Treasurer Josh Frydenberg admits $60 billion JobKeeper error is “regrettable”
Prime Minister Scott Morrison has taken responsibility for a “regrettable” $60 billion JobKeeper reporting error.
In an opinion piece published on The Australian Monday, Treasurer Josh Frydenberg said Treasury massively overestimated the number of people who would need the JobKeeper wage subsidy because it assumed in March the COVID-19 health crisis would be much worse.
The Federal Government had previously said more than 6 million workers would receive $1,500 fortnightly wage subsidy, but on Friday admitted that the scheme would only cover about half that number.
It also revised the program’s estimated cost from $130 billion to $70 billion.
“Ultimately, I have to take responsibilities for those things,” Morrison said on Sunday.
“So sure, the estimate was overstated.
“But what it means is Australians won’t have to borrow as much money. This is not money that is sitting in the bank somewhere, this $60 billion, that is all money that would have otherwise had to be borrowed.”
On Friday, Frydenberg said the mistake was “good news” and had been picked up before it impacted the payments that the government had already released.
“It is welcome news that the impact on the public purse from the program will not be as great as initially estimated,” he said.
Labor has called for Frydenberg to explain the miscalculation to a Senate inquiry.
Opposition Senate Leader Penny Wong told the ABC’s Insiders the mistake was a “$60 billion black hole in the economic credibility” of the government.
“When you’ve got a budget blunder of this size, I reckon it’s about time you fronted up and explained it,” Wong said.
Wong previously said the $60 billion should be used to expand the JobKeeper program to include more casuals.
Frydenberg said he would not answer calls from Labor to front a senate committee.
“This is just a political stunt from the Labor Party,” he told the ABC on Monday.