ATO has received thousands of tip-offs about JobKeeper swindles

The Australian Taxation Office has received thousands of tip-offs about people allegedly rorting JobKeeper payments but nobody has been penalised.

Australian Treasurer Josh Frydenberg

Australian Treasurer Josh Frydenberg says the enforcement of JobKeeper breaches is a matter for the ATO. Source: AAP

Thousands of businesses have potentially rorted JobKeeper payments but none have been penalised.

The Australian Taxation Office has received 8,000 tip-offs in relation to 6,250 businesses or sole traders swindling the wage subsidy scheme since it began in late March.

At least 2,200 employees have been found to be double-dipping on multiple payments.

Employers found to have knowingly ripped off the system face fines of up to $126,000 or 10 years in prison.
Roughly 15,000 businesses enrolled in JobKeeper have been deemed ineligible, according to ATO figures.

But while thousands of businesses have been told to repay JobKeeper overpayments, no financial penalties have been applied.

A financial crime task force has 10 cases under investigation.

Federal Treasurer Josh Frydenberg says the enforcement of JobKeeper breaches is a matter for the ATO.

"Whilst we recognise most businesses and employees are doing the right thing, there are a range of penalties available to the ATO, consistent with other tax laws they administer," he told AAP on Monday.
But Labor says Mr Frydenberg is responsible for ensuring the scheme can balance legitimate mistakes against deliberate rorting, which should be punished.

"We're relying heavily on JobKeeper to keep people in work," shadow treasurer Jim Chalmers said.

"But in order to do that we need to make sure it's not wasted, we're getting bang for buck, that there are the right compliance regimes, that people aren't doing the wrong thing."
The most common JobKeeper tip-offs relate to allegations of employers not passing on the full $1,500 a fortnight, businesses not meeting turnover requirements, fair work issues such as penalty rates, and employee eligibility.

"If an overpayment of JobKeeper is identified, we may decide the overpayment does not have to be repaid, particularly if there was an honest mistake," an ATO spokeswoman said.

But recovering overpayments from people who acted dishonestly might include penalties, she said.

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3 min read
Published 14 September 2020 3:06pm
Updated 14 September 2020 3:58pm
Source: AAP, SBS



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