JobKeeper ‘failed’ early-stage tech firms

The government’s JobKeeper wage subsidy scheme has “failed” early-stage pre-revenue tech companies, with more support needed following the September cut-off, a Parliamentary inquiry has heard.

The Select Committee on Financial Technology and Regulatory Technology held a public hearing on Tuesday focused on RegTech and the impact of COVID-19.

The inquiry was told that many high-growth early-stage companies had been locked out of much of the government support put in place to help businesses survive the ongoing crisis, and that FinTechs have had “even less of a seat at the table” with the government this year.

Australian Small Business Ombudsman Kate Carnell confirmed that many startups and early-stage firms have been unable to access JobKeeper.

“Where JobKeeper failed – and we’ve made this clear publicly before – was in fast-growth startups in this space that had yet to sell product,” Ms Carnell told the hearing.

“They were growing really quickly, they were growing the business and growing their offering, but had not yet signed a contract or been paid. Of course, they weren’t just in at all.”

While a number of groups successfully lobbied the government to alter the scheme to allow for more startups to access the wage subsidy, many still missed out.

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Source: JobKeeper ‘failed’ early-stage tech firms – InnovationAus