The government is considering cutting the JobKeeper payment early because of fears it’s creating “zombie” companies.
Deloitte’s Chris Richardson told news.com.au the wage subsidy is putting businesses on life-support that will disappear as soon as it’s removed.
As a result, workers will be forced onto unemployment benefits.
“One pandemic is enough for a lifetime and there is a risk that JobKeeper, as a measure designed to preserve jobs, could eventually create ‘zombie firms’ that neither fully recover but don’t go bankrupt.
“This would slow the broader recovery.”
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