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Treasury debated clawing back jobkeeper from businesses three months into subsidy scheme

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Officials chose not to alter jobkeeper rules out of fear the change may have ‘muted’ Australia’s recovery, report reveals

Treasury considered imposing a clawback mechanism for jobkeeper three months into the wage subsidy scheme, but chose not to change the rules because that would have “reduced the overall level of activity and muted the recovery”.

The Scott Morrison government has been criticised for providing generous support to businesses that increased profits and revenue during the pandemic – in contrast with the Coalition’s more punitive approach to chasing welfare debts.

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