runs out."

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